By: Turner of Harris H.B. No. 1695

A BILL TO BE ENTITLED

AN ACT

relating to the requirement that electric utilities create and implement a plan for infrastructure improvement and maintenance.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 38, Utilities Code, is amended by adding Subchapter E to read as follows:

SUBCHAPTER E. INFRASTRUCTURE IMPROVEMENT AND MAINTENANCE PLAN

Sec. 38.101. PLAN FOR INFRASTRUCTURE IMPROVEMENT AND MAINTENANCE. (a) Not later than January 1, 2010, each electric utility shall file with the commission a plan for infrastructure improvement and maintenance that minimizes the utility's risk of experiencing an extended power outage during severe weather.

(b) The commission shall prescribe the details required to be included in each electric utility's plan submitted under Subsection (a), based on:

(1) the utility's susceptibility to specific types of severe weather likely to occur in the utility's service area;

(2) the age of the utility's infrastructure;

(3) the utility's history of extended power outages caused by severe weather; and

(4) the potential improvements in preparation and response that are available to the utility.

(c) At a minimum, the commission shall require that each utility's plan submitted under Subsection (a) include:

(1) an established vegetation management cycle for the clearing of trees, tree limbs, and other vegetative growth from utility line easements and utility structures;

(2) a customer outreach program that educates property owners on proper vegetation management near electric utility structures;

(3) a program for the inspection of transmission structures;

(4) a system for identifying areas that are susceptible to damage during severe weather and modifying transmission structures in those areas, including identifying and replacing wooden poles in those areas with poles made of more durable materials;

(5) a system for designating high-load transmission and distribution areas and identifying potential improvements to infrastructure to prevent damage during severe weather;

(6) a system for determining the cost-effectiveness of placing future electricity lines underground;

(7) a plan that allows for or requires the expansion or installation of underground utility infrastructure to be coordinated with the repair, expansion, or installation activities of other owners of underground facilities, including municipalities, gas utilities, and pipeline companies;

(8) a plan for the use of distributed generation technologies and advanced meter technologies that prevent, detect, and report the failure of grid facilities and assist in the repair of those facilities;

(9) a priority plan for the restoration of critical facilities in areas that are particularly prone to severe weather, including:

(A) facilities belonging to emergency response providers;

(B) hospitals;

(C) water and wastewater treatment facilities; and

(D) municipal service facilities;

(10) a plan to inform state and local officials of an extended power outage, the utility's restoration efforts, and the expected duration and severity of the outage; and

(11) a plan to insure that the utility has a sufficient number of trained and skilled employees to insure the adequate maintenance and reliability of the utility's infrastructure, including a plan to meet both short- and long-term personnel needs.

(d) For each specific program or project included in a plan submitted under Subsection (a), the utility shall include sufficient detail to allow the commission to accept, modify, or reject an individual program or project based on factors such as anticipated cost or benefit.

Sec. 38.102. APPROVAL OF PLAN; HEARING. (a) On the filing of a plan under Section 38.101, the commission shall provide notice to interested parties and an opportunity for a hearing. An entity with facilities attached to the infrastructure of an electric utility submitting a plan shall be included in the notice and opportunity for hearing and shall be permitted to submit information regarding factors such as anticipated cost or benefit as provided in Section 38.101(d).

(b) The commission shall review and approve a new plan or an updated plan not later than the 30th day after the date the commission provides the notice required by Subsection (a), unless a request for a hearing is filed before the end of that period.

(c) If a request for a hearing is filed within the period prescribed by Subsection (b), the commission shall hold a hearing on the plan and shall issue an order approving the plan, approving the plan with modifications, or rejecting the entire plan, not later than the 120th day after the date the plan is filed. If the commission does not issue an order regarding a plan within that 120-day period, the plan is considered approved.

(d) If the commission rejects an electric utility's plan for infrastructure improvement and maintenance, or approves the plan with modifications, the commission shall include in the order a detailed explanation of the reasons the plan was rejected or modified. If the commission rejects an electric utility's plan, the electric utility shall file a new plan and seek commission approval of the new plan. If the commission approves a utility's plan with modifications, the electric utility may:

(1) accept the modifications and proceed under the plan as modified; or

(2) withdraw its plan, file a new plan, and seek commission approval of the new plan.

(e) The commission's approval of a plan, or approval of a plan with modifications that are accepted by an electric utility, does not:

(1) preclude the electric utility from filing a new plan before the utility is required to update an approved plan under Section 38.103; or

(2) affect the duty of the electric utility to prove in a ratemaking proceeding that expenditures made pursuant to the plan were reasonable, necessary, and prudently incurred.

(f) An expenditure made by an electric utility pursuant to a plan filed under this section may be recovered by the utility in a ratemaking proceeding under Chapter 36.

Sec. 38.103. RENEWAL AND REVIEW OF PLAN. (a) An electric utility that files a plan for infrastructure improvement and maintenance required by Section 38.101 shall:

(1) file with the commission a semiannual report detailing the status of the programs and projects detailed in the plan; and

(2) file an updated plan with the commission every six years for the commission's approval.

(b) To prepare an electric utility for future severe weather, the commission shall evaluate the effectiveness of an electric utility's plan for infrastructure improvement and maintenance after each occurrence of severe weather that affects the utility's service area.

SECTION 2. (a) The Public Utility Commission of Texas shall adopt rules consistent with this Act not later than October 1, 2009.

(b) Not later than January 1, 2010, each electric utility shall file with the Public Utility Commission of Texas a proposed plan for infrastructure and improvement as required by Subchapter E, Chapter 38, Utilities Code, as added by this Act.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.