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A BILL TO BE ENTITLED
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AN ACT
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relating to the governing body of the independent organization |
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certified to manage the ERCOT power region. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.151, Utilities Code, is amended by |
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amending Subsections (g) and (g-1) and adding Subsections (g-2), |
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(g-3), and (g-4) to read as follows: |
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(g) The commission may certify an independent organization |
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under this section only if the [To maintain certification as an |
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independent organization under this section, an] organization's |
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governing body is [must be] composed of 15 members appointed as |
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follows [persons specified by this section and selected in |
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accordance with formal bylaws or protocols of the organization. |
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The bylaws or protocols must be approved by the commission and must |
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reflect the input of the commission. The bylaws must specify the |
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process by which appropriate stakeholders elect members and, for |
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unaffiliated members, prescribe professional qualifications for |
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selection as a member. The bylaws must require the use of a |
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professional search firm to identify candidates for membership of |
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unaffiliated members. The process must allow for commission input |
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in identifying candidates. The governing body must be composed |
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of]: |
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(1) five members appointed by the governor [the |
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chairman of the commission as an ex officio nonvoting member]; |
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(2) five members appointed by the lieutenant governor |
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[the counsellor as an ex officio voting member representing |
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residential and small commercial consumer interests]; and |
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(3) five members appointed by the speaker of the house |
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of representatives [the chief executive officer of the independent |
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organization as an ex officio voting member; |
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[(4) six market participants elected by their |
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respective market segments to serve one-year terms, with: |
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[(A) one representing independent generators; |
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[(B) one representing investor-owned utilities; |
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[(C) one representing power marketers; |
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[(D) one representing retail electric providers; |
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[(E) one representing municipally owned |
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utilities; and |
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[(F) one representing electric cooperatives; |
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[(5) one member representing industrial consumer |
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interests and elected by the industrial consumer market segment to |
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serve a one-year term; |
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[(6) one member representing large commercial |
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consumer interests selected in accordance with the bylaws to serve |
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a one-year term; and |
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[(7) five members unaffiliated with any market segment |
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and selected by the other members of the governing body to serve |
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three-year terms]. |
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(g-1) The governing body of an independent organization |
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certified under this section shall elect a presiding officer from |
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among its members [of the governing body must be one of the members |
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described by Subsection (g)(7)]. |
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(g-2) Members of the governing body of an independent |
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organization certified under this section serve staggered terms of |
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two years, with seven members' terms expiring February 1 of each |
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odd-numbered year and eight members' terms expiring February 1 of |
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each even-numbered year. Not later than the 30th day after the date |
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a member of the governing body's term expires, the appropriate |
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appointing authority shall appoint a replacement in the same manner |
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as the original appointment. If a vacancy occurs on the governing |
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body, the appropriate appointing authority shall appoint a |
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successor in the same manner as the original appointment to serve |
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for the remainder of the unexpired term. The appropriate |
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appointing authority shall appoint the successor not later than the |
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30th day after the date the vacancy occurs. |
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(g-3) To qualify for appointment as a member of the |
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governing body under Subsection (g), a person must be a resident of |
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this state. |
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(g-4) To maintain certification as an independent |
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organization under this section, an organization's chief executive |
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officer must be a resident of this state. |
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SECTION 2. (a) Not later than December 1, 2021, the |
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governor, lieutenant governor, and speaker of the house of |
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representatives shall comply with Section 39.151, Utilities Code, |
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as amended by this Act, by appointing members to the governing body |
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of an independent organization certified under Section 39.151, |
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Utilities Code, by the Public Utility Commission of Texas before |
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September 1, 2021. To establish staggered terms, the governor |
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shall designate seven initial appointees to serve terms expiring |
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February 1 of the next odd-numbered year and eight initial |
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appointees to serve terms expiring February 1 of the next |
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even-numbered year. |
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(b) An independent organization certified under Section |
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39.151, Utilities Code, by the Public Utility Commission of Texas |
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before September 1, 2021, shall ensure that the chief executive |
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officer of the organization is a resident of this state as soon as |
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practicable, but not later than September 1, 2022. |
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(c) After September 1, 2022, the Public Utility Commission |
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of Texas may decertify an independent organization whose governing |
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body or chief executive officer does not comply with Section |
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39.151, Utilities Code, as amended by this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |