| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to a cybersecurity monitor for certain electric utilities. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter E, Chapter 36, Utilities Code, is |
|
|
amended by adding Section 36.213 to read as follows: |
|
|
Sec. 36.213. ADJUSTMENT FOR CYBERSECURITY MONITOR COSTS FOR |
|
|
CERTAIN UTILITIES. (a) This section does not apply to an electric |
|
|
utility that operates solely outside of ERCOT and has not elected to |
|
|
participate in the cybersecurity monitor program under Section |
|
|
39.1516. |
|
|
(b) The commission, on its own motion or on the petition of |
|
|
an electric utility, shall allow the electric utility to recover |
|
|
reasonable and necessary costs incurred in connection with |
|
|
activities under Section 39.1516. |
|
|
SECTION 2. Section 39.002, Utilities Code, is amended to |
|
|
read as follows: |
|
|
Sec. 39.002. APPLICABILITY. This chapter, other than |
|
|
Sections 39.1516, 39.155, 39.157(e), 39.203, [39.903,] 39.904, |
|
|
39.9051, 39.9052, and 39.914(e), does not apply to a municipally |
|
|
owned utility or an electric cooperative. Sections 39.157(e), |
|
|
39.203, and 39.904, however, apply only to a municipally owned |
|
|
utility or an electric cooperative that is offering customer |
|
|
choice. If there is a conflict between the specific provisions of |
|
|
this chapter and any other provisions of this title, except for |
|
|
Chapters 40 and 41, the provisions of this chapter control. |
|
|
SECTION 3. Subchapter D, Chapter 39, Utilities Code, is |
|
|
amended by adding Section 39.1516 to read as follows: |
|
|
Sec. 39.1516. CYBERSECURITY MONITOR. (a) In this section, |
|
|
"monitored utility" means: |
|
|
(1) a transmission and distribution utility; |
|
|
(2) a corporation described in Section 32.053; |
|
|
(3) a municipally owned utility or electric |
|
|
cooperative that owns or operates equipment or facilities in the |
|
|
ERCOT power region to transmit electricity at 60 or more kilovolts; |
|
|
or |
|
|
(4) an electric utility, municipally owned utility, or |
|
|
electric cooperative that operates solely outside the ERCOT power |
|
|
region that has elected to participate under Subsection (d). |
|
|
(b) The commission and the independent organization |
|
|
certified under Section 39.151 shall contract with an entity |
|
|
selected by the commission to act as the commission's cybersecurity |
|
|
monitor to: |
|
|
(1) manage a comprehensive cybersecurity outreach |
|
|
program for monitored utilities; |
|
|
(2) meet regularly with monitored utilities to discuss |
|
|
emerging threats, best business practices, and training |
|
|
opportunities; |
|
|
(3) review self-assessments voluntarily disclosed by |
|
|
monitored utilities of cybersecurity efforts; |
|
|
(4) research and develop best business practices |
|
|
regarding cybersecurity; and |
|
|
(5) report to the commission on monitored utility |
|
|
cybersecurity preparedness. |
|
|
(c) The independent organization certified under Section |
|
|
39.151 shall provide to the cybersecurity monitor any access, |
|
|
information, support, and cooperation that the commission |
|
|
determines is necessary for the monitor to perform the functions |
|
|
described by Subsection (b). The independent organization shall |
|
|
use funds from the fee authorized by Section 39.151(e) to pay for |
|
|
the cybersecurity monitor's activities. |
|
|
(d) An electric utility, municipally owned utility, or |
|
|
electric cooperative that operates solely outside the ERCOT power |
|
|
region may elect to participate in the cybersecurity monitor |
|
|
program or to discontinue participation. The commission shall |
|
|
adopt rules establishing: |
|
|
(1) procedures for an electric utility, municipally |
|
|
owned utility, or electric cooperative to notify the commission, |
|
|
the independent organization certified under Section 39.151, and |
|
|
the cybersecurity monitor that the utility or cooperative elects to |
|
|
participate or to discontinue participation; and |
|
|
(2) a mechanism to require an electric utility, |
|
|
municipally owned utility, or electric cooperative that elects to |
|
|
participate to contribute to the costs incurred by the independent |
|
|
organization under this section. |
|
|
(e) The cybersecurity monitor shall operate under the |
|
|
supervision and oversight of the commission. |
|
|
(f) The commission shall adopt rules as necessary to |
|
|
implement this section and may enforce the provisions of this |
|
|
section in the manner provided by this title. This section does not |
|
|
grant enforcement authority to the cybersecurity monitor or |
|
|
authorize the commission to delegate the commission's enforcement |
|
|
authority to the cybersecurity monitor. This section does not |
|
|
grant enforcement authority to the commission beyond authority |
|
|
explicitly provided for in this title. |
|
|
(g) The staff of the cybersecurity monitor may communicate |
|
|
with commission staff about any cybersecurity information without |
|
|
restriction. Commission staff shall maintain the confidentiality |
|
|
of the cybersecurity information. Notwithstanding any other law, |
|
|
commission staff may not disclose information obtained under this |
|
|
section in an open meeting or through a response to a public |
|
|
information request. |
|
|
(h) Information written, produced, collected, assembled, or |
|
|
maintained under Subsection (b), (c), or (g) is confidential and |
|
|
not subject to disclosure under Chapter 552, Government Code. A |
|
|
governmental body is not required to conduct an open meeting under |
|
|
Chapter 551, Government Code, to deliberate a matter described by |
|
|
Subsection (b), (c), or (g). |
|
|
SECTION 4. Section 39.402(a), Utilities Code, is amended to |
|
|
read as follows: |
|
|
(a) Until the date on which an electric utility subject to |
|
|
this subchapter is authorized by the commission to implement |
|
|
customer choice, the rates of the utility shall be regulated under |
|
|
traditional cost of service regulation and the utility is subject |
|
|
to all applicable regulatory authority prescribed by this subtitle |
|
|
and Subtitle A, including Chapters 14, 32, 33, 36, and 37. Until |
|
|
the date on which an electric utility subject to this subchapter |
|
|
implements customer choice, the provisions of this chapter, other |
|
|
than this subchapter, Sections 39.1516, 39.904, and 39.905, and the |
|
|
provisions relating to the duty to obtain a permit from the Texas |
|
|
Commission on Environmental Quality for an electric generating |
|
|
facility and to reduce emissions from an electric generating |
|
|
facility, shall not apply to that utility. That portion of any |
|
|
commission order entered before September 1, 2001, to comply with |
|
|
this subchapter shall be null and void. |
|
|
SECTION 5. Section 39.452(d), Utilities Code, is amended to |
|
|
read as follows: |
|
|
(d) Until the date on which an electric utility subject to |
|
|
this subchapter implements customer choice: |
|
|
(1) the provisions of this chapter do not apply to that |
|
|
electric utility, other than this subchapter, Sections 39.1516, |
|
|
39.904, and 39.905, the provisions relating to the duty to obtain a |
|
|
permit from the Texas Commission on Environmental Quality for an |
|
|
electric generating facility and to reduce emissions from an |
|
|
electric generating facility, and the provisions of Subchapter G |
|
|
that pertain to the recovery and securitization of hurricane |
|
|
reconstruction costs authorized by Sections 39.458-39.463; and |
|
|
(2) the electric utility is not subject to a rate |
|
|
freeze and, subject to the limitation provided by Subsection (b), |
|
|
may file for rate changes under Chapter 36 and for approval of one |
|
|
or more of the rate rider mechanisms authorized by Sections 39.454 |
|
|
and 39.455. |
|
|
SECTION 6. Section 39.502(b), Utilities Code, is amended to |
|
|
read as follows: |
|
|
(b) Until the date on which an electric utility subject to |
|
|
this subchapter implements customer choice, the provisions of this |
|
|
chapter, other than this subchapter and Sections 39.1516, 39.904, |
|
|
and 39.905, do not apply to that utility. |
|
|
SECTION 7. Section 39.552(b), Utilities Code, is amended to |
|
|
read as follows: |
|
|
(b) Until the date on which an electric utility subject to |
|
|
this subchapter implements customer choice, the provisions of this |
|
|
chapter, other than this subchapter and Sections 39.1516, 39.904, |
|
|
and 39.905, do not apply to that utility. |
|
|
SECTION 8. Section 40.001(b), Utilities Code, is amended to |
|
|
read as follows: |
|
|
(b) Except as specifically provided in this subsection, |
|
|
Chapter 39 does not apply to a river authority operating a steam |
|
|
generating plant on or before January 1, 1999, or a corporation |
|
|
authorized by Chapter 152, Water Code, or Section 32.053. A river |
|
|
authority operating a steam generating plant on or before January |
|
|
1, 1999, is subject to Sections 39.051(a)-(c), 39.108, 39.1516, |
|
|
39.155, 39.157(e), and 39.203. |
|
|
SECTION 9. Section 40.004, Utilities Code, is amended to |
|
|
read as follows: |
|
|
Sec. 40.004. JURISDICTION OF COMMISSION. Except as |
|
|
specifically otherwise provided in this chapter, the commission has |
|
|
jurisdiction over municipally owned utilities only for the |
|
|
following purposes: |
|
|
(1) to regulate wholesale transmission rates and |
|
|
service, including terms of access, to the extent provided by |
|
|
Subchapter A, Chapter 35; |
|
|
(2) to regulate certification of retail service areas |
|
|
to the extent provided by Chapter 37; |
|
|
(3) to regulate rates on appeal under Subchapters D |
|
|
and E, Chapter 33, subject to Section 40.051(c); |
|
|
(4) to establish a code of conduct as provided by |
|
|
Section 39.157(e) applicable to anticompetitive activities and to |
|
|
affiliate activities limited to structurally unbundled affiliates |
|
|
of municipally owned utilities, subject to Section 40.054; |
|
|
(5) to establish terms and conditions for open access |
|
|
to transmission and distribution facilities for municipally owned |
|
|
utilities providing customer choice, as provided by Section 39.203; |
|
|
(6) [to require collection of the nonbypassable fee
|
|
|
established under Section 39.903(b) and] to administer the |
|
|
renewable energy credits program under Section 39.904(b) and the |
|
|
natural gas energy credits program under Section 39.9044(b); [and] |
|
|
(7) to require reports of municipally owned utility |
|
|
operations only to the extent necessary to: |
|
|
(A) enable the commission to determine the |
|
|
aggregate load and energy requirements of the state and the |
|
|
resources available to serve that load; or |
|
|
(B) enable the commission to determine |
|
|
information relating to market power as provided by Section 39.155; |
|
|
and |
|
|
(8) to evaluate and monitor the cybersecurity |
|
|
preparedness of a municipally owned utility described by Section |
|
|
39.1516(a)(3) or (4). |
|
|
SECTION 10. Section 41.004, Utilities Code, is amended to |
|
|
read as follows: |
|
|
Sec. 41.004. JURISDICTION OF COMMISSION. Except as |
|
|
specifically provided otherwise in this chapter, the commission has |
|
|
jurisdiction over electric cooperatives only as follows: |
|
|
(1) to regulate wholesale transmission rates and |
|
|
service, including terms of access, to the extent provided in |
|
|
Subchapter A, Chapter 35; |
|
|
(2) to regulate certification to the extent provided |
|
|
in Chapter 37; |
|
|
(3) to establish a code of conduct as provided in |
|
|
Section 39.157(e) subject to Section 41.054; |
|
|
(4) to establish terms and conditions, but not rates, |
|
|
for open access to distribution facilities for electric |
|
|
cooperatives providing customer choice, as provided in Section |
|
|
39.203; [and] |
|
|
(5) to require reports of electric cooperative |
|
|
operations only to the extent necessary to: |
|
|
(A) ensure the public safety; |
|
|
(B) enable the commission to satisfy its |
|
|
responsibilities relating to electric cooperatives under this |
|
|
chapter; |
|
|
(C) enable the commission to determine the |
|
|
aggregate electric load and energy requirements in the state and |
|
|
the resources available to serve that load; or |
|
|
(D) enable the commission to determine |
|
|
information relating to market power as provided in Section 39.155; |
|
|
and |
|
|
(6) to evaluate and monitor the cybersecurity |
|
|
preparedness of an electric cooperative described by Section |
|
|
39.1516(a)(3) or (4). |
|
|
SECTION 11. To the extent of any conflict, this Act prevails |
|
|
over another Act of the 86th Legislature, Regular Session, 2019, |
|
|
relating to nonsubstantive additions to and corrections in enacted |
|
|
codes. |
|
|
SECTION 12. This Act takes effect September 1, 2019. |