| 1 | 1 | | By: Solomons H.B. No. 2421 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the independent organization certified to perform |
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| 7 | 7 | | certain functions for a power region. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 12.005, Utilities Code, is amended to |
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| 10 | 10 | | read as follows: |
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| 11 | 11 | | Sec. 12.005. APPLICATION OF SUNSET ACT. (a) The Public |
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| 12 | 12 | | Utility Commission of Texas is subject to Chapter 325, Government |
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| 13 | 13 | | Code (Texas Sunset Act). Unless continued in existence as provided |
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| 14 | 14 | | by that chapter or by Chapter 39, the commission is abolished and |
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| 15 | 15 | | this title expires September 1, 2011. |
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| 16 | 16 | | (b) The Sunset Advisory Commission shall conduct a |
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| 17 | 17 | | special-purpose review of the Electric Reliability Council of Texas |
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| 18 | 18 | | as part of the commission's review of the Public Utility Commission |
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| 19 | 19 | | of Texas for the 82nd Legislature. The sunset commission's report |
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| 20 | 20 | | to the 82nd Legislature regarding the review must include an |
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| 21 | 21 | | assessment of the governance, management, and operating structure |
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| 22 | 22 | | of the council and the council's compliance with the duties and |
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| 23 | 23 | | requirements placed on it by the legislature and the Public Utility |
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| 24 | 24 | | Commission of Texas. The sunset commission's report under this |
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| 25 | 25 | | subsection may include any recommendations it considers |
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| 26 | 26 | | appropriate. This subsection expires September 1, 2011. |
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| 27 | 27 | | SECTION 2. Sections 39.151(g) and (g-1), Utilities Code, |
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| 28 | 28 | | are amended to read as follows: |
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| 29 | 29 | | (g) To maintain certification as an independent |
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| 30 | 30 | | organization under this section, an organization must operate a |
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| 31 | 31 | | regional electrical network that is located entirely in this state. |
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| 32 | 32 | | The [an] organization's governing body must be composed of persons |
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| 33 | 33 | | specified by this section and selected in accordance with formal |
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| 34 | 34 | | bylaws or protocols of the organization. The bylaws or protocols |
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| 35 | 35 | | must be approved by the commission and must reflect the input of the |
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| 36 | 36 | | commission. The bylaws must [specify the process by which |
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| 37 | 37 | | appropriate stakeholders elect members and, for unaffiliated |
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| 38 | 38 | | members,] prescribe the professional qualifications necessary for |
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| 39 | 39 | | selection as a member of the organization and[. The bylaws must] |
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| 40 | 40 | | require the use of a professional search firm to identify |
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| 41 | 41 | | candidates for membership of unaffiliated members. The process |
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| 42 | 42 | | must allow for commission input in identifying candidates. The |
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| 43 | 43 | | governing body must be composed of: |
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| 44 | 44 | | (1) each commissioner [the chairman of the commission] |
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| 45 | 45 | | as an ex officio nonvoting member; |
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| 46 | 46 | | (2) the counsellor as an ex officio voting member |
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| 47 | 47 | | representing residential and small commercial consumer interests; |
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| 48 | 48 | | (3) the chief executive officer of the independent |
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| 49 | 49 | | organization as an ex officio voting member; |
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| 50 | 50 | | (4) [six market participants elected by their |
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| 51 | 51 | | respective market segments to serve one-year terms, with: |
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| 52 | 52 | | [(A) one representing independent generators; |
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| 53 | 53 | | [(B) one representing investor-owned utilities; |
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| 54 | 54 | | [(C) one representing power marketers; |
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| 55 | 55 | | [(D) one representing retail electric providers; |
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| 56 | 56 | | [(E) one representing municipally owned |
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| 57 | 57 | | utilities; and |
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| 58 | 58 | | [(F) one representing electric cooperatives; |
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| 59 | 59 | | [(5)] one member representing industrial consumer |
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| 60 | 60 | | interests and elected by the industrial consumer market segment to |
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| 61 | 61 | | serve a one-year term; |
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| 62 | 62 | | (5) [(6)] one member representing large commercial |
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| 63 | 63 | | consumer interests selected in accordance with the bylaws to serve |
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| 64 | 64 | | a one-year term; and |
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| 65 | 65 | | (6) nine [(7) five] members unaffiliated with any |
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| 66 | 66 | | market segment and selected by the other members of the governing |
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| 67 | 67 | | body to serve three-year terms. |
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| 68 | 68 | | (g-1) The presiding officer of the governing body must be |
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| 69 | 69 | | one of the members described by Subsection (g)(6) [(g)(7)]. |
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| 70 | 70 | | SECTION 3. Not later than September 1, 2010, an independent |
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| 71 | 71 | | organization that is certified by the commission before September |
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| 72 | 72 | | 1, 2009, shall modify the organization's governing body to comply |
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| 73 | 73 | | with Section 39.151(g), Utilities Code, as amended by this Act. The |
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| 74 | 74 | | commission may decertify an independent organization that does not |
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| 75 | 75 | | comply with that section by September 1, 2010. |
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| 76 | 76 | | SECTION 4. This Act takes effect September 1, 2009. |
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