By:  Patterson                                S.B. No. 980

         97S0601/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to ensuring reliable electric service; providing an

 1-2     administrative penalty.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  (a)  The purpose of this Act is to ensure that

 1-5     facilities and personnel needed to maintain the reliability of the

 1-6     electric supply remain available and operational.

 1-7           (b)  The legislature is concerned that the merger of public

 1-8     utilities and the downsizing and restructuring of public utilities

 1-9     could lead to a reduction in the quality of electric service being

1-10     supplied to the citizens of the State of Texas.

1-11           SECTION 2.  Subtitle A, Title II, Public Utility Regulatory

1-12     Act of 1995 (Article 1446c-O, Vernon's Texas Civil Statutes), is

1-13     amended by adding Section 2.004 to read as follows:

1-14           Sec. 2.004.  ELECTRIC RELIABILITY AND SERVICE.  (a)  The

1-15     commission shall by rule adopt inspection, maintenance, repair, and

1-16     replacement standards for transmission and distribution systems of

1-17     public utilities.  Standards shall be set for each substantial type

1-18     of distribution and transmission equipment or facility in order to

1-19     ensure high quality, safe, and reliable electric service. Included

1-20     in the standards adopted by the commission will be a requirement

1-21     that the public utility strategically locate sufficient personnel

1-22     throughout its service territory to fully and adequately carry out

1-23     the mandates established by the commission and that such personnel

 2-1     have adequate experience and training.

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

 2-3     of each public utility every three years to verify that each of the

 2-4     requirements mandated by the commission under this section have

 2-5     been satisfied.

 2-6           (c)  Notwithstanding Section 1.3215, for any outage which

 2-7     affects more than 1,000 customers and lasts longer than 48 hours,

 2-8     the commission shall have the authority to impose an administrative

 2-9     penalty against the utility in an amount not to exceed $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 public utility shall maintain one or more customer

2-20     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;

 3-1                 (3)  monthly reports are filed at the commission on

 3-2     daily and monthly call center performance;

 3-3                 (4)  customer service representatives are trained to

 3-4     identify potential service and safety problems; and

 3-5                 (5)  customers are notified clearly and conspicuously

 3-6     on at least a quarterly basis how to reach the call centers.

 3-7           (e)  Nothing in this section shall be construed to lessen the

 3-8     authority granted a regulatory authority by any other provision of

 3-9     this Act with regard to the quality or provision of electric

3-10     service.

3-11           SECTION 3.  The Public Utility Commission shall adopt the

3-12     rules required by Section 2.004, Public Utility Regulatory Act of

3-13     1995 (Article 1446c-O, Vernon's Texas Civil Statutes), as added by

3-14     this Act, not later than July 31, 1997.

3-15           SECTION 4.  The importance of this legislation and the

3-16     crowded condition of the calendars in both houses create an

3-17     emergency and an imperative public necessity that the

3-18     constitutional rule requiring bills to be read on three several

3-19     days in each house be suspended, and this rule is hereby suspended,

3-20     and that this Act take effect and be in force from and after its

3-21     passage, and it is so enacted.