SRC-JRN S.B. 980 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 980
By: Patterson
State Affairs
3-14-97
As Filed


DIGEST 

Currently, state law contains provisions dealing with fair rate
regulations, but does not establish standards for reliability or customer
service.  In the Public Utility Commission's Report to the 75th Texas
Legislature, it was found that utility reliability varies between and
within utility companies around the state.  This bill sets forth standards
for the regulation of public utilities by the Public Utility Commission of
Texas. 

PURPOSE

As proposed, S.B. 980 sets forth standards for the regulation of public
utilities by the Public Utility Commission of Texas. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Public Utility Commission of Texas
in SECTION 2 (Article 1446c-O, V.T.C.S.) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. (a) Provides that the purpose of this Act is to ensure that
facilities and personnel needed to maintain the electric supply are
available. 

(b) Provides that the legislature is concerned with the merger of public
utilities. 

SECTION 2. Amends Article 1446c-O, V.T.C.S., by adding Section 2.004, as
follows: 

Sec. 2.004.  ELECTRIC RELIABILITY AND SERVICE.  Requires the Public
Utility Commission of Texas (commission) to adopt rules for inspection,
maintenance, repair, and replacement standards for transmission and
distribution systems of public utilities.  Requires standards to be set
for each substantial type of distribution and transmission in order to
ensure a certain level of service.  Provides that included in its
standards adopted by the commission will be a requirement that the public
utility strategically locate sufficient personnel throughout its service
territory to carry out the mandates established by the commission.
Requires personnel to have adequate experience and training.  Requires the
commission to inspect the records and facilities of each public utility
every three years. Requires the commission to have the authority to impose
an administrative penalty against the utility for a certain amount,
notwithstanding Section 1.3215, for any outrage which affects more than
1,000 customers and lasts longer than 48 hours.  Requires the commission
to require a public utility to notify each customer subject to the outage
of the proceeding initiated to establish the appropriateness of an
administrative penalty, if any.  Prohibits a utility from recovering
administrative penalties in its rates.  Requires the commission to have
the authority to adopt rules necessary for carrying out this subsection.
Requires each public utility to maintain one or more customer call centers
where certain provisions regarding customer service apply.  Provides that
nothing in this subsection shall be construed to lessen the authority by
any other provision of this Act with regard to the quality or provision of
electric service. 

SECTION 3. Requires the commission to adopt the rules required by Section
2.004, Article 1446cO, V.T.C.S., not later than July 31, 1997. 

SECTION 4. Emergency clause.
  Effective date: upon passage.