Texas 2021 - 87th Regular

Texas House Bill HB10 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Paddie, et al. (Senate Sponsor - Schwertner) H.B. No. 10
2		-	(In the Senate - Received from the House March 31, 2021;
3		-	April 8, 2021, read first time and referred to Committee on
4		-	Jurisprudence; May 22, 2021, reported adversely, with favorable
5		-	Committee Substitute by the following vote: Yeas 5, Nays 0;
6		-	May 22, 2021, sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR H.B. No. 10 By: Hinojosa
	1	+	87R16124 CXP-F
	2	+	By: Paddie, Hernandez, et al. H.B. No. 10
9	3
10	4
11	5		A BILL TO BE ENTITLED
12	6		AN ACT
13	7		relating to the governance of the Public Utility Commission of
14	8		Texas, the Office of Public Utility Counsel, and an independent
15	9		organization certified to manage a power region.
16	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17		-	SECTION 1. Section 12.~~051~~(a), Utilities Code, is amended to
	11	+	SECTION 1. Section 12.052(a), Utilities Code, is amended to
18	12		read as follows:
19		-	(a) The commission is composed of five [three]
20		-	commissioners appointed by the governor with the advice and consent
21		-	of the senate.
22		-	SECTION 2. Section 12.053, Utilities Code, is amended by
23		-	amending Subsections (a) and (b) and adding Subsection (a-1) to
24		-	read as follows:
25		-	(a) To be eligible for appointment, a commissioner must:
26		-	(1) be a qualified voter;
27		-	(2) be a citizen of the United States;
28		-	(3) be a resident of this state;
29		-	(4) be a competent and experienced administrator;
30		-	[(4) be well informed and qualified in the field of
31		-	public utilities and utility regulation;] and
32		-	(5) have at least five years of experience:
33		-	(A) in the administration of business or
34		-	government; or
35		-	(B) as a practicing attorney, [or] certified
36		-	public accountant, or professional engineer.
37		-	(a-1) At least two commissioners must be well informed and
38		-	qualified in the field of public utilities and utility regulation.
39		-	(b) A person is not eligible for appointment as a
40		-	commissioner if the person:
41		-	(1) at any time during the one year [two years]
42		-	preceding appointment:
43		-	(A) personally served as an officer, director,
44		-	owner, employee, partner, or legal representative of a public
45		-	utility regulated by the commission or of an affiliate or direct
46		-	competitor of a public utility regulated by the commission; [or]
47		-	(B) owned or controlled, directly or indirectly,
48		-	more than a 10 percent interest in a public utility regulated by the
49		-	commission or in an affiliate or direct competitor of a public
50		-	utility regulated by the commission; or
51		-	(C) served as an executive officer listed under
52		-	Section 1, Article IV, Texas Constitution, other than the secretary
53		-	of state, or a member of the legislature; or
54		-	(2) is not qualified to serve under Section 12.151,
55		-	12.152, or 12.153.
56		-	SECTION 3. Section 13.022(a), Utilities Code, is amended to
	13	+	(a) The governor shall designate a commissioner as the
	14	+	presiding officer. The commissioner designated as the presiding
	15	+	officer must be a resident of this state.
	16	+	SECTION 2. Section 13.022(a), Utilities Code, is amended to
57	17		read as follows:
58	18		(a) The counsellor must:
59	19		(1) be licensed to practice law in this state and a
60	20		resident of this state;
61	21		(2) have demonstrated a strong commitment to and
62	22		involvement in efforts to safeguard the rights of the public; and
63	23		(3) possess the knowledge and experience necessary to
64	24		practice effectively in utility proceedings.
65		-	SECTION 4. Section 39.151, Utilities Code, is amended by
66		-	amending Subsections (d), (g), and (g-1) and adding Subsections
67		-	(g-2), (g-3), and (g-4) to read as follows:
68		-	(d) The commission shall adopt and enforce rules relating to
69		-	the reliability of the regional electrical network and accounting
70		-	for the production and delivery of electricity among generators and
71		-	all other market participants, or may delegate to an independent
72		-	organization responsibilities for adopting [establishing] or
73		-	enforcing such rules. Rules [Any such rules] adopted by an
74		-	independent organization and [any] enforcement actions taken by the
75		-	organization under delegated authority from the commission are
76		-	subject to commission oversight and review and may not take effect
77		-	before receiving commission approval. An independent organization
78		-	certified by the commission is directly responsible and accountable
79		-	to the commission. The commission has complete authority to
80		-	oversee and investigate the organization's finances, budget, and
81		-	operations as necessary to ensure the organization's
82		-	accountability and to ensure that the organization adequately
83		-	performs the organization's functions and duties. The organization
84		-	shall fully cooperate with the commission in the commission's
85		-	oversight and investigatory functions. The commission may take
86		-	appropriate action against an organization that does not adequately
87		-	perform the organization's functions or duties or does not comply
88		-	with this section, including decertifying the organization or
89		-	assessing an administrative penalty against the organization. The
90		-	commission by rule shall adopt procedures governing
91		-	decertification of an independent organization, selecting and
92		-	certifying a successor organization, and transferring assets to the
93		-	successor organization to ensure continuity of operations in the
94		-	region. The commission may not implement, by order or by rule, a
95		-	requirement that is contrary to an applicable federal law or rule.
	25	+	SECTION 3. Section 39.151, Utilities Code, is amended by
	26	+	amending Subsections (g) and (g-1) and adding Subsections (g-2),
	27	+	(g-3), (g-4), and (g-5) to read as follows:
96	28		(g) To maintain certification as an independent
97	29		organization under this section, an organization's governing body
98	30		must be composed of persons specified by this section and selected
99	31		in accordance with formal bylaws or protocols of the organization.
100	32		The bylaws or protocols must be approved by the commission and must
101	33		reflect the input of the commission. The bylaws must specify the
102		-	process by which appropriate stakeholders elect members and, for
	34	+	process by which appropriate stakeholders elect members [and, for
103	35		unaffiliated members, prescribe professional qualifications for
104		-	selection as a member. The bylaws must require that every member of
105		-	the governing body be a resident of this state and prohibit a
106		-	legislator from serving as a member. The bylaws may require the use
107		-	of a professional search firm to identify candidates for
108		-	[membership of unaffiliated] members described by Subdivisions
109		-	(4), (5), and (6). The process must allow for commission input in
110		-	identifying candidates. The governing body must be composed of:
	36	+	selection as a member. The bylaws must require the use of a
	37	+	professional search firm to identify candidates for membership of
	38	+	unaffiliated members]. The process must allow for commission input
	39	+	in identifying candidates. The governing body must be composed of:
111	40		(1) the chairman of the commission as an ex officio
112	41		nonvoting member;
113	42		(2) the counsellor as an ex officio voting member
114	43		representing residential and small commercial consumer interests;
115	44		(3) the chief executive officer of the independent
116		-	organization as an ex officio voting member, who must be appointed
117		-	by the governor with the advice and consent of the senate;
	45	+	organization as an ex officio voting member;
118	46		(4) six market participants elected by their
119		-	respective market segments to serve two-year [one-year] terms,
120		-	with:
121		-	(A) one representing independent generators,
122		-	elected by a majority vote of the members of this market segment who
123		-	each own and control five percent or more of the installed
124		-	generation capacity located in the power region;
	47	+	respective market segments to serve one-year terms, with:
	48	+	(A) one representing independent generators;
125	49		(B) one representing investor-owned utilities;
126	50		(C) one representing power marketers;
127		-	(D) one representing retail electric providers
128		-	who may not be affiliated with an independent generator;
	51	+	(D) one representing retail electric providers;
129	52		(E) one representing municipally owned
130	53		utilities; and
131	54		(F) one representing electric cooperatives;
132	55		(5) one member representing industrial consumer
133	56		interests and elected by the industrial consumer market segment to
134		-	serve a ~~two~~-year ~~[one-year]~~ term;
	57	+	serve a one-year term;
135	58		(6) one member representing large commercial consumer
136	59		interests selected in accordance with the bylaws to serve a
137		-	two-year [one-year] term; and
138		-	(7) five members unaffiliated with any market segment
139		-	who must be appointed by the governor with the advice and consent of
140		-	the senate [and selected by the other members of the governing body]
141		-	to serve two-year [three-year] terms.
142		-	(g-1) The bylaws of an independent organization must
143		-	require that the [The] presiding officer and vice presiding officer
144		-	of the governing body must be:
145		-	(1) [one of the] members described by Subsection
146		-	(g)(7); and
147		-	(2) selected by the governor with the advice and
148		-	consent of the senate.
149		-	(g-2) A person does not qualify for appointment as a member
150		-	of the governing body of an independent organization under
151		-	Subsection (g)(3) or (7) if the person is required to register as a
152		-	lobbyist under Chapter 305, Government Code. In making an
153		-	appointment under Subsection (g)(3) or (7), the governor:
154		-	(1) shall give preference to a person who has
155		-	executive-level business experience representing a range of
156		-	industries; and
157		-	(2) may consider a person recommended by the
158		-	legislature.
159		-	(g-3) Members of the governing body of an independent
160		-	organization certified under this section must serve staggered
161		-	terms. A member described by Subsection (g)(4) or (5) must serve a
162		-	term that expires in an even-numbered year. A member described by
163		-	Subsection (g)(6) or (7) must serve a term that expires in an
164		-	odd-numbered year. As soon as practicable after the date a member
165		-	of the governing body's term expires, the appropriate authority
166		-	must appoint or arrange for the election of a replacement in the
167		-	same manner as the original appointment or election. If a vacancy
168		-	occurs on the governing body, the appropriate authority must
169		-	appoint or arrange for the election of a successor in the same
170		-	manner as the original appointment or election to serve for the
171		-	remainder of the unexpired term.
	60	+	one-year term; [and]
	61	+	(7) three members appointed by the governor, at least
	62	+	one of whom must represent residential consumer interests;
	63	+	(8) one member appointed by the lieutenant governor;
	64	+	and
	65	+	(9) one member appointed by the speaker of the house of
	66	+	representatives [five members unaffiliated with any market segment
	67	+	and selected by the other members of the governing body to serve
	68	+	three-year terms].
	69	+	(g-1) The governor shall designate the presiding officer of
	70	+	the independent organization's governing body [must be one of the
	71	+	members described by Subsection (g)(7)].
	72	+	(g-2) Members of the governing body of an independent
	73	+	organization certified under this section appointed under
	74	+	Subsections (g)(7), (8), and (9) serve staggered terms of two
	75	+	years, with three members' terms expiring February 1 of each
	76	+	odd-numbered year and two members' terms expiring February 1 of
	77	+	each even-numbered year. Not later than the 30th day after the date
	78	+	a member of the governing body's term expires, the appropriate
	79	+	appointing authority shall appoint a replacement in the same manner
	80	+	as the original appointment. If a vacancy occurs on the governing
	81	+	body, the appropriate appointing authority shall appoint a
	82	+	successor in the same manner as the original appointment to serve
	83	+	for the remainder of the unexpired term. The appropriate
	84	+	appointing authority shall appoint the successor not later than the
	85	+	30th day after the date the vacancy occurs.
	86	+	(g-3) To qualify as a member of the governing body under
	87	+	Subsection (g)(4), (5), (6), (7), (8), or (9), a person must be a
	88	+	resident of this state.
172	89		(g-4) To maintain certification as an independent
173		-	organization under this section, the organization's governing body
174		-	must establish and implement a formal process for adopting new
175		-	protocols or revisions to existing protocols. The process must
176		-	require that new or revised protocols may not take effect until the
177		-	commission approves a market impact statement describing the new or
178		-	revised protocols.
179		-	SECTION 5. In making appointments of commissioners to the
180		-	Public Utility Commission of Texas under Section 12.051, Utilities
181		-	Code, as amended by this Act, the governor shall assign staggered
182		-	terms to the commissioners appointed to fill vacancies and to the
183		-	commissioners appointed to new positions to ensure that the
184		-	requirements of Section 30a, Article XVI, Texas Constitution, are
185		-	met.
186		-	SECTION 6. An independent organization certified under
	90	+	organization under this section, an organization's chief executive
	91	+	officer must be a resident of this state.
	92	+	(g-5) A member of the governing body is not entitled to
	93	+	compensation, but is entitled to reimbursement for travel and other
	94	+	necessary expenses related to the activities of the independent
	95	+	organization as provided by the General Appropriations Act.
	96	+	SECTION 4. (a) As soon as practicable after the effective
	97	+	date of this Act, the governor, lieutenant governor, and speaker of
	98	+	the house of representatives shall comply with Section 39.151,
	99	+	Utilities Code, as amended by this Act, by appointing members to the
	100	+	governing body of an independent organization certified under
187	101		Section 39.151, Utilities Code, by the Public Utility Commission of
188		-	Texas before September 1, 2021, shall modify the organization to
189		-	comply with Section 39.151, Utilities Code, as amended by this Act,
190		-	not later than September 1, 2021. After September 1, 2021, the
191		-	Public Utility Commission of Texas may decertify an independent
192		-	organization that does not comply with Section 39.151, Utilities
193		-	Code, as amended by this Act.
194		-	SECTION 7. This Act takes effect immediately if it receives
	102	+	Texas before September 1, 2021. To establish staggered terms, the
	103	+	governor shall designate three initial appointees to serve terms
	104	+	expiring February 1 of the next odd-numbered year and two initial
	105	+	appointees to serve terms expiring February 1 of the next
	106	+	even-numbered year.
	107	+	(b) An independent organization certified under Section
	108	+	39.151, Utilities Code, by the Public Utility Commission of Texas
	109	+	before September 1, 2021, shall ensure that the chief executive
	110	+	officer of the organization is a resident of this state as soon as
	111	+	practicable, but not later than September 1, 2022.
	112	+	(c) After September 1, 2022, the Public Utility Commission
	113	+	of Texas may decertify an independent organization whose governing
	114	+	body or chief executive officer does not comply with Section
	115	+	39.151, Utilities Code, as amended by this Act.
	116	+	SECTION 5. This Act takes effect immediately if it receives
195	117		a vote of two-thirds of all the members elected to each house, as
196	118		provided by Section 39, Article III, Texas Constitution. If this
197	119		Act does not receive the vote necessary for immediate effect, this
198	120		Act takes effect September 1, 2021.
199		-	* * * * *