Amend CSSB 7 as follows:
      (1)  In Section 35.103(a), Utilities Code, in SECTION 18 of
the bill (Committee Printing page 8, line 66) strike "The" and
substitute "Except as provided in Section 35.104, the".
      (2)  In Section 35.104, Utilities Code, in SECTION 18 of the
bill (Committee Printing page 9, line 6) insert before "In a
certificated" the following new sentence:
      "Sections 35.102, 35.103, and 35.105 shall not apply to the
rates, retail service area, facilities or public retail customers
of a municipally owned electric utility that has not adopted
customer choice or an electric cooperative that has not adopted
customer choice."
      (3)  In Section 35.104, Utilities Code, in SECTION 18 of the
bill (Committee Printing page 9, line 7) insert "of an electric
utility" between "service area" and "in which customer choice has
not been introduced,".
      (4)  In Section 35.105, Utilities Code, in SECTION 18 of the
bill (Committee Printing page 9, line 11) strike ", a municipally
owned utility, or an electric cooperative".
      (5)  In Section 35.105, Utilities Code, in SECTION 18 of the
bill (Committee Printing page 9, line 15) add to the end of the
section, "The rates of a municipally owned utility or electric
cooperative shall be set in accordance with the provisions of
Chapter 40 and 41, respectively."