By: Solomons H.B. No. 2421

A BILL TO BE ENTITLED

AN ACT

relating to the independent organization certified to perform certain functions for a power region.

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

SECTION 1. Section 12.005, Utilities Code, is amended to read as follows:

Sec. 12.005. APPLICATION OF SUNSET ACT. (a) The Public Utility Commission of Texas is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter or by Chapter 39, the commission is abolished and this title expires September 1, 2011.

(b) The Sunset Advisory Commission shall conduct a special-purpose review of the Electric Reliability Council of Texas as part of the commission's review of the Public Utility Commission of Texas for the 82nd Legislature. The sunset commission's report to the 82nd Legislature regarding the review must include an assessment of the governance, management, and operating structure of the council and the council's compliance with the duties and requirements placed on it by the legislature and the Public Utility Commission of Texas. The sunset commission's report under this subsection may include any recommendations it considers appropriate. This subsection expires September 1, 2011.

SECTION 2. Sections 39.151(g) and (g-1), Utilities Code, are amended to read as follows:

(g) To maintain certification as an independent organization under this section, an organization must operate a regional electrical network that is located entirely in this state. The [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 the professional qualifications necessary for selection as a member of the organization and[. 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) each commissioner [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 of the independent organization 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;

[(5)] one member representing industrial consumer interests and elected by the industrial consumer market segment to serve a one-year term;

(5) [(6)] one member representing large commercial consumer interests selected in accordance with the bylaws to serve a one-year term; and

(6) nine [(7) five] members unaffiliated with any market segment and selected by the other members of the governing body to serve three-year terms.

(g-1) The presiding officer of the governing body must be one of the members described by Subsection (g)(6) [(g)(7)].

SECTION 3. Not later than September 1, 2010, an independent organization that is certified by the commission 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. The commission may decertify an independent organization that does not comply with that section by September 1, 2010.

SECTION 4. This Act takes effect September 1, 2009.