Enrolled Bill Summary

Senate Bill 2	Senate Author:  Hancock et al.
Effective:  6-8-21	House Sponsor:  Paddie

            Senate Bill 2 amends the Utilities Code to set out and revise provisions relating to the governance of the Public Utility Commission of Texas (PUC), the Office of Public Utility Counsel (OPUC), and ERCOT. Among other provisions, the bill requires the commissioner designated as the presiding officer of the PUC and the chief executive of OPUC to be Texas residents and requires that any rules adopted by, or enforcement actions taken by, ERCOT receive approval from the PUC before taking effect.

Senate Bill 2 also requires that the ERCOT bylaws require every member of its governing body be a Texas resident and prohibit a legislator from serving as a member. With respect to the composition of the governing body of ERCOT, the bill changes the ERCOT chief executive officer from a voting member to a nonvoting member and decreases the overall number of members from 16 to 11 by replacing the six members who are market participants, the two members representing consumer interests, and the five unaffiliated members with eight members to be selected by the newly established ERCOT board selection committee that have executive‑level experience in a qualifying profession. The bill prohibits the governing body from including more than two members who are employed by an institution of higher education in a professorial role, entitles members to receive a salary for their service, and prohibits a former member from engaging in lobbying activities before the second anniversary of the date they cease to be a member. The bill makes a person ineligible to be selected to serve as a member of the governing body if they have a fiduciary duty or assets in the electricity market for the ERCOT power region. The bill gives ERCOT until September 1, 2021, to come into compliance with the bill's requirements.