| 1 | 1 | | 88R13369 DIO-D |
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| 2 | 2 | | By: Goodwin H.B. No. 3943 |
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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 auditing of an electric cooperative or municipally |
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| 8 | 8 | | owned electric utility by an independent third party auditor after |
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| 9 | 9 | | a power outage. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter C, Chapter 38, Utilities Code, is |
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| 12 | 12 | | amended by adding Section 38.053 to read as follows: |
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| 13 | 13 | | Sec. 38.053. ELECTRIC COOPERATIVE; AUDIT REQUIRED. (a) In |
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| 14 | 14 | | this section, "extended power outage" means a power outage lasting |
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| 15 | 15 | | five days or more. |
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| 16 | 16 | | (b) The resiliency of the system of an electric cooperative |
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| 17 | 17 | | must be audited by an independent third party auditor if an extended |
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| 18 | 18 | | power outage affects 10 percent or more of its retail customers. |
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| 19 | 19 | | (c) The board of directors of an electric cooperative shall |
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| 20 | 20 | | contract with an independent third party auditor that meets the |
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| 21 | 21 | | professional certifications established by the commission under |
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| 22 | 22 | | Subsection (d) to perform the audit described by Subsection (b). |
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| 23 | 23 | | (d) The commission by rule shall establish the professional |
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| 24 | 24 | | certifications an independent third party auditor must have to |
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| 25 | 25 | | perform the audit described by Subsection (b) and the information |
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| 26 | 26 | | the audit must examine. |
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| 27 | 27 | | (e) After an audit under this section is completed, the |
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| 28 | 28 | | electric cooperative shall make the audit report publicly |
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| 29 | 29 | | available. |
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| 30 | 30 | | SECTION 2. Subchapter Z, Chapter 552, Local Government |
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| 31 | 31 | | Code, is amended by adding Section 552.9021 to read as follows: |
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| 32 | 32 | | Sec. 552.9021. MUNICIPALLY OWNED ELECTRIC UTILITY; AUDIT |
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| 33 | 33 | | REQUIRED. (a) In this section: |
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| 34 | 34 | | (1) "Extended power outage" means a power outage |
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| 35 | 35 | | lasting five days or more. |
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| 36 | 36 | | (2) "Retail customer" has the meaning assigned by |
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| 37 | 37 | | Section 31.002, Utilities Code. |
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| 38 | 38 | | (b) The resiliency of a municipally owned electric utility |
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| 39 | 39 | | system must be audited by an independent third party auditor if an |
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| 40 | 40 | | extended power outage affects 10 percent or more of its retail |
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| 41 | 41 | | customers. |
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| 42 | 42 | | (c) The governing body of the municipality that owns the |
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| 43 | 43 | | utility shall contract with an independent third party auditor to |
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| 44 | 44 | | perform the audit described by Subsection (b). |
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| 45 | 45 | | (d) The independent third party auditor must have the |
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| 46 | 46 | | professional certifications required under and perform the audit in |
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| 47 | 47 | | the manner required under Section 38.053(d), Utilities Code. |
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| 48 | 48 | | (e) After an audit under this section is completed, the |
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| 49 | 49 | | municipality that owns the utility shall make the audit report |
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| 50 | 50 | | publicly available. |
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| 51 | 51 | | SECTION 3. This Act takes effect September 1, 2023. |
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