87R10687 CXP-D
By: Metcalf H.B. No. 2522
A BILL TO BE ENTITLED
AN ACT
relating to the governing body 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) The commission may certify an independent organization
under this section only if the [To maintain certification as an
independent organization under this section, an] organization's
governing body is [must be] composed of 15 members appointed as
follows [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) five members appointed by the governor [the
chairman of the commission as an ex officio nonvoting member];
(2) five members appointed by the lieutenant governor
[the counsellor as an ex officio voting member representing
residential and small commercial consumer interests]; and
(3) five members appointed by the speaker of the house
of representatives [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 unaffiliated with any market segment
and selected by the other members of the governing body to serve
three-year terms].
(g-1) The governing body of an independent organization
certified under this section shall elect a presiding officer from
among its members [of the governing body must be one of the members
described by Subsection (g)(7)].
(g-2) Members of the governing body of an independent
organization certified under this section serve staggered terms of
two years, with seven members' terms expiring February 1 of each
odd-numbered year and eight members' terms expiring February 1 of
each even-numbered year. Not later than the 30th day after the date
a member of the governing body's term expires, the appropriate
appointing authority shall appoint a replacement in the same manner
as the original appointment. If a vacancy occurs on the governing
body, the appropriate appointing authority shall appoint a
successor in the same manner as the original appointment to serve
for the remainder of the unexpired term. The appropriate
appointing authority shall appoint the successor not later than the
30th day after the date the vacancy occurs.
(g-3) To qualify for appointment as a member of the
governing body under Subsection (g), a person must be a resident of
this state.
(g-4) To maintain certification as an independent
organization under this section, an organization's chief executive
officer must be a resident of this state.
SECTION 2. (a) Not later than December 1, 2021, the
governor, lieutenant governor, and speaker of the house of
representatives shall comply with Section 39.151, Utilities Code,
as amended by this Act, by appointing 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 establish staggered terms, the governor
shall designate seven initial appointees to serve terms expiring
February 1 of the next odd-numbered year and eight initial
appointees to serve terms expiring February 1 of the next
even-numbered year.
(b) 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 of the organization is a resident of this state as soon as
practicable, but not later than September 1, 2022.
(c) After September 1, 2022, the Public Utility Commission
of Texas may decertify an independent organization whose governing
body 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.