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