Bill Text: TX HB10 | 2021-2022 | 87th Legislature | Comm Sub
Bill Title: Relating to the governance of the Public Utility Commission of Texas, the Office of Public Utility Counsel, and an independent organization certified to manage a power region.
Spectrum: Slight Partisan Bill (Republican 32-12)
Status: (Engrossed - Dead) 2021-05-25 - Placed on intent calendar [HB10 Detail]
Download: Texas-2021-HB10-Comm_Sub.html
By: Paddie, et al. (Senate Sponsor - Schwertner) | H.B. No. 10 | |
(In the Senate - Received from the House March 31, 2021; | ||
April 8, 2021, read first time and referred to Committee on | ||
Jurisprudence; May 22, 2021, reported adversely, with favorable | ||
Committee Substitute by the following vote: Yeas 5, Nays 0; | ||
May 22, 2021, sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR H.B. No. 10 | By: Hinojosa |
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relating to the governance of the Public Utility Commission of | ||
Texas, the Office of Public Utility Counsel, and an independent | ||
organization certified to manage a power region. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 12.051(a), Utilities Code, is amended to | ||
read as follows: | ||
(a) The commission is composed of five [ |
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commissioners appointed by the governor with the advice and consent | ||
of the senate. | ||
SECTION 2. Section 12.053, Utilities Code, is amended by | ||
amending Subsections (a) and (b) and adding Subsection (a-1) to | ||
read as follows: | ||
(a) To be eligible for appointment, a commissioner must: | ||
(1) be a qualified voter; | ||
(2) be a citizen of the United States; | ||
(3) be a resident of this state; | ||
(4) be a competent and experienced administrator; | ||
[ |
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(5) have at least five years of experience: | ||
(A) in the administration of business or | ||
government; or | ||
(B) as a practicing attorney, [ |
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public accountant, or professional engineer. | ||
(a-1) At least two commissioners must be well informed and | ||
qualified in the field of public utilities and utility regulation. | ||
(b) A person is not eligible for appointment as a | ||
commissioner if the person: | ||
(1) at any time during the one year [ |
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preceding appointment: | ||
(A) personally served as an officer, director, | ||
owner, employee, partner, or legal representative of a public | ||
utility regulated by the commission or of an affiliate or direct | ||
competitor of a public utility regulated by the commission; [ |
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(B) owned or controlled, directly or indirectly, | ||
more than a 10 percent interest in a public utility regulated by the | ||
commission or in an affiliate or direct competitor of a public | ||
utility regulated by the commission; or | ||
(C) served as an executive officer listed under | ||
Section 1, Article IV, Texas Constitution, other than the secretary | ||
of state, or a member of the legislature; or | ||
(2) is not qualified to serve under Section 12.151, | ||
12.152, or 12.153. | ||
SECTION 3. Section 13.022(a), Utilities Code, is amended to | ||
read as follows: | ||
(a) The counsellor must: | ||
(1) be licensed to practice law in this state and a | ||
resident of this state; | ||
(2) have demonstrated a strong commitment to and | ||
involvement in efforts to safeguard the rights of the public; and | ||
(3) possess the knowledge and experience necessary to | ||
practice effectively in utility proceedings. | ||
SECTION 4. Section 39.151, Utilities Code, is amended by | ||
amending Subsections (d), (g), and (g-1) and adding Subsections | ||
(g-2), (g-3), and (g-4) to read as follows: | ||
(d) The commission shall adopt and enforce rules relating to | ||
the reliability of the regional electrical network and accounting | ||
for the production and delivery of electricity among generators and | ||
all other market participants, or may delegate to an independent | ||
organization responsibilities for adopting [ |
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enforcing such rules. Rules [ |
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independent organization and [ |
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organization under delegated authority from the commission are | ||
subject to commission oversight and review and may not take effect | ||
before receiving commission approval. An independent organization | ||
certified by the commission is directly responsible and accountable | ||
to the commission. The commission has complete authority to | ||
oversee and investigate the organization's finances, budget, and | ||
operations as necessary to ensure the organization's | ||
accountability and to ensure that the organization adequately | ||
performs the organization's functions and duties. The organization | ||
shall fully cooperate with the commission in the commission's | ||
oversight and investigatory functions. The commission may take | ||
appropriate action against an organization that does not adequately | ||
perform the organization's functions or duties or does not comply | ||
with this section, including decertifying the organization or | ||
assessing an administrative penalty against the organization. The | ||
commission by rule shall adopt procedures governing | ||
decertification of an independent organization, selecting and | ||
certifying a successor organization, and transferring assets to the | ||
successor organization to ensure continuity of operations in the | ||
region. The commission may not implement, by order or by rule, a | ||
requirement that is contrary to an applicable federal law or rule. | ||
(g) To maintain certification as an independent | ||
organization under this section, an organization's governing body | ||
must be composed of persons specified by this section and selected | ||
in accordance with formal bylaws or protocols of the organization. | ||
The bylaws or protocols must be approved by the commission and must | ||
reflect the input of the commission. The bylaws must specify the | ||
process by which appropriate stakeholders elect members and, for | ||
unaffiliated members, prescribe professional qualifications for | ||
selection as a member. The bylaws must require that every member of | ||
the governing body be a resident of this state and prohibit a | ||
legislator from serving as a member. The bylaws may require the use | ||
of a professional search firm to identify candidates for | ||
[ |
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(4), (5), and (6). The process must allow for commission input in | ||
identifying candidates. The governing body must be composed of: | ||
(1) the chairman of the commission as an ex officio | ||
nonvoting member; | ||
(2) the counsellor as an ex officio voting member | ||
representing residential and small commercial consumer interests; | ||
(3) the chief executive officer of the independent | ||
organization as an ex officio voting member, who must be appointed | ||
by the governor with the advice and consent of the senate; | ||
(4) six market participants elected by their | ||
respective market segments to serve two-year [ |
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with: | ||
(A) one representing independent generators, | ||
elected by a majority vote of the members of this market segment who | ||
each own and control five percent or more of the installed | ||
generation capacity located in the power region; | ||
(B) one representing investor-owned utilities; | ||
(C) one representing power marketers; | ||
(D) one representing retail electric providers | ||
who may not be affiliated with an independent generator; | ||
(E) one representing municipally owned | ||
utilities; and | ||
(F) one representing electric cooperatives; | ||
(5) one member representing industrial consumer | ||
interests and elected by the industrial consumer market segment to | ||
serve a two-year [ |
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(6) one member representing large commercial consumer | ||
interests selected in accordance with the bylaws to serve a | ||
two-year [ |
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(7) five members unaffiliated with any market segment | ||
who must be appointed by the governor with the advice and consent of | ||
the senate [ |
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to serve two-year [ |
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(g-1) The bylaws of an independent organization must | ||
require that the [ |
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of the governing body must be: | ||
(1) [ |
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(g)(7); and | ||
(2) selected by the governor with the advice and | ||
consent of the senate. | ||
(g-2) A person does not qualify for appointment as a member | ||
of the governing body of an independent organization under | ||
Subsection (g)(3) or (7) if the person is required to register as a | ||
lobbyist under Chapter 305, Government Code. In making an | ||
appointment under Subsection (g)(3) or (7), the governor: | ||
(1) shall give preference to a person who has | ||
executive-level business experience representing a range of | ||
industries; and | ||
(2) may consider a person recommended by the | ||
legislature. | ||
(g-3) Members of the governing body of an independent | ||
organization certified under this section must serve staggered | ||
terms. A member described by Subsection (g)(4) or (5) must serve a | ||
term that expires in an even-numbered year. A member described by | ||
Subsection (g)(6) or (7) must serve a term that expires in an | ||
odd-numbered year. As soon as practicable after the date a member | ||
of the governing body's term expires, the appropriate authority | ||
must appoint or arrange for the election of a replacement in the | ||
same manner as the original appointment or election. If a vacancy | ||
occurs on the governing body, the appropriate authority must | ||
appoint or arrange for the election of a successor in the same | ||
manner as the original appointment or election to serve for the | ||
remainder of the unexpired term. | ||
(g-4) To maintain certification as an independent | ||
organization under this section, the organization's governing body | ||
must establish and implement a formal process for adopting new | ||
protocols or revisions to existing protocols. The process must | ||
require that new or revised protocols may not take effect until the | ||
commission approves a market impact statement describing the new or | ||
revised protocols. | ||
SECTION 5. In making appointments of commissioners to the | ||
Public Utility Commission of Texas under Section 12.051, Utilities | ||
Code, as amended by this Act, the governor shall assign staggered | ||
terms to the commissioners appointed to fill vacancies and to the | ||
commissioners appointed to new positions to ensure that the | ||
requirements of Section 30a, Article XVI, Texas Constitution, are | ||
met. | ||
SECTION 6. An independent organization certified under | ||
Section 39.151, Utilities Code, by the Public Utility Commission of | ||
Texas before September 1, 2021, shall modify the organization to | ||
comply with Section 39.151, Utilities Code, as amended by this Act, | ||
not later than September 1, 2021. After September 1, 2021, the | ||
Public Utility Commission of Texas may decertify an independent | ||
organization that does not comply with Section 39.151, Utilities | ||
Code, as amended by this Act. | ||
SECTION 7. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2021. | ||
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