Amend Amendment No. 1 by King to CSSB 408 as follows:                        
	(1)  In item (12) of the amendment, in the recital to the 
unnumbered SECTION that amends Section 39.151, Utilities Code (page 
2, line 31), strike "Subsections (d-1) and (g-1)" and substitute 
"Subsection (g-1)".
	(2)  In item (12) of the amendment, strike Subsections (c), 
(d), (d-1), and (e), Section 39.151, Utilities Code, as amended by 
the unnumbered SECTION (page 3, line 9, through page 5, line 18), 
and substitute the following:
	(c)  The commission shall certify an independent organization 
or organizations to perform the functions prescribed by this 
section.  The commission has complete authority to oversee, require 
the commission's approval of, and order modifications of any part 
of the finances, budget, or operations of an independent 
organization certified under this section.
	(d)  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.  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 organization shall fully cooperate with the 
commission in the commission's oversight and investigatory 
functions.  The commission may decertify an organization that does 
not adequately perform the organization's functions or duties or 
does not comply with this section.
	(e)  The commission by rule shall require an independent 
organization certified under this section to provide the commission 
with sufficiently detailed information to allow the commission to 
review and approve or disapprove the independent organization's 
budget for cost efficiencies and for the reasonableness and 
necessity of budget items.  The rules must include a timetable for 
an independent organization to file its budget for review under the 
rules.  The commission's budget review must include a review of 
salaries, employee benefits, and the independent organization's 
use of debt financing.  After determining the overall 
reasonableness and necessity of an independent organization's 
budget, the [The] commission, in the same proceeding, may authorize 
the [an] independent organization [that is certified under this 
section] to charge [a reasonable and competitively neutral rate] to 
wholesale buyers and sellers a reasonable and competitively neutral 
rate determined by the commission to allow [cover] the independent 
organization a reasonable opportunity to take in a reasonable and 
necessary amount of revenue, as determined by the commission in the 
budget review process.  The independent organization may change the 
rate established by the commission in the budget review process 
only with the commission's approval.  On the commission's own 
initiative or on receiving a complaint, the commission may inquire 
into the reasonableness of an independent organization's budget or 
rate [costs].