1 | 1 | | 88R9643 CXP-D |
---|
2 | 2 | | By: Schwertner, et al. S.B. No. 1368 |
---|
3 | 3 | | |
---|
4 | 4 | | |
---|
5 | 5 | | A BILL TO BE ENTITLED |
---|
6 | 6 | | AN ACT |
---|
7 | 7 | | relating to the continuation and functions of the Public Utility |
---|
8 | 8 | | Commission of Texas and the Office of Public Utility Counsel, and |
---|
9 | 9 | | the functions of the independent organization certified for the |
---|
10 | 10 | | ERCOT power region. |
---|
11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
---|
12 | 12 | | SECTION 1. Section 12.005, Utilities Code, is amended to |
---|
13 | 13 | | read as follows: |
---|
14 | 14 | | Sec. 12.005. APPLICATION OF SUNSET ACT. The Public Utility |
---|
15 | 15 | | Commission of Texas is subject to Chapter 325, Government Code |
---|
16 | 16 | | (Texas Sunset Act). Unless continued in existence as provided by |
---|
17 | 17 | | that chapter or by Chapter 39, the commission is abolished [and this |
---|
18 | 18 | | title expires] September 1, 2029 [2023]. |
---|
19 | 19 | | SECTION 2. Section 12.059, Utilities Code, is amended to |
---|
20 | 20 | | read as follows: |
---|
21 | 21 | | Sec. 12.059. TRAINING PROGRAM FOR COMMISSIONERS. (a) A |
---|
22 | 22 | | person who is appointed to and qualifies for office as a member of |
---|
23 | 23 | | the commission may not vote, deliberate, or be counted as a member |
---|
24 | 24 | | in attendance at a meeting of the commission until the person |
---|
25 | 25 | | completes a [Before a commissioner may assume the commissioner's |
---|
26 | 26 | | duties and before the commissioner may be confirmed by the senate, |
---|
27 | 27 | | the commissioner must complete at least one course of the] training |
---|
28 | 28 | | program that complies with [established under] this section. |
---|
29 | 29 | | (b) The [A] training program must [established under this |
---|
30 | 30 | | section shall] provide the person with information [to the |
---|
31 | 31 | | commissioner] regarding: |
---|
32 | 32 | | (1) the law governing [enabling legislation that |
---|
33 | 33 | | created the] commission operations [and its policymaking body to |
---|
34 | 34 | | which the commissioner is appointed to serve]; |
---|
35 | 35 | | (2) the programs, functions, rules, and budget of |
---|
36 | 36 | | [operated by] the commission; |
---|
37 | 37 | | (3) the scope [role and functions] of and limitations |
---|
38 | 38 | | on the rulemaking authority of the commission; |
---|
39 | 39 | | (4) the results [rules] of the most recent formal |
---|
40 | 40 | | audit of the commission [with an emphasis on the rules that relate |
---|
41 | 41 | | to disciplinary and investigatory authority]; |
---|
42 | 42 | | (5) the requirements of: |
---|
43 | 43 | | (A) laws relating to open meetings, public |
---|
44 | 44 | | information, administrative procedure, and disclosing conflicts of |
---|
45 | 45 | | interest; and |
---|
46 | 46 | | (B) other laws applicable to members of a state |
---|
47 | 47 | | policy-making body in performing their duties [current budget for |
---|
48 | 48 | | the commission]; and |
---|
49 | 49 | | (6) [the results of the most recent formal audit of the |
---|
50 | 50 | | commission; |
---|
51 | 51 | | [(7) the requirements of Chapters 551, 552, and 2001, |
---|
52 | 52 | | Government Code; |
---|
53 | 53 | | [(8) the requirements of the conflict of interest laws |
---|
54 | 54 | | and other laws relating to public officials; and |
---|
55 | 55 | | [(9)] any applicable ethics policies adopted by the |
---|
56 | 56 | | commission or the Texas Ethics Commission. |
---|
57 | 57 | | (c) A person [who is] appointed to the commission is |
---|
58 | 58 | | entitled to reimbursement, as provided by the General |
---|
59 | 59 | | Appropriations Act, for the travel expenses incurred in attending |
---|
60 | 60 | | the training program regardless of whether the attendance at the |
---|
61 | 61 | | program occurs before or after the person qualifies for office. |
---|
62 | 62 | | (d) The executive director of the commission shall create a |
---|
63 | 63 | | training manual that includes the information required by |
---|
64 | 64 | | Subsection (b). The executive director shall distribute a copy of |
---|
65 | 65 | | the training manual annually to each member of the commission. Each |
---|
66 | 66 | | member of the commission shall sign and submit to the executive |
---|
67 | 67 | | director a statement acknowledging that the member received and has |
---|
68 | 68 | | reviewed the training manual. |
---|
69 | 69 | | SECTION 3. Section 12.202, Utilities Code, is amended by |
---|
70 | 70 | | adding Subsections (a-1) and (a-2) to read as follows: |
---|
71 | 71 | | (a-1) The policies adopted under this section must require |
---|
72 | 72 | | the agenda for each regular commission meeting to include public |
---|
73 | 73 | | testimony as a meeting agenda item and allow members of the public |
---|
74 | 74 | | to comment on: |
---|
75 | 75 | | (1) each meeting agenda item unrelated to a contested |
---|
76 | 76 | | case; and |
---|
77 | 77 | | (2) other matters under the commission's jurisdiction. |
---|
78 | 78 | | (a-2) The commission may prohibit public comment at a |
---|
79 | 79 | | regular commission meeting on a meeting agenda item related to a |
---|
80 | 80 | | contested case. |
---|
81 | 81 | | SECTION 4. Section 12.203, Utilities Code, is amended to |
---|
82 | 82 | | read as follows: |
---|
83 | 83 | | Sec. 12.203. BIENNIAL REPORT. (a) Not later than January |
---|
84 | 84 | | 15 of each odd-numbered year, the commission shall prepare a |
---|
85 | 85 | | written report that includes: |
---|
86 | 86 | | (1) suggestions regarding modification and |
---|
87 | 87 | | improvement of the commission's statutory authority and for the |
---|
88 | 88 | | improvement of utility regulation in general, including the |
---|
89 | 89 | | regulation of water and sewer service under Chapter 13, Water Code, |
---|
90 | 90 | | that the commission considers appropriate for protecting and |
---|
91 | 91 | | furthering the interest of the public; |
---|
92 | 92 | | (2) a report on the scope of competition in the |
---|
93 | 93 | | electric and telecommunications markets that includes: |
---|
94 | 94 | | (A) an assessment of: |
---|
95 | 95 | | (i) the effect of competition and industry |
---|
96 | 96 | | restructuring on customers in both competitive and noncompetitive |
---|
97 | 97 | | electric markets; and |
---|
98 | 98 | | (ii) the effect of competition on the rates |
---|
99 | 99 | | and availability of electric services for residential and small |
---|
100 | 100 | | commercial customers; |
---|
101 | 101 | | (B) an assessment of the effect of competition |
---|
102 | 102 | | on: |
---|
103 | 103 | | (i) customers in both competitive and |
---|
104 | 104 | | noncompetitive telecommunications markets, with a specific focus |
---|
105 | 105 | | on rural markets; and |
---|
106 | 106 | | (ii) the rates and availability of |
---|
107 | 107 | | telecommunications services for residential and business |
---|
108 | 108 | | customers, including any effects on universal service; and |
---|
109 | 109 | | (C) a summary of commission action over the |
---|
110 | 110 | | preceding two years that reflects changes in the scope of |
---|
111 | 111 | | competition in regulated electric and telecommunications markets; |
---|
112 | 112 | | and |
---|
113 | 113 | | (3) recommendations for legislation that the |
---|
114 | 114 | | commission determines appropriate to promote the public interest in |
---|
115 | 115 | | the context of partially competitive electric and |
---|
116 | 116 | | telecommunications markets. |
---|
117 | 117 | | (b) A telecommunications utility, as defined by Section |
---|
118 | 118 | | 51.002, shall cooperate with the commission as necessary for the |
---|
119 | 119 | | commission to satisfy the requirements of this section. |
---|
120 | 120 | | SECTION 5. Subchapter E, Chapter 12, Utilities Code, is |
---|
121 | 121 | | amended by adding Section 12.205 to read as follows: |
---|
122 | 122 | | Sec. 12.205. STRATEGIC COMMUNICATIONS PLAN. The commission |
---|
123 | 123 | | shall: |
---|
124 | 124 | | (1) develop an agency-wide plan for: |
---|
125 | 125 | | (A) improving the effectiveness of commission |
---|
126 | 126 | | communications with the public, market participants, and other |
---|
127 | 127 | | relevant audiences; and |
---|
128 | 128 | | (B) responding to changing communications needs; |
---|
129 | 129 | | (2) include in the plan required by Subdivision (1) |
---|
130 | 130 | | goals, objectives, and metrics to assess commission efforts; and |
---|
131 | 131 | | (3) update the plan required by Subdivision (1) at |
---|
132 | 132 | | least once every two years. |
---|
133 | 133 | | SECTION 6. Section 13.002, Utilities Code, is amended to |
---|
134 | 134 | | read as follows: |
---|
135 | 135 | | Sec. 13.002. APPLICATION OF SUNSET ACT. The Office of |
---|
136 | 136 | | Public Utility Counsel is subject to Chapter 325, Government Code |
---|
137 | 137 | | (Texas Sunset Act). Unless continued in existence as provided by |
---|
138 | 138 | | that chapter, the office is abolished [and this chapter expires] |
---|
139 | 139 | | September 1, 2029 [2023]. |
---|
140 | 140 | | SECTION 7. Section 39.151, Utilities Code, is amended by |
---|
141 | 141 | | amending Subsections (d), (g-1), and (g-6) and adding Subsection |
---|
142 | 142 | | (g-7) to read as follows: |
---|
143 | 143 | | (d) The commission shall adopt and enforce rules relating to |
---|
144 | 144 | | the reliability of the regional electrical network and accounting |
---|
145 | 145 | | for the production and delivery of electricity among generators and |
---|
146 | 146 | | all other market participants, or may delegate those |
---|
147 | 147 | | responsibilities to an independent organization [responsibilities |
---|
148 | 148 | | for adopting or enforcing such rules. Rules adopted by an |
---|
149 | 149 | | independent organization and enforcement actions taken by the |
---|
150 | 150 | | organization under delegated authority from the commission are |
---|
151 | 151 | | subject to commission oversight and review and may not take effect |
---|
152 | 152 | | before receiving commission approval]. An independent organization |
---|
153 | 153 | | certified by the commission is directly responsible and accountable |
---|
154 | 154 | | to the commission. The commission has complete authority to |
---|
155 | 155 | | oversee and investigate the independent organization's finances, |
---|
156 | 156 | | budget, and operations as necessary to ensure the organization's |
---|
157 | 157 | | accountability and to ensure that the organization adequately |
---|
158 | 158 | | performs the organization's functions and duties. The independent |
---|
159 | 159 | | organization shall fully cooperate with the commission in the |
---|
160 | 160 | | commission's oversight and investigatory functions. The |
---|
161 | 161 | | commission may take appropriate action against an independent |
---|
162 | 162 | | organization that does not adequately perform the organization's |
---|
163 | 163 | | functions or duties or does not comply with this section, including |
---|
164 | 164 | | decertifying the organization or assessing an administrative |
---|
165 | 165 | | penalty against the organization. The commission by rule shall |
---|
166 | 166 | | adopt procedures governing decertification of an independent |
---|
167 | 167 | | organization, selecting and certifying a successor organization, |
---|
168 | 168 | | and transferring assets to the successor organization to ensure |
---|
169 | 169 | | continuity of operations in the region. The commission may not |
---|
170 | 170 | | implement, by order or by rule, a requirement that is contrary to an |
---|
171 | 171 | | applicable federal law or rule. |
---|
172 | 172 | | (g-1) The [independent organization's] bylaws of an |
---|
173 | 173 | | independent organization certified for the ERCOT power region [or |
---|
174 | 174 | | protocols] must be approved by [the commission] and [must] reflect |
---|
175 | 175 | | the input of the commission. The bylaws must require that every |
---|
176 | 176 | | member of the governing body be a resident of this state and must |
---|
177 | 177 | | prohibit a legislator from serving as a member. The governing body |
---|
178 | 178 | | must be composed of: |
---|
179 | 179 | | (1) two members [the chairman] of the commission as |
---|
180 | 180 | | [an] ex officio nonvoting members: |
---|
181 | 181 | | (A) one of whom must be the presiding officer of |
---|
182 | 182 | | the commission; and |
---|
183 | 183 | | (B) one of whom must be designated by the |
---|
184 | 184 | | presiding officer of the commission to serve a one-year term on the |
---|
185 | 185 | | governing body [member]; |
---|
186 | 186 | | (2) the counsellor as an ex officio voting member |
---|
187 | 187 | | representing residential and small commercial consumer interests; |
---|
188 | 188 | | (3) the chief executive officer of the independent |
---|
189 | 189 | | organization as an ex officio nonvoting member; and |
---|
190 | 190 | | (4) eight members selected by the selection committee |
---|
191 | 191 | | under Section 39.1513 with executive-level experience in any of the |
---|
192 | 192 | | following professions: |
---|
193 | 193 | | (A) finance; |
---|
194 | 194 | | (B) business; |
---|
195 | 195 | | (C) engineering, including electrical |
---|
196 | 196 | | engineering; |
---|
197 | 197 | | (D) trading; |
---|
198 | 198 | | (E) risk management; |
---|
199 | 199 | | (F) law; or |
---|
200 | 200 | | (G) electric market design. |
---|
201 | 201 | | (g-6) In this subsection, a reference to a protocol includes |
---|
202 | 202 | | a rule. Protocols adopted by an independent organization and |
---|
203 | 203 | | enforcement actions taken by the organization under delegated |
---|
204 | 204 | | authority from the commission are subject to commission oversight |
---|
205 | 205 | | and review and may not take effect before receiving commission |
---|
206 | 206 | | approval. To maintain certification as an independent organization |
---|
207 | 207 | | under this section, the organization's governing body must |
---|
208 | 208 | | establish and implement a formal process for adopting new protocols |
---|
209 | 209 | | or revisions to existing protocols. The process must require that |
---|
210 | 210 | | new or revised protocols may not take effect until the commission |
---|
211 | 211 | | approves a market impact statement describing the new or revised |
---|
212 | 212 | | protocols. The commission may approve, reject, or remand with |
---|
213 | 213 | | suggested modifications to the independent organization's |
---|
214 | 214 | | governing body protocols adopted by the organization. |
---|
215 | 215 | | (g-7) The presiding officer of the commission shall |
---|
216 | 216 | | designate commissioners to serve terms on the independent |
---|
217 | 217 | | organization's governing body under Subsection (g-1)(1)(B) in the |
---|
218 | 218 | | order in which the commissioners were first appointed to the |
---|
219 | 219 | | commission. A commissioner may not serve an additional term until |
---|
220 | 220 | | each commissioner has served a term. |
---|
221 | 221 | | SECTION 8. Section 39.1511, Utilities Code, is amended by |
---|
222 | 222 | | amending Subsection (a) and adding Subsection (a-1) to read as |
---|
223 | 223 | | follows: |
---|
224 | 224 | | (a) Meetings of the governing body of an independent |
---|
225 | 225 | | organization certified under Section 39.151 and meetings of a |
---|
226 | 226 | | subcommittee that includes a member of the governing body must be |
---|
227 | 227 | | open to the public. The bylaws of the independent organization and |
---|
228 | 228 | | the rules of the commission may provide for the governing body or |
---|
229 | 229 | | subcommittee to enter into executive session closed to the public |
---|
230 | 230 | | only to address [sensitive matters such as confidential personnel |
---|
231 | 231 | | information,] contracts, [lawsuits,] competitively sensitive |
---|
232 | 232 | | information, [or other] information related to the security of the |
---|
233 | 233 | | regional electrical network, or a matter which the commission would |
---|
234 | 234 | | be authorized to consider in a closed meeting under Chapter 551, |
---|
235 | 235 | | Government Code. |
---|
236 | 236 | | (a-1) An independent organization's governing body or a |
---|
237 | 237 | | subcommittee may adopt a policy allowing the governing body or |
---|
238 | 238 | | subcommittee to enter into an executive session closed to the |
---|
239 | 239 | | public and commissioners, including the commissioners serving as ex |
---|
240 | 240 | | officio nonvoting members, in specific circumstances to address a |
---|
241 | 241 | | matter authorized under Subsection (a). A policy described by this |
---|
242 | 242 | | subsection is not subject to approval by the commission. |
---|
243 | 243 | | SECTION 9. Subchapter D, Chapter 39, Utilities Code, is |
---|
244 | 244 | | amended by adding Section 39.1514 to read as follows: |
---|
245 | 245 | | Sec. 39.1514. COMMISSION DIRECTIVES TO INDEPENDENT |
---|
246 | 246 | | ORGANIZATION. (a) The commission may not use a verbal directive |
---|
247 | 247 | | to direct an independent organization certified under Section |
---|
248 | 248 | | 39.151 to take an official action. The commission may direct the |
---|
249 | 249 | | organization to take an official action only through: |
---|
250 | 250 | | (1) a contested case; |
---|
251 | 251 | | (2) rulemaking; |
---|
252 | 252 | | (3) a memorandum; or |
---|
253 | 253 | | (4) a written order. |
---|
254 | 254 | | (b) The commission by rule shall: |
---|
255 | 255 | | (1) specify the types of directives the commission may |
---|
256 | 256 | | issue through a contested case, rulemaking, memorandum, or written |
---|
257 | 257 | | order; |
---|
258 | 258 | | (2) establish the conditions under which a commission |
---|
259 | 259 | | vote is required before issuing a directive; |
---|
260 | 260 | | (3) require that proposed commission directives be |
---|
261 | 261 | | included as an item on a commission meeting agenda and require the |
---|
262 | 262 | | commission to allow members of the public an opportunity to comment |
---|
263 | 263 | | on the agenda item; and |
---|
264 | 264 | | (4) establish a reasonable timeline for the release |
---|
265 | 265 | | before a commission meeting of discussion materials relevant to |
---|
266 | 266 | | any proposed commission directives included as agenda items for |
---|
267 | 267 | | that meeting. |
---|
268 | 268 | | (c) Notwithstanding another provision of this section, the |
---|
269 | 269 | | commission may use a verbal directive to direct an independent |
---|
270 | 270 | | organization to take an official action in an urgent or emergency |
---|
271 | 271 | | situation that poses an imminent threat to public health, public |
---|
272 | 272 | | safety, or the reliability of the power grid. The commission by rule |
---|
273 | 273 | | shall establish criteria for determining whether a situation is |
---|
274 | 274 | | urgent or an emergency under this subsection and establish a |
---|
275 | 275 | | process by which the commission will issue directives to the |
---|
276 | 276 | | independent organization under this subsection. If an independent |
---|
277 | 277 | | organization follows a verbal directive for more than 72 hours, the |
---|
278 | 278 | | commission shall use a process adopted under this section to |
---|
279 | 279 | | provide written documentation of the directive to the independent |
---|
280 | 280 | | organization. |
---|
281 | 281 | | SECTION 10. Section 39.155(d), Utilities Code, is amended |
---|
282 | 282 | | to read as follows: |
---|
283 | 283 | | (d) In a qualifying power region, the report [reports] |
---|
284 | 284 | | required by Subsection (c) [Subsections (b) and (c)] shall be |
---|
285 | 285 | | submitted by the independent organization or organizations having |
---|
286 | 286 | | authority over the power region or discrete areas thereof. |
---|
287 | 287 | | SECTION 11. Section 39.157(f), Utilities Code, is amended |
---|
288 | 288 | | to read as follows: |
---|
289 | 289 | | (f) Following review of the annual report [reports] |
---|
290 | 290 | | submitted to it under Section 39.155(c) [Sections 39.155(b) and |
---|
291 | 291 | | (c)], the commission shall determine whether specific transmission |
---|
292 | 292 | | or distribution constraints or bottlenecks within this state give |
---|
293 | 293 | | rise to market power in specific geographic markets in the state. |
---|
294 | 294 | | The commission, on a finding that specific transmission or |
---|
295 | 295 | | distribution constraints or bottlenecks within this state give rise |
---|
296 | 296 | | to market power, may order reasonable mitigation of that potential |
---|
297 | 297 | | market power by ordering, under Section 39.203(e), one or more |
---|
298 | 298 | | electric utilities or transmission and distribution utilities to |
---|
299 | 299 | | construct additional transmission or distribution capacity, or |
---|
300 | 300 | | both, subject to the certification provisions of this title. |
---|
301 | 301 | | SECTION 12. (a) This section takes effect only if the Act |
---|
302 | 302 | | of the 88th Legislature, Regular Session, 2023, relating to |
---|
303 | 303 | | nonsubstantive additions to and corrections in enacted codes |
---|
304 | 304 | | becomes law. |
---|
305 | 305 | | (b) Subchapter D, Chapter 39, Utilities Code, is amended by |
---|
306 | 306 | | adding Sections 39.166 and 39.167 to read as follows: |
---|
307 | 307 | | Sec. 39.166. ELECTRIC INDUSTRY REPORT. (a) Not later than |
---|
308 | 308 | | January 15 of each odd-numbered year, the commission, in |
---|
309 | 309 | | consultation with the independent organization certified under |
---|
310 | 310 | | Section 39.151 for the ERCOT power region, shall prepare and submit |
---|
311 | 311 | | to the legislature an electric industry report. |
---|
312 | 312 | | (b) Each electric industry report submitted under this |
---|
313 | 313 | | section must: |
---|
314 | 314 | | (1) identify existing and potential transmission and |
---|
315 | 315 | | distribution constraints and system needs within the ERCOT power |
---|
316 | 316 | | region, alternatives for meeting system needs, and recommendations |
---|
317 | 317 | | for meeting system needs; |
---|
318 | 318 | | (2) summarize key findings from: |
---|
319 | 319 | | (A) the grid reliability assessment conducted |
---|
320 | 320 | | under Section 39.165; and |
---|
321 | 321 | | (B) the report required by Section 39.904(k); |
---|
322 | 322 | | (3) outline basic information regarding the electric |
---|
323 | 323 | | grid and market in this state, including generation capacity, |
---|
324 | 324 | | customer demand, and transmission capacity currently installed on |
---|
325 | 325 | | the grid and projected in the future; and |
---|
326 | 326 | | (4) be presented in plain language that is readily |
---|
327 | 327 | | understandable by a person with limited knowledge of the electric |
---|
328 | 328 | | industry. |
---|
329 | 329 | | Sec. 39.167. CONFLICTS OF INTEREST REPORT. The commission |
---|
330 | 330 | | and the independent organization certified under Section 39.151 for |
---|
331 | 331 | | the ERCOT power region annually shall review statutes, rules, |
---|
332 | 332 | | protocols, and bylaws that apply to conflicts of interest for |
---|
333 | 333 | | commissioners and for members of the governing body of the |
---|
334 | 334 | | independent organization and submit to the legislature a report on |
---|
335 | 335 | | the effects the statutes, rules, protocols, and bylaws have on the |
---|
336 | 336 | | ability of the commission and the independent organization to |
---|
337 | 337 | | fulfill their duties. |
---|
338 | 338 | | SECTION 13. (a) This section takes effect only if the Act of |
---|
339 | 339 | | the 88th Legislature, Regular Session, 2023, relating to |
---|
340 | 340 | | nonsubstantive additions to and corrections in enacted codes does |
---|
341 | 341 | | not become law. |
---|
342 | 342 | | (b) Subchapter D, Chapter 39, Utilities Code, is amended by |
---|
343 | 343 | | adding Sections 39.166 and 39.167 to read as follows: |
---|
344 | 344 | | Sec. 39.166. ELECTRIC INDUSTRY REPORT. (a) Not later than |
---|
345 | 345 | | January 15 of each odd-numbered year, the commission, in |
---|
346 | 346 | | consultation with the independent organization certified under |
---|
347 | 347 | | Section 39.151 for the ERCOT power region, shall prepare and submit |
---|
348 | 348 | | to the legislature an electric industry report. |
---|
349 | 349 | | (b) Each electric industry report submitted under this |
---|
350 | 350 | | section must: |
---|
351 | 351 | | (1) identify existing and potential transmission and |
---|
352 | 352 | | distribution constraints and system needs within the ERCOT power |
---|
353 | 353 | | region, alternatives for meeting system needs, and recommendations |
---|
354 | 354 | | for meeting system needs; |
---|
355 | 355 | | (2) summarize key findings from: |
---|
356 | 356 | | (A) the grid reliability assessment conducted |
---|
357 | 357 | | under Section 39.159, as added by Chapter 876 (S.B. 1281), Acts of |
---|
358 | 358 | | the 87th Legislature, Regular Session, 2021; and |
---|
359 | 359 | | (B) the report required by Section 39.904(k); |
---|
360 | 360 | | (3) outline basic information regarding the electric |
---|
361 | 361 | | grid and market in this state, including generation capacity, |
---|
362 | 362 | | customer demand, and transmission capacity currently installed on |
---|
363 | 363 | | the grid and projected in the future; and |
---|
364 | 364 | | (4) be presented in plain language that is readily |
---|
365 | 365 | | understandable by a person with limited knowledge of the electric |
---|
366 | 366 | | industry. |
---|
367 | 367 | | Sec. 39.167. CONFLICTS OF INTEREST REPORT. The commission |
---|
368 | 368 | | and the independent organization certified under Section 39.151 for |
---|
369 | 369 | | the ERCOT power region annually shall review statutes, rules, |
---|
370 | 370 | | protocols, and bylaws that apply to conflicts of interest for |
---|
371 | 371 | | commissioners and for members of the governing body of the |
---|
372 | 372 | | independent organization and submit to the legislature a report on |
---|
373 | 373 | | the effects the statutes, rules, protocols, and bylaws have on the |
---|
374 | 374 | | ability of the commission and the independent organization to |
---|
375 | 375 | | fulfill their duties. |
---|
376 | 376 | | SECTION 14. Section 39.203(i), Utilities Code, is amended |
---|
377 | 377 | | to read as follows: |
---|
378 | 378 | | (i) The commission, in cooperation with transmission and |
---|
379 | 379 | | distribution utilities and the ERCOT independent system operator, |
---|
380 | 380 | | shall study whether existing transmission and distribution |
---|
381 | 381 | | planning processes are sufficient to provide adequate |
---|
382 | 382 | | infrastructure for seawater desalination projects. If the |
---|
383 | 383 | | commission determines that statutory changes are needed to ensure |
---|
384 | 384 | | that adequate infrastructure is developed for projects of that |
---|
385 | 385 | | kind, the commission shall include recommendations in the report |
---|
386 | 386 | | required by Section 12.203 [31.003]. |
---|
387 | 387 | | SECTION 15. Section 39.206(q), Utilities Code, is amended |
---|
388 | 388 | | to read as follows: |
---|
389 | 389 | | (q) The commission shall, in conjunction with the Nuclear |
---|
390 | 390 | | Regulatory Commission, investigate the development of a mechanism |
---|
391 | 391 | | whereby the State of Texas could ensure that funds for |
---|
392 | 392 | | decommissioning will be obtained when necessary in the same manner |
---|
393 | 393 | | as if the State of Texas were the licensee under federal law. [The |
---|
394 | 394 | | commission shall file legislative recommendations regarding any |
---|
395 | 395 | | changes in law that may be necessary to carry out the purposes of |
---|
396 | 396 | | this subsection prior to January 15, 2009, which may be combined |
---|
397 | 397 | | with the report required by Section 31.003.] |
---|
398 | 398 | | SECTION 16. Section 39.904(k), Utilities Code, is amended |
---|
399 | 399 | | to read as follows: |
---|
400 | 400 | | (k) The commission and the independent organization |
---|
401 | 401 | | certified under Section 39.151 for the ERCOT power region [for |
---|
402 | 402 | | ERCOT] shall study the need for increased transmission and |
---|
403 | 403 | | generation capacity throughout this state and report to the |
---|
404 | 404 | | legislature the results of the study and any recommendations for |
---|
405 | 405 | | legislation. The report must be filed with the legislature not |
---|
406 | 406 | | later than December 31 of each even-numbered year [and may be filed |
---|
407 | 407 | | as a part of the report required by Subsection (j)]. |
---|
408 | 408 | | SECTION 17. Section 39.9055, Utilities Code, is amended to |
---|
409 | 409 | | read as follows: |
---|
410 | 410 | | Sec. 39.9055. EXAMINATION OF DEMAND RESPONSE POTENTIAL OF |
---|
411 | 411 | | SEAWATER DESALINATION PROJECTS. The commission and the ERCOT |
---|
412 | 412 | | independent system operator shall study the potential for seawater |
---|
413 | 413 | | desalination projects to participate in existing demand response |
---|
414 | 414 | | opportunities in the ERCOT market. To the extent feasible, the |
---|
415 | 415 | | study shall determine whether the operational characteristics of |
---|
416 | 416 | | seawater desalination projects enable projects of that kind to |
---|
417 | 417 | | participate in ERCOT-operated ancillary services markets or other |
---|
418 | 418 | | competitively supplied demand response opportunities. The study |
---|
419 | 419 | | shall also determine the potential economic benefit to a seawater |
---|
420 | 420 | | desalination project if the project is able to reduce its demand |
---|
421 | 421 | | during peak pricing periods. The commission shall include the |
---|
422 | 422 | | results of the study in the report required by Section 12.203 |
---|
423 | 423 | | [31.003]. |
---|
424 | 424 | | SECTION 18. Section 39.908, Utilities Code, is amended to |
---|
425 | 425 | | read as follows: |
---|
426 | 426 | | Sec. 39.908. EFFECT OF SUNSET PROVISION. [(a)] If the |
---|
427 | 427 | | commission is abolished under Section 12.005 or other law, the [and |
---|
428 | 428 | | the other provisions of this title expire as provided by Chapter |
---|
429 | 429 | | 325, Government Code (Texas Sunset Act), this subchapter, including |
---|
430 | 430 | | the provisions of this title referred to in this subchapter, |
---|
431 | 431 | | continues in full force and effect and does not expire. |
---|
432 | 432 | | [(b) The] authorities, duties, and functions of the |
---|
433 | 433 | | commission under this chapter shall be performed and carried out by |
---|
434 | 434 | | a successor agency to be designated by the legislature before |
---|
435 | 435 | | abolishment of the commission or, if the legislature does not |
---|
436 | 436 | | designate the successor, by the secretary of state. |
---|
437 | 437 | | SECTION 19. Section 52.060, Utilities Code, is amended to |
---|
438 | 438 | | read as follows: |
---|
439 | 439 | | Sec. 52.060. ADMINISTRATIVE FEE OR ASSESSMENT. The |
---|
440 | 440 | | commission may prescribe and collect a fee or assessment from local |
---|
441 | 441 | | exchange companies necessary to recover the cost to the commission |
---|
442 | 442 | | and to the office of activities carried out and services provided |
---|
443 | 443 | | under this subchapter and Section 12.203 [52.006]. |
---|
444 | 444 | | SECTION 20. Section 13.4132, Water Code, is amended by |
---|
445 | 445 | | adding Subsection (b-1) to read as follows: |
---|
446 | 446 | | (b-1) Notwithstanding Section 5.505, the term of an |
---|
447 | 447 | | emergency order issued under this section by the utility commission |
---|
448 | 448 | | or the commission may not exceed 360 days. The emergency order may |
---|
449 | 449 | | be renewed: |
---|
450 | 450 | | (1) once for a period not to exceed 360 days; or |
---|
451 | 451 | | (2) if the utility is undergoing a sale, transfer, |
---|
452 | 452 | | merger, consolidation, or acquisition required to be reported to |
---|
453 | 453 | | the utility commission under Section 13.301, for a reasonable time |
---|
454 | 454 | | until the sale, transfer, merger, consolidation, or acquisition is |
---|
455 | 455 | | complete. |
---|
456 | 456 | | SECTION 21. (a) The following provisions are repealed: |
---|
457 | 457 | | (1) Section 304.201, Business & Commerce Code; |
---|
458 | 458 | | (2) Section 31.003, Utilities Code; |
---|
459 | 459 | | (3) Section 39.155(b), Utilities Code; |
---|
460 | 460 | | (4) Section 39.904(j), Utilities Code; and |
---|
461 | 461 | | (5) Section 52.006, Utilities Code. |
---|
462 | 462 | | (b) Section 34, Chapter 426 (S.B. 3), Acts of the 87th |
---|
463 | 463 | | Legislature, Regular Session, 2021, is repealed. |
---|
464 | 464 | | SECTION 22. The presiding officer of the Public Utility |
---|
465 | 465 | | Commission of Texas shall designate a commissioner to serve a term |
---|
466 | 466 | | on the governing body of the independent organization certified |
---|
467 | 467 | | under Section 39.151, Utilities Code, for the ERCOT power region |
---|
468 | 468 | | that begins January 1, 2024, to comply with Section 39.151(g-1), |
---|
469 | 469 | | Utilities Code, as amended by this Act. |
---|
470 | 470 | | SECTION 23. (a) Except as provided by Subsection (b) of |
---|
471 | 471 | | this section, Section 12.059, Utilities Code, as amended by this |
---|
472 | 472 | | Act, applies to a member of the Public Utility Commission of Texas |
---|
473 | 473 | | appointed before, on, or after the effective date of this Act. |
---|
474 | 474 | | (b) A member of the Public Utility Commission of Texas who, |
---|
475 | 475 | | before the effective date of this Act, completed the training |
---|
476 | 476 | | program required by Section 12.059, Utilities Code, as that law |
---|
477 | 477 | | existed before the effective date of this Act, is only required to |
---|
478 | 478 | | complete additional training on the subjects added by this Act to |
---|
479 | 479 | | the training program required by Section 12.059, Utilities Code. A |
---|
480 | 480 | | commission member described by this subsection may not vote, |
---|
481 | 481 | | deliberate, or be counted as a member in attendance at a meeting of |
---|
482 | 482 | | the commission held on or after December 1, 2023, until the member |
---|
483 | 483 | | completes the additional training. |
---|
484 | 484 | | SECTION 24. This Act takes effect September 1, 2023. |
---|