Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Stiles                                       H.B. No. 1309

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to ensuring reliable electric service and prescribing an

 1-3     administrative penalty.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  PURPOSE.  (a)  The purpose of this Act is to

 1-6     ensure that facilities and personnel needed to maintain the

 1-7     reliability of the electric supply remain available and

 1-8     operational.

 1-9           (b)  The Legislature is concerned that the merger of public

1-10     utilities and the downsizing and restructuring of public utilities

1-11     could lead to a reduction in the quality of electric service being

1-12     supplied to the citizens of the State of Texas.

1-13           SECTION 2.  Add a new Section 2.004 to the Public Utility

1-14     Regulatory Act of 1995 to read as follows:

1-15           Sec. 2.004.  ELECTRIC RELIABILITY AND SERVICE.  (a)  The

1-16     commission shall adopt inspection maintenance, repair and

1-17     replacement standards for transmission and distribution systems of

1-18     investor-owned utilities no later than July 31, 1997.  Standards

1-19     shall be set for each substantial type of distribution and

1-20     transmission equipment or facility in order to ensure high quality,

1-21     safe and reliable electric service.  Included in the standards

1-22     adopted by the commission will be a requirement that the public

1-23     utility locate sufficient personnel, strategically throughout its

1-24     service territory, in order to fully and adequately carry out the

 2-1     mandates established by the commission and that such personnel have

 2-2     adequate experience and training.

 2-3           (b)  The commission shall inspect the records and facilities

 2-4     of each investor-owned utility every three years to verify that

 2-5     each of the requirements mandated by the commission under  this

 2-6     section have been satisfied.

 2-7           (c)  For any outage which affects more than 1,000 customers

 2-8     and lasts longer than 48 hours, the commission shall have the

 2-9     authority to impose an administrative penalty of up to $100,000 per

2-10     day for each day service was disconnected as a result of the

2-11     failure to undertake reasonable and prudent preventive maintenance

2-12     measures to avoid such an outage.  The commission shall require the

2-13     public utility to notify each customer subject to the outage of the

2-14     proceeding initiated to establish the appropriateness of an

2-15     administrative penalty, if any.  A utility is prohibited from

2-16     recovering administrative penalties in its rates.  The commission

2-17     shall have the authority to adopt rules necessary for carrying out

2-18     this subsection.

2-19           (d)  Each investor-owned utility shall maintain one or more

2-20     customer call centers where:

2-21                 (1)  the average wait is less than 20 seconds to speak

2-22     to a representative;

2-23                 (2)  less than one percent of the time the customer

2-24     encounters a busy signal during normal operations and less than

2-25     three percent during outages;

2-26                 (3)  monthly reports are filed at the commission on

2-27     daily and monthly call center performance;

2-28                 (4)  customer service representatives are trained to

2-29     identify potential service and safety problems; and

2-30                 (5)  customers are notified clearly and conspicuously

 3-1     on at least a quarterly basis how to reach the call center(s).

 3-2           (e)  Nothing in this section shall be construed to lessen the

 3-3     authority granted a regulatory authority by any other provision of

 3-4     the Public Utility Regulatory Act of 1995 with regard to the

 3-5     quality or provision of electric service.

 3-6           SECTION 3.  The importance of this legislation and the

 3-7     crowded condition of the calendars in both houses create an

 3-8     emergency and an imperative public necessity that the

 3-9     constitutional rule requiring bills to be read on three several

3-10     days in each house be suspended, and this rule is hereby suspended,

3-11     and that this Act take effect and be in force from and after its

3-12     passage, and it is so enacted.