81R3429 TRH-F
 
  By: Turner of Harris H.B. No. 630
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation and governing bodies of independent
  organizations that govern power regions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 39.151, Utilities Code, is amended by
  amending Subsections (e) and (g) and by adding Subsection (g-2) to
  read as follows:
         (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
  may require prior approval of the use of debt financing by 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 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
  voting [nonvoting] member;
               (1-a)  the other two commissioners as ex officio
  nonvoting members;
               (2)  the counsellor as an ex officio voting member
  representing residential and small commercial consumer interests;
               (3)  the chief executive officer of the independent
  organization as an ex officio voting member;
               (4)  four [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; and
                     (D) [(E)]  one representing municipally owned
  utilities and electric cooperatives; [and
                     [(F)  one representing electric cooperatives;]
               (5)  one member representing industrial consumer
  interests and elected by the industrial consumer market segment to
  serve a one-year term;
               (6)  one member representing large commercial consumer
  interests selected in accordance with the bylaws to serve a
  one-year term; and
               (7)  five members unaffiliated with any market segment,
  nominated [and selected] by the other members of the governing body
  and selected by the commission to serve three-year terms.
         (g-2)  The commission may require removal of a member of the
  governing body if the member:
               (1)  does not have at the time of appointment or
  maintain during service the qualifications required by this section
  and by the formal bylaws or protocols of the organization;
               (2)  fails to comply with the requirements of Section
  39.1512; or
               (3)  fails to impartially and adequately discharge the
  member's duties and responsibilities.
         SECTION 2.  An independent organization certified by the
  Public Utility Commission of Texas before September 1, 2009, shall
  modify the organization's governing body to comply with Section
  39.151(g), Utilities Code, as amended by this Act, not later than
  September 1, 2010. On or after September 1, 2010, the Public
  Utility Commission of Texas may decertify an independent
  organization whose governing body does not comply with Section
  39.151(g), Utilities Code, as amended by this Act.
         SECTION 3.  This Act takes effect September 1, 2009.