| 1 | 1 | | 87R10667 CXP-D |
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| 2 | 2 | | By: Dominguez H.B. No. 2544 |
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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 Subsection (g) and adding Subsections (g-2) and (g-3) to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | (g) To maintain certification as an independent |
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| 14 | 14 | | organization under this section, an organization's governing body, |
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| 15 | 15 | | other than the ex officio members listed in this subsection, must be |
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| 16 | 16 | | composed of persons specified by this section who represent the |
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| 17 | 17 | | various geographic regions of this state, who have expertise in the |
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| 18 | 18 | | field of power generation or transmission and distribution, and who |
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| 19 | 19 | | are selected in accordance with formal bylaws or protocols of the |
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| 20 | 20 | | organization. The bylaws or protocols must be approved by the |
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| 21 | 21 | | commission and must reflect the input of the commission. The bylaws |
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| 22 | 22 | | must specify the process by which appropriate stakeholders elect |
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| 23 | 23 | | members and, for unaffiliated members, prescribe professional |
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| 24 | 24 | | qualifications for selection as a member. The bylaws must require |
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| 25 | 25 | | the use of a professional search firm to identify candidates for |
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| 26 | 26 | | membership of unaffiliated members. The process must allow for |
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| 27 | 27 | | commission input in identifying candidates. The governing body |
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| 28 | 28 | | must be composed of: |
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| 29 | 29 | | (1) the chairman of the commission as an ex officio |
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| 30 | 30 | | nonvoting member; |
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| 31 | 31 | | (2) the counsellor as an ex officio voting member |
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| 32 | 32 | | representing residential and small commercial consumer interests; |
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| 33 | 33 | | (3) the chief executive officer of the independent |
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| 34 | 34 | | organization as an ex officio voting member; |
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| 35 | 35 | | (4) six market participants elected by their |
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| 36 | 36 | | respective market segments to serve one-year terms, with: |
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| 37 | 37 | | (A) one representing independent generators; |
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| 38 | 38 | | (B) one representing investor-owned utilities; |
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| 39 | 39 | | (C) one representing power marketers; |
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| 40 | 40 | | (D) one representing retail electric providers; |
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| 41 | 41 | | (E) one representing municipally owned |
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| 42 | 42 | | utilities; and |
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| 43 | 43 | | (F) one representing electric cooperatives; |
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| 44 | 44 | | (5) one member representing industrial consumer |
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| 45 | 45 | | interests and elected by the industrial consumer market segment to |
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| 46 | 46 | | serve a one-year term; |
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| 47 | 47 | | (6) one member representing large commercial consumer |
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| 48 | 48 | | interests selected in accordance with the bylaws to serve a |
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| 49 | 49 | | one-year term; and |
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| 50 | 50 | | (7) five members unaffiliated with any market segment |
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| 51 | 51 | | and selected by the other members of the governing body to serve |
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| 52 | 52 | | three-year terms. |
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| 53 | 53 | | (g-2) To qualify to serve as a member of the governing body |
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| 54 | 54 | | under Subsection (g)(4), (5), (6), or (7), a person must be a |
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| 55 | 55 | | resident of this state. |
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| 56 | 56 | | (g-3) To maintain certification as an independent |
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| 57 | 57 | | organization under this section, an organization's chief executive |
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| 58 | 58 | | officer must be a resident of this state. |
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| 59 | 59 | | SECTION 2. (a) An independent organization certified under |
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| 60 | 60 | | Section 39.151, Utilities Code, by the Public Utility Commission of |
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| 61 | 61 | | Texas before September 1, 2021, shall hold elections and select new |
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| 62 | 62 | | members as needed to modify the organization's governing body to |
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| 63 | 63 | | comply with Section 39.151, Utilities Code, as amended by this Act, |
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| 64 | 64 | | as soon as practicable, but not later than September 1, 2022. |
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| 65 | 65 | | (b) An independent organization certified under Section |
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| 66 | 66 | | 39.151, Utilities Code, by the Public Utility Commission of Texas |
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| 67 | 67 | | before September 1, 2021, shall ensure that the chief executive |
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| 68 | 68 | | officer of the organization is a resident of this state as soon as |
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| 69 | 69 | | practicable, but not later than September 1, 2022. |
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| 70 | 70 | | (c) After September 1, 2022, the Public Utility Commission |
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| 71 | 71 | | of Texas may decertify an independent organization whose governing |
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| 72 | 72 | | body or chief executive officer does not comply with Section |
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| 73 | 73 | | 39.151, Utilities Code, as amended by this Act. |
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| 74 | 74 | | SECTION 3. This Act takes effect September 1, 2021. |
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