Texas 2025 - 89th Regular

Texas Senate Bill SB1789 Compare Versions

Version 1 (Old)

Version 2 (New)

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	1	+	89R15023 CXP-D
1	2		By: Schwertner S.B. No. 1789
2		-	(In the Senate - Filed February 28, 2025; March 13, 2025,
3		-	read first time and referred to Committee on Business & Commerce;
4		-	April 14, 2025, reported adversely, with favorable Committee
5		-	Substitute by the following vote: Yeas 10, Nays 0; April 14, 2025,
6		-	sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 1789 By: Schwertner
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13	7		A BILL TO BE ENTITLED
14	8		AN ACT
15	9		relating to electric service quality and reliability.
16	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	11		SECTION 1. Section 36.402, Utilities Code, is amended by
18	12		adding Subsection (b-1) to read as follows:
19		-	(b-1) Notwithstanding Subsection (b), if an electric
20		-	utility fails to comply with the standards required by Section
21		-	38.006 and the utility's system is damaged by a weather-related
22		-	event or natural disaster, the commission may at the utility's next
23		-	rate proceeding reduce the utility's return on equity for
24		-	infrastructure used or installed to repair or replace the damaged
25		-	portion of the system.
	13	+	(b-1) Notwithstanding Subsection (b), the commission may
	14	+	not authorize an electric utility to receive a return on equity for
	15	+	repaired or replaced damaged infrastructure that the commission
	16	+	determines the utility should have reasonably anticipated could
	17	+	have been damaged by the weather-related event or natural disaster.
26	18		SECTION 2. Section 38.005(b), Utilities Code, is amended to
27	19		read as follows:
28	20		(b) The commission may take appropriate enforcement action
29	21		under this section, including action against a utility, if any of
30	22		the utility's feeders with 10 or more customers has had a SAIDI or
31	23		SAIFI average that is more than 200 [300] percent greater than the
32	24		system average of all feeders during any two-year period[,
33	25		beginning in the year 2000]. In determining the appropriate
34	26		enforcement action, the commission shall consider:
35	27		(1) the feeder's operating and maintenance history;
36	28		(2) the cause of each interruption in the feeder's
37	29		service;
38	30		(3) the duration of each interruption in the feeder's
39	31		service;
40	32		(4) any action taken by a utility to address the
41	33		feeder's performance;
42	34		(5) [(4)] the estimated cost and benefit of
43	35		remediating a feeder's performance; and
44	36		(6) [(5)] any other relevant factor as determined by
45	37		the commission.
46	38		SECTION 3. Subchapter A, Chapter 38, Utilities Code, is
47	39		amended by adding Section 38.006 to read as follows:
48	40		Sec. 38.006. STRUCTURAL INTEGRITY STANDARDS FOR
49	41		TRANSMISSION AND DISTRIBUTION POLES. (a) This section applies
50	42		only to an electric utility, municipally owned utility, or electric
51	43		cooperative that operates transmission or distribution assets.
52	44		(b) The commission by rule shall adopt standards for the
53	45		structural integrity of transmission and distribution poles.
54	46		(c) The standards adopted under this section must:
55	47		(1) require an electric utility, municipally owned
56		-	utility, or electric cooperative to:
57		-	(A) inspect, maintain, remediate, and replace
58		-	transmission and distribution poles as necessary on a timeline
59		-	established by the commission; and
60		-	(B) maintain records of the actions described by
61		-	Paragraph (A);
62		-	(2) account for geographic and weather
63		-	characteristics of this state;
	48	+	utility, or electric cooperative to inspect transmission and
	49	+	distribution poles and take appropriate remedial action as
	50	+	necessary on a timeline established by the commission;
	51	+	(2) account for geographic differences between
	52	+	regions of the state;
64	53		(3) consider national guidelines such as the National
65	54		Electrical Safety Code and guidelines developed by the Rural
66	55		Utilities Service of the United States Department of Agriculture;
	56	+	and
67	57		(4) establish a classification system to assess the
68		-	serviceability of transmission and distribution poles that
69		-	accounts for pole maintenance and extending the service life of
70		-	transmission and distribution poles; and
71		-	(5) consider the characteristics of electric utility,
72		-	municipally owned utility, and electric cooperative transmission
73		-	and distribution systems throughout this state.
74		-	(d) Not later than May 1 of each year, each electric
75		-	utility, municipally owned utility, and electric cooperative shall
76		-	submit to the commission a report on:
	58	+	serviceability of transmission and distribution poles.
	59	+	(d) Each electric utility, municipally owned utility, and
	60	+	electric cooperative shall submit to the commission an annual
	61	+	report on:
77	62		(1) the implementation of the utility's or
78	63		cooperative's transmission and distribution pole maintenance
79	64		schedule;
80	65		(2) the results of the utility's or cooperative's
81		-	inspection of transmission and distribution poles, including the
82		-	number of poles inspected and any remediation or replacement action
83		-	taken; and
	66	+	inspection of transmission and distribution poles, including any
	67	+	remediation or replacement action taken; and
84	68		(3) any other information the commission requires.
85	69		SECTION 4. The heading to Subchapter E, Chapter 38,
86	70		Utilities Code, is amended to read as follows:
87	71		SUBCHAPTER E. INFRASTRUCTURE IMPROVEMENT AND MAINTENANCE [REPORT]
88	72		SECTION 5. Section 38.101(a), Utilities Code, is amended to
89	73		read as follows:
90	74		(a) Not later than May 1 of each year, each electric utility
91	75		shall submit to the commission a report describing the utility's
92	76		activities related to:
93	77		(1) identifying areas that are susceptible to damage
94	78		during severe weather and hardening transmission and distribution
95	79		facilities in those areas; and
96	80		(2) vegetation management[; and
97	81		[(3) inspecting distribution poles].
98	82		SECTION 6. (a) The changes in law made by this Act to
99	83		Section 38.005, Utilities Code, apply only to an enforcement action
100	84		initiated by the Public Utility Commission of Texas on or after the
101	85		effective date of this Act. An enforcement action initiated before
102	86		the effective date of this Act is governed by the law in effect
103	87		immediately before the effective date of this Act, and the former
104	88		law is continued in effect for that purpose.
105	89		(b) In adopting rules under Section 38.006, Utilities Code,
106	90		as added by this Act, the Public Utility Commission of Texas shall
107	91		allow an electric utility, electric cooperative, or municipally
108	92		owned utility to complete any required inspection, remediation, or
109	93		replacement of transmission and distribution poles installed
110	94		before the effective date of the rules according to a reasonable
111	95		timeline approved by the commission that allows the utility or
112	96		cooperative to prioritize high-risk transmission and distribution
113	97		poles.
114	98		SECTION 7. This Act takes effect September 1, 2025.
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