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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 Subsection (g) and adding Subsections (g-2), (g-3), and |
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(g-4) to read as follows: |
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(g) To maintain certification as an independent |
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organization under this section, an organization's governing body |
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must be composed of persons specified by this section [and selected |
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in 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) the chairman of the commission as an ex officio |
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nonvoting member; |
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(2) the counsellor as an ex officio voting member |
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representing residential and small commercial consumer interests; |
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(3) 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 consumer |
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interests selected in accordance with the bylaws to serve a |
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one-year term; and |
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(7) five members who are informed residential |
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customers whose primary residences have a diverse range of property |
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values, with: |
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(A) one member whose primary residence has a |
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property value of less than $75,000; |
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(B) one member whose primary residence has a |
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property value of at least $75,000 but less than $125,000; |
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(C) one member whose primary residence has a |
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property value of at least $125,000 but less than $175,000; |
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(D) one member whose primary residence has a |
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property value of at least $175,000 but less than $225,000; and |
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(E) one member whose primary residence has a |
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property value of at least $225,000 [five members unaffiliated with |
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any market segment and selected by the other members of the |
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governing body to serve three-year terms]. |
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(g-2) Members of the organization's governing body required |
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by Subsections (g)(4), (5), and (6) must be selected in accordance |
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with formal bylaws or protocols of the organization. The bylaws or |
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protocols must be approved by the commission and must reflect the |
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input of the commission. The bylaws must specify the process by |
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which appropriate stakeholders elect members and, for unaffiliated |
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members, prescribe professional qualifications for selection as a |
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member. The bylaws must require the use of a professional search |
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firm to identify candidates for membership of unaffiliated members. |
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The process must allow for commission input in identifying |
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candidates. |
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(g-3) To qualify to serve as a member of the governing body |
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under Subsection (g)(4), (5), (6), or (7), a person must be a |
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resident of 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) An independent organization certified under |
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Section 39.151, Utilities Code, by the Public Utility Commission of |
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Texas before September 1, 2021, shall hold elections and select new |
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members as needed to modify the organization's governing body to |
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comply with Section 39.151, Utilities Code, as amended by this Act, |
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as soon as practicable, but not later than September 1, 2022. |
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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 complies with Section 39.151, Utilities |
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Code, as amended by this Act, as soon as practicable, but not later |
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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 does not comply with Section 39.151, Utilities Code, as |
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amended by this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |