By: Hancock S.R. No. 564
SENATE RESOLUTION
BE IT RESOLVED by the Senate of the State of Texas, 87th
Legislature, Regular Session, 2021, That Senate Rule 12.03 be
suspended in part as provided by Senate Rule 12.08 to enable the
conference committee appointed to resolve the differences on
Senate Bill 2 (the governance of the Public Utility Commission of
Texas, the Office of Public Utility Counsel, and an independent
organization certified to manage a power region) to consider and
take action on the following matters:
(1) Senate Rules 12.03(1), (3), and (4) are suspended to
permit the committee to amend text not in disagreement, to add
text on a matter not in disagreement, and to add text on a matter
not included in either the house or senate version of the bill in
proposed SECTION 3 of the bill, in amended Sections 39.151(g) and
(g-1), Utilities Code, and added Sections 39.151(g-2), (g-3),
and (g-4), Utilities Code, to read as follows:
(g) To maintain certification as an independent
organization for the ERCOT power region under this section, an
organization's governing body must be composed of persons
selected by the ERCOT board selection committee [specified by
this section and selected in accordance with formal bylaws or
protocols of the organization].
(g-1) The independent organization's 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 that every member of the
governing body be a resident of this state and must prohibit a
legislator from serving as a member [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 nonvoting [voting] member; and
(4) eight members selected by the selection
committee under Section 39.1513 with executive-level experience
in any of the following professions:
(A) finance;
(B) business;
(C) engineering, including electrical
engineering;
(D) trading;
(E) risk management;
(F) law; or
(G) electric market design [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-2) Members [(g-1) The presiding officer] of the
governing body are entitled to receive a salary for their service
[must be one of the members described by Subsection (g)(7)].
(g-3) A person does not qualify for selection as a member
of the governing body of an independent organization for the
ERCOT power region if the person has a fiduciary duty or assets in
the electricity market for that region.
(g-4) To maintain certification as an independent
organization under this section, the organization's governing
body may not include more than two members who are employed by an
institution of higher education, as defined by Section 61.003,
Education Code, in a professorial role.
Explanation: This change is necessary to provide for the
composition of the governing body of an independent organization
certified under Section 39.151, Utilities Code, for the Electric
Reliability Council of Texas power region and to establish
requirements relating to the eligibility and selection of
members of the governing body.
(2) Senate Rule 12.03(2) is suspended to permit the
committee to omit text not in disagreement in SECTION 3 of the
senate engrossment of Senate Bill 2 and the corresponding bill as
the bill was amended by the house in added Section 39.151(g-2),
Utilities Code. The omitted text reads:
(g-2) A person does not qualify for appointment as a
member of the governing body of an independent organization under
Subsection (g)(3) or (7) if the person is required to register as
a lobbyist under Chapter 305, Government Code. In making an
appointment under Subsection (g)(3) or (7), the governor:
(1) shall give preference to a person who has
executive-level business experience representing a range of
industries; and
(2) may consider a person recommended by the
legislature.
(g-2) A person does not qualify for selection as a member
of the governing body of an independent organization under
Subsection (g)(3) or (7) if the person is required to register as
a lobbyist under Chapter 305, Government Code. In making a
selection under Subsection (g)(3) or (7), the members of the
governing body shall give preference to a person who has
executive-level business experience representing a range of
industries.
Explanation: The change is necessary to omit the
qualification and selection requirements.
(3) Senate Rule 12.03(2) is suspended to permit the
committee to omit text not in disagreement in SECTION 3 of the
senate engrossment of Senate Bill 2 and the corresponding bill as
the bill was amended by the house in added Section 39.151(g-3),
Utilities Code. The omitted text reads:
(g-3) Members of the governing body of an independent
organization certified under this section must serve staggered
terms. A member described by Subsection (g)(4) or (5) must serve
a term that expires in an even-numbered year. A member described
by Subsection (g)(6) or (7) must serve a term that expires in an
odd-numbered year. As soon as practicable after the date a member
of the governing body's term expires, the appropriate authority
must appoint or arrange for the election of a replacement in the
same manner as the original appointment or election. If a vacancy
occurs on the governing body, the appropriate authority must
appoint or arrange for the election of a successor in the same
manner as the original appointment or election to serve for the
remainder of the unexpired term.
Explanation: The change is necessary to omit the term and
vacancy requirements.
(4) Senate Rule 12.03(4) is suspended to permit the
committee to add text on a matter not included in either the house
or senate version of the bill by adding the following new SECTION
to the bill:
SECTION 4. Subchapter D, Chapter 39, Utilities Code, is
amended by adding Section 39.1513 to read as follows:
Sec. 39.1513. ERCOT BOARD SELECTION COMMITTEE. (a) The
ERCOT board selection committee is composed of:
(1) one member appointed by the governor;
(2) one member appointed by the lieutenant
governor; and
(3) one member appointed by the speaker of the house
of representatives.
(b) A person may not be appointed as a member of the
committee unless the person is a resident of this state.
(c) A member of the committee is not entitled to
compensation for serving as a member but is entitled to
reimbursement for actual and necessary expenses incurred in
performing the official duties of office.
(d) The committee shall select members eligible under
Section 39.151 to serve on the governing body of an independent
organization certified under that section for the ERCOT power
region and shall designate the chair and vice chair of the
governing body from those members.
(e) The ERCOT board selection committee shall retain an
outside consulting firm to help select members of the governing
body under Subsection (d).
Explanation: The addition is necessary to provide for the
creation of a committee to select the members of a governing body
of an independent organization certified under Section 39.151,
Utilities Code, for the Electric Reliability Council of Texas
power region.
(5) Senate Rule 12.03(2) is suspended to permit the
committee to omit text not in disagreement in SECTION 4 of the
senate engrossment of Senate Bill 2 and the corresponding bill as
the bill was amended by the house that would require an
independent organization certified by the Public Utility
Commission of Texas under Section 39.151, Utilities Code, to
modify the organization to comply with Section 39.151, Utilities
Code, as amended by the bill, not later than September 1, 2021.
The omitted language reads: "not later than September 1, 2021".
Explanation: The omission is necessary to provide
sufficient time for the ERCOT Board Selection Committee to be
formed and for the committee to select members of the governing
body of the independent organization certified under Section
39.151, Utilities Code, for the Electric Reliability Council of
Texas power region.
_______________________________
President of the Senate
I hereby certify that the
above Resolution was adopted by
the Senate on May 30, 2021, by
the following vote: Yeas 27,
Nays 4.
_______________________________
Secretary of the Senate