88R13369 DIO-D By: Goodwin H.B. No. 3943 A BILL TO BE ENTITLED AN ACT relating to the auditing of an electric cooperative or municipally owned electric utility by an independent third party auditor after a power outage. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter C, Chapter 38, Utilities Code, is amended by adding Section 38.053 to read as follows: Sec. 38.053. ELECTRIC COOPERATIVE; AUDIT REQUIRED. (a) In this section, "extended power outage" means a power outage lasting five days or more. (b) The resiliency of the system of an electric cooperative must be audited by an independent third party auditor if an extended power outage affects 10 percent or more of its retail customers. (c) The board of directors of an electric cooperative shall contract with an independent third party auditor that meets the professional certifications established by the commission under Subsection (d) to perform the audit described by Subsection (b). (d) The commission by rule shall establish the professional certifications an independent third party auditor must have to perform the audit described by Subsection (b) and the information the audit must examine. (e) After an audit under this section is completed, the electric cooperative shall make the audit report publicly available. SECTION 2. Subchapter Z, Chapter 552, Local Government Code, is amended by adding Section 552.9021 to read as follows: Sec. 552.9021. MUNICIPALLY OWNED ELECTRIC UTILITY; AUDIT REQUIRED. (a) In this section: (1) "Extended power outage" means a power outage lasting five days or more. (2) "Retail customer" has the meaning assigned by Section 31.002, Utilities Code. (b) The resiliency of a municipally owned electric utility system must be audited by an independent third party auditor if an extended power outage affects 10 percent or more of its retail customers. (c) The governing body of the municipality that owns the utility shall contract with an independent third party auditor to perform the audit described by Subsection (b). (d) The independent third party auditor must have the professional certifications required under and perform the audit in the manner required under Section 38.053(d), Utilities Code. (e) After an audit under this section is completed, the municipality that owns the utility shall make the audit report publicly available. SECTION 3. This Act takes effect September 1, 2023.