87R10667 CXP-D
 
  By: Dominguez H.B. No. 2544
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the governing body of the independent organization
  certified to manage the ERCOT power region.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 39.151, Utilities Code, is amended by
  amending Subsection (g) and adding Subsections (g-2) and (g-3) to
  read as follows:
         (g)  To maintain certification as an independent
  organization under this section, an organization's governing body,
  other than the ex officio members listed in this subsection, must be
  composed of persons specified by this section who represent the
  various geographic regions of this state, who have expertise in the
  field of power generation or transmission and distribution, and who
  are 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
  the use of a professional search firm to identify candidates for
  membership of unaffiliated members. 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;
               (4)  six market participants elected by their
  respective market segments to serve one-year terms, with:
                     (A)  one representing independent generators;
                     (B)  one representing investor-owned utilities;
                     (C)  one representing power marketers;
                     (D)  one representing retail electric providers;
                     (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 one-year term;
               (6)  one member representing large commercial consumer
  interests selected in accordance with the bylaws to serve a
  one-year term; and
               (7)  five members unaffiliated with any market segment
  and selected by the other members of the governing body to serve
  three-year terms.
         (g-2)  To qualify to serve as a member of the governing body
  under Subsection (g)(4), (5), (6), or (7), a person must be a
  resident of this state.
         (g-3)  To maintain certification as an independent
  organization under this section, an organization's chief executive
  officer must be a resident of this state.
         SECTION 2.  (a)  An independent organization certified under
  Section 39.151, Utilities Code, by the Public Utility Commission of
  Texas before September 1, 2021, shall hold elections and select new
  members as needed to modify the organization's governing body to
  comply with Section 39.151, Utilities Code, as amended by this Act,
  as soon as practicable, but not later than September 1, 2022.
         (b)  An independent organization certified under Section
  39.151, Utilities Code, by the Public Utility Commission of Texas
  before September 1, 2021, shall ensure that the chief executive
  officer of the organization is a resident of this state as soon as
  practicable, but not later than September 1, 2022.
         (c)  After September 1, 2022, the Public Utility Commission
  of Texas may decertify an independent organization whose governing
  body or chief executive officer does not comply with Section
  39.151, Utilities Code, as amended by this Act.
         SECTION 3.  This Act takes effect September 1, 2021.