Bill Text: TX SB2 | 2021-2022 | 87th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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: Partisan Bill (Republican 3-0)

Status: (Passed) 2021-06-08 - Effective immediately [SB2 Detail]

Download: Texas-2021-SB2-Introduced.html

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87R11933 CXP-F
By: Hancock S.B. No. 2

A BILL TO BE ENTITLED
AN ACT
relating to independent organizations certified to manage power
regions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.151, Utilities Code, is amended by
amending Subsections (d), (g), and (g-1) and adding Subsection
(g-2) 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 [establishing] or
enforcing such rules. Rules [Any such rules] adopted by an
independent organization and [any] enforcement actions taken by the
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, other than members described by Subdivisions
(1) and (2), be a resident of this state. 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,
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;
(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-1) The bylaws of an independent organization must
require that the [The] presiding officer of the governing body must
be:
(1) one of the members described by Subsection (g)(7);
and
(2) selected by the governor with the advice and
consent of the senate.
(g-2) 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 before
receiving commission approval.
SECTION 2. 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 3. 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.