1 | 1 | | 87R10687 CXP-D |
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2 | 2 | | By: Metcalf H.B. No. 2522 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the governing body of the independent organization |
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8 | 8 | | certified to manage the ERCOT power region. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Section 39.151, Utilities Code, is amended by |
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11 | 11 | | amending Subsections (g) and (g-1) and adding Subsections (g-2), |
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12 | 12 | | (g-3), and (g-4) to read as follows: |
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13 | 13 | | (g) The commission may certify an independent organization |
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14 | 14 | | under this section only if the [To maintain certification as an |
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15 | 15 | | independent organization under this section, an] organization's |
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16 | 16 | | governing body is [must be] composed of 15 members appointed as |
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17 | 17 | | follows [persons specified by this section and selected in |
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18 | 18 | | accordance with formal bylaws or protocols of the organization. |
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19 | 19 | | The bylaws or protocols must be approved by the commission and must |
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20 | 20 | | reflect the input of the commission. The bylaws must specify the |
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21 | 21 | | process by which appropriate stakeholders elect members and, for |
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22 | 22 | | unaffiliated members, prescribe professional qualifications for |
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23 | 23 | | selection as a member. The bylaws must require the use of a |
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24 | 24 | | professional search firm to identify candidates for membership of |
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25 | 25 | | unaffiliated members. The process must allow for commission input |
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26 | 26 | | in identifying candidates. The governing body must be composed |
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27 | 27 | | of]: |
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28 | 28 | | (1) five members appointed by the governor [the |
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29 | 29 | | chairman of the commission as an ex officio nonvoting member]; |
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30 | 30 | | (2) five members appointed by the lieutenant governor |
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31 | 31 | | [the counsellor as an ex officio voting member representing |
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32 | 32 | | residential and small commercial consumer interests]; and |
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33 | 33 | | (3) five members appointed by the speaker of the house |
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34 | 34 | | of representatives [the chief executive officer of the independent |
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35 | 35 | | organization as an ex officio voting member; |
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36 | 36 | | [(4) six market participants elected by their |
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37 | 37 | | respective market segments to serve one-year terms, with: |
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38 | 38 | | [(A) one representing independent generators; |
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39 | 39 | | [(B) one representing investor-owned utilities; |
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40 | 40 | | [(C) one representing power marketers; |
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41 | 41 | | [(D) one representing retail electric providers; |
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42 | 42 | | [(E) one representing municipally owned |
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43 | 43 | | utilities; and |
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44 | 44 | | [(F) one representing electric cooperatives; |
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45 | 45 | | [(5) one member representing industrial consumer |
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46 | 46 | | interests and elected by the industrial consumer market segment to |
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47 | 47 | | serve a one-year term; |
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48 | 48 | | [(6) one member representing large commercial |
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49 | 49 | | consumer interests selected in accordance with the bylaws to serve |
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50 | 50 | | a one-year term; and |
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51 | 51 | | [(7) five members unaffiliated with any market segment |
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52 | 52 | | and selected by the other members of the governing body to serve |
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53 | 53 | | three-year terms]. |
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54 | 54 | | (g-1) The governing body of an independent organization |
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55 | 55 | | certified under this section shall elect a presiding officer from |
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56 | 56 | | among its members [of the governing body must be one of the members |
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57 | 57 | | described by Subsection (g)(7)]. |
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58 | 58 | | (g-2) Members of the governing body of an independent |
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59 | 59 | | organization certified under this section serve staggered terms of |
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60 | 60 | | two years, with seven members' terms expiring February 1 of each |
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61 | 61 | | odd-numbered year and eight members' terms expiring February 1 of |
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62 | 62 | | each even-numbered year. Not later than the 30th day after the date |
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63 | 63 | | a member of the governing body's term expires, the appropriate |
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64 | 64 | | appointing authority shall appoint a replacement in the same manner |
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65 | 65 | | as the original appointment. If a vacancy occurs on the governing |
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66 | 66 | | body, the appropriate appointing authority shall appoint a |
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67 | 67 | | successor in the same manner as the original appointment to serve |
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68 | 68 | | for the remainder of the unexpired term. The appropriate |
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69 | 69 | | appointing authority shall appoint the successor not later than the |
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70 | 70 | | 30th day after the date the vacancy occurs. |
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71 | 71 | | (g-3) To qualify for appointment as a member of the |
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72 | 72 | | governing body under Subsection (g), a person must be a resident of |
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73 | 73 | | this state. |
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74 | 74 | | (g-4) To maintain certification as an independent |
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75 | 75 | | organization under this section, an organization's chief executive |
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76 | 76 | | officer must be a resident of this state. |
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77 | 77 | | SECTION 2. (a) Not later than December 1, 2021, the |
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78 | 78 | | governor, lieutenant governor, and speaker of the house of |
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79 | 79 | | representatives shall comply with Section 39.151, Utilities Code, |
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80 | 80 | | as amended by this Act, by appointing members to the governing body |
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81 | 81 | | of an independent organization certified under Section 39.151, |
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82 | 82 | | Utilities Code, by the Public Utility Commission of Texas before |
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83 | 83 | | September 1, 2021. To establish staggered terms, the governor |
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84 | 84 | | shall designate seven initial appointees to serve terms expiring |
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85 | 85 | | February 1 of the next odd-numbered year and eight initial |
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86 | 86 | | appointees to serve terms expiring February 1 of the next |
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87 | 87 | | even-numbered year. |
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88 | 88 | | (b) An independent organization certified under Section |
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89 | 89 | | 39.151, Utilities Code, by the Public Utility Commission of Texas |
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90 | 90 | | before September 1, 2021, shall ensure that the chief executive |
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91 | 91 | | officer of the organization is a resident of this state as soon as |
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92 | 92 | | practicable, but not later than September 1, 2022. |
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93 | 93 | | (c) After September 1, 2022, the Public Utility Commission |
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94 | 94 | | of Texas may decertify an independent organization whose governing |
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95 | 95 | | body or chief executive officer does not comply with Section |
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96 | 96 | | 39.151, Utilities Code, as amended by this Act. |
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97 | 97 | | SECTION 3. This Act takes effect September 1, 2021. |
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