(a) Unless an electric utility receives commission approval under Subsection (b), the utility may not sell or transfer a facility to an affiliate or otherwise consider the facility to be an eligible facility as defined by federal law if on May 27, 1995, the utility had a rate or charge in effect:
(1) for or in connection with the construction of the facility;
(2) for electric energy produced by the construction of the facility; or
(3) for electric energy produced by the facility other than a portion of a rate or charge that represents recovery of the cost of a wholesale rate or charge.
(b) The commission, after notice and hearing, may allow an electric utility to sell or transfer a facility governed by Subsection (a) to an affiliate or otherwise allow the facility to become an eligible facility only if the transaction:
(1) will benefit ratepayers of the utility making the sale or transfer;
(2) is in the public interest; and
(3) otherwise complies with state law.
(c) For purposes of this section, "electric utility" does not include a river authority.