Amend CSSB 408 as follows:
(1) In Section 11.0042(a)(5), Utilities Code, as added by SECTION 4 of the bill (page 6, lines 9-10), strike "but not more
than 15 percent".
(2) In Section 11.0042(b), Utilities Code, as added by
SECTION 4 of the bill (page 6, line 22), strike "five percent or
more but not more than 15 percent of".
(3) In Section 11.010(a), Utilities Code, as added by
SECTION 6 of the bill (page 8, line 17), strike "contested
proceeding before" and substitute "contested proceeding hearing
before".
(4) In Section 11.010(a), Utilities Code, as added by
SECTION 6 of the bill (page 8, line 20), insert the following after
the period:
This subsection does not affect the ability of an entity to hire or
contract for other persons to provide services, including
professional services, to the entity in relation to a contested
proceeding, including a hearing related to a contested proceeding.
(5) Strike SECTION 9 (page 9, lines 7-11) and SECTION 44 of
the bill (page 46, lines 17-23).
(6) In Section 14.101(d)(5), Utilities Code, as added by
SECTION 25 of the bill (page 19, line 14), strike ", another state,
or another state agency".
(7) In the recital to SECTION 27 of the bill (page 19, lines
22 and 23), strike "Subsections (d), (e), and (f)" and substitute
"Subsections (d) and (e)".
(8) In Section 15.023(b), Utilities Code, as amended by
SECTION 27 of the bill (page 19, line 25), strike "$10,000" and
substitute "$25,000".
(9) Strike Subsection (f), Section 15.023, Utilities Code,
as added by SECTION 27 of the bill (page 21, lines 5-10).
(10) In Section 16.001(b), Utilities Code, as amended by
SECTION 34 of the bill (page 26, lines 5 and 6), strike "[public
utility's, retail electric provider's, or electric cooperative's]"
and substitute "[public] utility's, retail electric provider's,
provider's, or electric cooperative's".
(11) In Section 39.301, Utilities Code, as amended by
SECTION 37 of the bill (page 27, lines 14-17), strike "It is the
policy of this state to encourage electric utilities and
transmission and distribution utilities to use securitization
financing [stranded costs,] because this" and substitute "This
[stranded costs, because this]".
(12) Insert the following appropriately numbered SECTIONS
to the bill and renumber following SECTIONS as appropriate:
SECTION __. Section 31.003, Utilities Code, is amended by
adding Subsection (c) to read as follows:
(c) The commission may include with the report required by
this section any other report required to be made to the legislature
before January 15 of an odd-numbered year. A report included with
the report required by this section must be clearly distinct from
the report required by this section.
SECTION ____. Section 32.001(b), Utilities Code, is amended
to read as follows:
(b) The commission has exclusive appellate jurisdiction to
review an order or ordinance of a municipality exercising exclusive
original jurisdiction under this subtitle, including under Chapter
33.
SECTION __. Section 39.151, Utilities Code, is amended by
amending Subsections (b) through (e), (g), and (h) and adding
Subsections (d-1) and (g-1) to read as follows:
(b) "Independent organization" means an independent system
operator or other person that is sufficiently independent of any
producer or seller of electricity that its decisions will not be
unduly influenced by any producer or seller. [An entity will be
deemed to be independent if it is governed by a board that has three
representatives from each segment of the electric market, with the
consumer segment being represented by one residential customer, one
commercial customer, and one industrial retail customer.]
(c) The commission shall certify an independent
organization or organizations to perform the functions prescribed
by this section. The commission shall apply the provisions of this
section and Sections 39.1511, 39.1512, and 39.1515 so as to avoid
conflict with a ruling of a federal regulatory body.
(d) The commission shall adopt and enforce rules [An
independent organization certified by the commission for a power
region shall establish and enforce procedures, consistent with this
title and the commission's rules,] relating to the reliability of
the regional electrical network and accounting for the production
and delivery of electricity among generators and all other market
participants, or may delegate to an independent organization
responsibilities for establishing or enforcing such rules. Any
such rules adopted by an independent organization and any
enforcement actions taken by the organization are[. The procedures
shall be] subject to commission oversight and review. An
independent organization certified by the commission is directly
responsible and accountable to the commission. The commission has
complete authority to oversee and investigate the organization's
finances, budget, and operations as necessary to ensure the
organization's accountability and to ensure that the organization
adequately performs the organization's functions and duties. The
organization shall fully cooperate with the commission in the
commission's oversight and investigatory functions. The
commission may take appropriate action against an organization that
does not adequately perform the organization's functions or duties
or does not comply with this section, including decertifying the
organization or assessing an administrative penalty against the
organization. The commission by rule shall adopt procedures
governing decertification of an independent organization,
selecting and certifying a successor organization, and
transferring assets to the successor organization to ensure
continuity of operations in the region. The commission may not
implement, by order or by rule, a requirement that is contrary to an
applicable federal law or rule.
(d-1) The commission may:
(1) require an independent organization to provide
reports and information relating to the independent organization's
performance of the functions prescribed by this section and
relating to the organization's revenues, expenses, and other
financial matters;
(2) prescribe a system of accounts for an independent
organization;
(3) conduct audits of an independent organization's
performance of the functions prescribed by this section or relating
to its revenues, expenses, and other financial matters and may
require an independent organization to conduct such an audit;
(4) inspect an independent organization's facilities,
records, and accounts during reasonable hours and after reasonable
notice to the independent organization;
(5) assess administrative penalties against an
independent organization that violates this title or a rule or
order adopted by the commission and, at the request of the
commission, the attorney general may apply for a court order to
require an independent organization to comply with commission rules
and orders in the manner provided by Chapter 15; and
(6) resolve disputes between an affected person and an
independent organization and adopt procedures for the efficient
resolution of such disputes.
(e) The commission may authorize an independent
organization that is certified under this section to charge a
reasonable and competitively neutral rate to wholesale buyers and
sellers to cover the independent organization's costs. The
commission shall investigate the organization's cost efficiencies,
salaries and benefits, and use of debt financing and may require the
organization to provide any information needed to effectively
evaluate the organization's budget and the reasonableness and
neutrality of a rate or proposed rate or to evaluate the
effectiveness or efficiency of the organization. The commission
shall work with the organization to establish the detail of
information, both current and historical, and the time frames the
commission needs to effectively evaluate a rate or a rate request.
(g) To maintain certification as an independent
organization under this section, an organization's [If it amends
its governance rules to provide that its governing body is composed
as prescribed by this subsection, the existing independent system
operator in ERCOT will meet the criteria provided by Subsection (a)
with respect to ensuring access to the transmission systems for all
buyers and sellers of electricity in the ERCOT region and ensuring
the reliability of the regional electrical network. To comply with
this subsection, the] governing body must be composed of persons
specified by this section and selected in accordance with formal
bylaws or protocols of the organization. The bylaws or protocols
must be approved by the commission and must reflect the input of the
commission. The bylaws must specify the process by which
appropriate stakeholders elect members and, for unaffiliated
members, prescribe professional qualifications for selection as a
member. The bylaws must require the use of a professional search
firm to identify candidates for membership of unaffiliated members.
The process must allow for commission input in identifying
candidates. The governing body must be composed of:
(1) the chairman of the commission as an ex officio
nonvoting member;
(2) the counsellor as an ex officio voting member
representing residential and small commercial consumer interests;
(3) the chief executive officer [director] of the
independent organization [system operator] as an ex officio voting
member;
(4) six market participants elected by their
respective market segments to serve one-year terms, with:
(A) one representing independent generators;
(B) one representing investor-owned utilities;
(C) one representing power marketers;
(D) one representing retail electric providers;
(E) one representing municipally owned
utilities; and
(F) one representing electric cooperatives [four
representatives of the power generation sector as voting members];
(5) one member representing industrial consumer
interests and elected by the industrial consumer market segment to
serve a one-year term [four representatives of the transmission and
distribution sector as voting members];
(6) one member representing large commercial consumer
interests selected in accordance with the bylaws to serve a
one-year term [four representatives of the power sales sector as
voting members]; and
(7) five members unaffiliated with any market segment
and selected by the other members of the governing body to serve
three-year terms [the following people as voting members, appointed
by the commission:
[(A) one representative of residential
customers;
[(B) one representative of commercial customers;
and
[(C) one representative of industrial
customers].
[The four representatives specified in each of Subdivisions
(4), (5), and (6) shall be selected in a manner that ensures
equitable representation for the various sectors of industry
participants.]
(g-1) The presiding officer of the governing body must be
one of the members described by Subsection (g)(7).
(h) The ERCOT independent system operator may meet the
criteria relating to the other functions of an independent
organization provided by Subsection (a) by adopting procedures and
acquiring resources needed to carry out those functions, consistent
with any rules or orders of the commission.
SECTION __. Subchapter D, Chapter 39, Utilities Code, is
amended by adding Sections 39.1511 and 39.1512 to read as follows:
Sec. 39.1511. PUBLIC MEETINGS OF THE GOVERNING BODY OF AN
INDEPENDENT ORGANIZATION. (a) Meetings of the governing body of an
independent organization certified under Section 39.151 and
meetings of a subcommittee that includes a member of the governing
body must be open to the public. The bylaws of the independent
organization and the rules of the commission may provide for the
governing body or subcommittee to enter into executive session
closed to the public to address sensitive matters such as
confidential personnel information, contracts, lawsuits,
competitively sensitive information, or other information related
to the security of the regional electrical network.
(b) The bylaws of the independent organization and rules of
the commission must ensure that a person interested in the
activities of the independent organization has an opportunity to
obtain at least seven days' advance notice of meetings and the
planned agendas of the meetings and an opportunity to comment on
matters under discussion at the meetings. The bylaws and
commission rules governing meetings of the governing body may
provide for a shorter period of advance notice and for meetings by
teleconference technology for governing body meetings to take
action on urgent matters. The bylaws and rules must require actions
taken on short notice or at teleconference meetings to be ratified
at the governing body's next regular meeting. The notice
requirements may be met by a timely electronic posting on the
Internet.
Sec. 39.1512. DISCLOSURE OF INTEREST IN MATTER BEFORE
INDEPENDENT ORGANIZATION'S GOVERNING BODY; PARTICIPATION IN
DECISION. (a) If a matter comes before the governing body of an
independent organization certified under Section 39.151 and a
member has a direct interest in that matter or is employed by or has
a substantial financial interest in a person who has a direct
interest in that matter, that member shall publicly disclose the
fact of that interest to the governing body at a public meeting of
the body. The member shall recuse himself or herself from the
governing body's deliberations and actions on the matter and may
not vote on the matter or otherwise participate in a governing body
decision on the matter.
(b) A disclosure made under Subsection (a) shall be entered
in the minutes of the meeting at which the disclosure is made.
(c) The fact that a member is recused from a vote or decision
by application of this section does not affect the existence of a
quorum.
SECTION __. An independent organization certified by the
Public Utility Commission of Texas before September 1, 2005, shall
modify the organization's governing body to comply with Subsection
(g), Section 39.151, Utilities Code, as amended by this Act, not
later than September 1, 2006. On or after September 1, 2006, the
Public Utility Commission of Texas may decertify an independent
organization whose governing body does not comply with Subsection
(g), Section 39.151, Utilities Code, as amended by this Act.
SECTION __. Subchapter D, Chapter 39, Utilities Code, is
amended by adding Section 39.1515 to read as follows:
Sec. 39.1515. WHOLESALE ELECTRIC MARKET MONITOR. (a) An
independent organization certified under Section 39.151 shall
contract with an entity selected by the commission to act as the
commission's wholesale electric market monitor to detect and
prevent market manipulation strategies and recommend measures to
enhance the efficiency of the wholesale market.
(b) The independent organization shall provide to the
personnel of the market monitor:
(1) full access to the organization's main operations
center and the organization's records that concern operations,
settlement, and reliability; and
(2) other support and cooperation the commission
determines is necessary for the market monitor to perform the
market monitor's functions.
(c) The independent organization shall use money from the
rate authorized by Section 39.151(e) to pay for the market
monitor's activities.
(d) The commission is responsible for ensuring that the
market monitor has the resources, expertise, and authority
necessary to monitor the wholesale electric market effectively and
shall adopt rules and perform oversight of the market monitor as
necessary. The market monitor shall operate under the supervision
and oversight of the commission. The commission shall retain all
enforcement authority conferred under this title, and this section
may not be construed to confer enforcement authority on the market
monitor or to authorize the commission to delegate the commission's
enforcement authority to the market monitor. The commission by
rule shall define:
(1) the market monitor's monitoring responsibilities,
including reporting obligations and limitations;
(2) the standards for funding the market monitor,
including staffing requirements;
(3) qualifications for personnel of the market
monitor; and
(4) ethical standards for the market monitor and the
personnel of the market monitor.
(e) In adopting rules governing the standards for funding
the market monitor, the commission shall consult with a
subcommittee of the independent organization's governing body to
receive information on how money is or should be spent for
monitoring functions. Rules governing ethical standards must
include provisions designed to ensure that the personnel of the
market monitor are professionally and financially independent from
market participants. The commission shall develop and implement
policies that clearly separate the policymaking responsibilities
of the commission and the monitoring, analysis, and reporting
responsibilities of the market monitor.
(f) The market monitor immediately shall report directly to
the commission any potential market manipulations and any
discovered or potential violations of commission rules or rules of
the independent organization.
(g) The personnel of the market monitor may communicate with
commission staff on any matter without restriction.
(h) The market monitor annually shall submit to the
commission and the independent organization a report that
identifies market design flaws and recommends methods to correct
the flaws. The commission and the independent organization shall
review the report and evaluate whether changes to rules of the
commission or the independent organization should be made.
SECTION ____. Section 39.205, Utilities Code, is amended to
read as follows:
Sec. 39.205. REGULATION OF COSTS FOLLOWING FREEZE PERIOD.
At the conclusion of the freeze period, any remaining costs
associated with nuclear decommissioning obligations continue to be
subject to cost of service rate regulation and shall be included as
a nonbypassable charge to retail customers. The commission may
adopt rules necessary to ensure that money for decommissioning is
prudently collected, managed, and spent for its intended purpose
and that money that remains unspent after decommissioning is
completed is returned to retail customers.
SECTION __. Chapter 51, Utilities Code, is amended by
adding Section 51.011 to read as follows:
Sec. 51.011. RECOVERY OF TAXABLE TELECOM RECEIPT
ASSESSMENT. (a) To the extent an annual assessment is imposed on
each telecommunications provider, including each commercial mobile
service provider, doing business in this state, a certificated
telecommunications provider may, beginning June 1, 2005, recover
from the provider's customers, an assessment imposed on the
provider under this title.
(b) A certificated telecommunications provider may recover
only the amount of the assessment imposed and may recover the
assessment through a monthly billing process.
SECTION __. Section 52.006, Utilities Code, is amended by
adding Subsection (e) to read as follows:
(e) The commission may include with the report required by
this section any other report required to be made to the legislature
before January 15 of an odd-numbered year. A report included with
the report required by this section must be clearly distinct from
the report required by this section.