87R10622 CXP-D
By: Price H.B. No. 2467
A BILL TO BE ENTITLED
AN ACT
relating to the governing body and executive management team 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 Subsections (g) and (g-1) and adding Subsections (g-2),
(g-3), and (g-4) to read as follows:
(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 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 representing the public appointed by
the governor to serve four-year terms who are unaffiliated with any
market segment and who have no associations, including familial or
professional associations, with energy producers or providers of
any kind, with:
(A) one member who resides in a county with a
population of less than 75,000;
(B) one member who resides in a county with a
population of at least 75,000 but less than 250,000; and
(C) three members who reside in a county with a
population of at least 250,000 [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 presiding officer and vice presiding officer of
the governing body must be one of the members described by
Subsection (g)(7).
(g-2) Members of the organization's governing body required
by Subsections (g)(4), (5), and (6) must be 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.
(g-3) To qualify to serve as a member of the governing body
under Subsection (g)(4), (5), (6), or (7), a person must have a
primary residence within the geographic area of the power region
served by the independent organization.
(g-4) To maintain certification as an independent
organization under this section, an organization's chief executive
officer and each member of the organization's executive management
team must have a primary residence within the geographic area of the
power region served by the independent organization.
SECTION 2. (a) Not later than December 1, 2021, the
governor shall appoint members to the governing body of an
independent organization certified under Section 39.151, Utilities
Code, by the Public Utility Commission of Texas before September 1,
2021, to comply with Section 39.151, Utilities Code, as amended by
this Act.
(b) The two members of the governing body of an independent
organization certified under Section 39.151, Utilities Code, by the
Public Utility Commission of Texas before September 1, 2021, who
are initially appointed under Sections 39.151(g)(7)(A) and (B),
Utilities Code, as amended by this Act, serve terms expiring
February 1, 2025, and the three members who are initially appointed
under Section 39.151(g)(7)(C), Utilities Code, as amended by this
Act, serve terms expiring February 1, 2023.
(c) 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 January 31, 2022.
(d) 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 and executive management team of the organization comply
with Section 39.151, Utilities Code, as amended by this Act, as soon
as practicable, but not later than January 31, 2022.
(e) After January 31, 2022, the Public Utility Commission of
Texas may decertify an independent organization whose governing
body, executive management team, 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.