86R7104 GRM-F
By: Hernandez H.B. No. 3377
A BILL TO BE ENTITLED
AN ACT
relating to a cybersecurity monitor for certain electric utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter E, Chapter 36, Utilities Code, is
amended by adding Section 36.213 to read as follows:
Sec. 36.213. ADJUSTMENT FOR CYBERSECURITY MONITOR COSTS FOR
CERTAIN UTILITIES. (a) This section does not apply to an electric
utility that operates solely outside of ERCOT and has not elected to
participate in the cybersecurity monitor program under Section
39.1516.
(b) The commission, on its own motion or on the petition of
an electric utility, shall allow the electric utility to recover
reasonable and necessary costs incurred in connection with
activities under Section 39.1516.
SECTION 2. Section 39.002, Utilities Code, is amended to
read as follows:
Sec. 39.002. APPLICABILITY. This chapter, other than
Sections 39.1516, 39.155, 39.157(e), 39.203, [39.903,] 39.904,
39.9051, 39.9052, and 39.914(e), does not apply to a municipally
owned utility or an electric cooperative. Sections 39.157(e),
39.203, and 39.904, however, apply only to a municipally owned
utility or an electric cooperative that is offering customer
choice. If there is a conflict between the specific provisions of
this chapter and any other provisions of this title, except for
Chapters 40 and 41, the provisions of this chapter control.
SECTION 3. Subchapter D, Chapter 39, Utilities Code, is
amended by adding Section 39.1516 to read as follows:
Sec. 39.1516. CYBERSECURITY MONITOR. (a) In this section,
"monitored utility" means:
(1) a transmission and distribution utility;
(2) a corporation described in Section 32.053;
(3) a municipally owned utility or electric
cooperative that owns or operates equipment or facilities in the
ERCOT power region to transmit electricity at 60 or more kilovolts;
or
(4) an electric utility, municipally owned utility, or
electric cooperative that operates solely outside the ERCOT power
region that has elected to participate under Subsection (d).
(b) The commission and the independent organization
certified under Section 39.151 shall contract with an entity
selected by the commission to act as the commission's cybersecurity
monitor to:
(1) manage a comprehensive cybersecurity outreach
program for monitored utilities;
(2) meet regularly with monitored utilities to discuss
emerging threats, best business practices, and training
opportunities;
(3) review self-assessments by monitored utilities of
cybersecurity efforts;
(4) research and develop best business practices
regarding cybersecurity; and
(5) report to the commission on monitored utility
cybersecurity preparedness.
(c) The independent organization certified under Section
39.151 shall provide to the cybersecurity monitor any access,
information, support, and cooperation that the commission
determines is necessary for the monitor to perform the functions
described by Subsection (b). The independent organization shall
use funds from the fee authorized by Section 39.151(e) to pay for
the cybersecurity monitor's activities.
(d) An electric utility, municipally owned utility, or
electric cooperative that operates solely outside the ERCOT power
region may elect to participate in the cybersecurity monitor
program or to discontinue participation. The commission shall
adopt rules establishing:
(1) procedures for an electric utility, municipally
owned utility, or electric cooperative to notify the commission,
the independent organization certified under Section 39.151, and
the cybersecurity monitor that the utility or cooperative elects to
participate or to discontinue participation; and
(2) a mechanism to require an electric utility,
municipally owned utility, or electric cooperative that elects to
participate to contribute to the costs incurred by the independent
organization under this section.
(e) The cybersecurity monitor shall operate under the
supervision and oversight of the commission.
(f) The commission shall adopt rules as necessary to
implement this section and may enforce the provisions of this
section in the manner provided by this title. This section does not
grant enforcement authority to the cybersecurity monitor or
authorize the commission to delegate the commission's enforcement
authority to the cybersecurity monitor. This section does not
grant enforcement authority to the commission beyond authority
explicitly provided for in this title.
(g) The staff of the cybersecurity monitor may communicate
with commission staff about any cybersecurity information without
restriction. Commission staff shall maintain the confidentiality
of the cybersecurity information. Notwithstanding any other law,
commission staff may not disclose information obtained under this
section in an open meeting or through a response to a public
information request.
(h) Information written, produced, collected, assembled, or
maintained under Subsection (b), (c), or (g) is confidential and
not subject to disclosure under Chapter 552, Government Code. A
governmental body is not required to conduct an open meeting under
Chapter 551, Government Code, to deliberate a matter described by
Subsection (b), (c), or (g).
SECTION 4. Section 39.402(a), Utilities Code, is amended to
read as follows:
(a) Until the date on which an electric utility subject to
this subchapter is authorized by the commission to implement
customer choice, the rates of the utility shall be regulated under
traditional cost of service regulation and the utility is subject
to all applicable regulatory authority prescribed by this subtitle
and Subtitle A, including Chapters 14, 32, 33, 36, and 37. Until
the date on which an electric utility subject to this subchapter
implements customer choice, the provisions of this chapter, other
than this subchapter, Sections 39.1516, 39.904, and 39.905, and the
provisions relating to the duty to obtain a permit from the Texas
Commission on Environmental Quality for an electric generating
facility and to reduce emissions from an electric generating
facility, shall not apply to that utility. That portion of any
commission order entered before September 1, 2001, to comply with
this subchapter shall be null and void.
SECTION 5. Section 39.452(d), Utilities Code, is amended to
read as follows:
(d) Until the date on which an electric utility subject to
this subchapter implements customer choice:
(1) the provisions of this chapter do not apply to that
electric utility, other than this subchapter, Sections 39.1516,
39.904, and 39.905, the provisions relating to the duty to obtain a
permit from the Texas Commission on Environmental Quality for an
electric generating facility and to reduce emissions from an
electric generating facility, and the provisions of Subchapter G
that pertain to the recovery and securitization of hurricane
reconstruction costs authorized by Sections 39.458-39.463; and
(2) the electric utility is not subject to a rate
freeze and, subject to the limitation provided by Subsection (b),
may file for rate changes under Chapter 36 and for approval of one
or more of the rate rider mechanisms authorized by Sections 39.454
and 39.455.
SECTION 6. Section 39.502(b), Utilities Code, is amended to
read as follows:
(b) Until the date on which an electric utility subject to
this subchapter implements customer choice, the provisions of this
chapter, other than this subchapter and Sections 39.1516, 39.904,
and 39.905, do not apply to that utility.
SECTION 7. Section 39.552(b), Utilities Code, is amended to
read as follows:
(b) Until the date on which an electric utility subject to
this subchapter implements customer choice, the provisions of this
chapter, other than this subchapter and Sections 39.1516, 39.904,
and 39.905, do not apply to that utility.
SECTION 8. Section 40.001(b), Utilities Code, is amended to
read as follows:
(b) Except as specifically provided in this subsection,
Chapter 39 does not apply to a river authority operating a steam
generating plant on or before January 1, 1999, or a corporation
authorized by Chapter 152, Water Code, or Section 32.053. A river
authority operating a steam generating plant on or before January
1, 1999, is subject to Sections 39.051(a)-(c), 39.108, 39.1516,
39.155, 39.157(e), and 39.203.
SECTION 9. Section 40.004, Utilities Code, is amended to
read as follows:
Sec. 40.004. JURISDICTION OF COMMISSION. Except as
specifically otherwise provided in this chapter, the commission has
jurisdiction over municipally owned utilities only for the
following purposes:
(1) to regulate wholesale transmission rates and
service, including terms of access, to the extent provided by
Subchapter A, Chapter 35;
(2) to regulate certification of retail service areas
to the extent provided by Chapter 37;
(3) to regulate rates on appeal under Subchapters D
and E, Chapter 33, subject to Section 40.051(c);
(4) to establish a code of conduct as provided by
Section 39.157(e) applicable to anticompetitive activities and to
affiliate activities limited to structurally unbundled affiliates
of municipally owned utilities, subject to Section 40.054;
(5) to establish terms and conditions for open access
to transmission and distribution facilities for municipally owned
utilities providing customer choice, as provided by Section 39.203;
(6) [to require collection of the nonbypassable fee
established under Section 39.903(b) and] to administer the
renewable energy credits program under Section 39.904(b) and the
natural gas energy credits program under Section 39.9044(b); [and]
(7) to require reports of municipally owned utility
operations only to the extent necessary to:
(A) enable the commission to determine the
aggregate load and energy requirements of the state and the
resources available to serve that load; or
(B) enable the commission to determine
information relating to market power as provided by Section 39.155;
and
(8) to evaluate and monitor the cybersecurity
preparedness of a municipally owned utility described by Section
39.1516(a)(3) or (4).
SECTION 10. Section 41.004, Utilities Code, is amended to
read as follows:
Sec. 41.004. JURISDICTION OF COMMISSION. Except as
specifically provided otherwise in this chapter, the commission has
jurisdiction over electric cooperatives only as follows:
(1) to regulate wholesale transmission rates and
service, including terms of access, to the extent provided in
Subchapter A, Chapter 35;
(2) to regulate certification to the extent provided
in Chapter 37;
(3) to establish a code of conduct as provided in
Section 39.157(e) subject to Section 41.054;
(4) to establish terms and conditions, but not rates,
for open access to distribution facilities for electric
cooperatives providing customer choice, as provided in Section
39.203; [and]
(5) to require reports of electric cooperative
operations only to the extent necessary to:
(A) ensure the public safety;
(B) enable the commission to satisfy its
responsibilities relating to electric cooperatives under this
chapter;
(C) enable the commission to determine the
aggregate electric load and energy requirements in the state and
the resources available to serve that load; or
(D) enable the commission to determine
information relating to market power as provided in Section 39.155;
and
(6) to evaluate and monitor the cybersecurity
preparedness of an electric cooperative described by Section
39.1516(a)(3) or (4).
SECTION 11. To the extent of any conflict, this Act prevails
over another Act of the 86th Legislature, Regular Session, 2019,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 12. This Act takes effect September 1, 2019.