87R11933 CXP-F
 
  By: Hancock S.B. No. 2
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to independent organizations certified to manage power
  regions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 39.151, Utilities Code, is amended by
  amending Subsections (d), (g), and (g-1) and adding Subsection
  (g-2) to read as follows:
         (d)  The commission shall adopt and enforce rules relating to
  the reliability of the regional electrical network and accounting
  for the production and delivery of electricity among generators and
  all other market participants, or may delegate to an independent
  organization responsibilities for adopting [establishing] or
  enforcing such rules. Rules [Any such rules] adopted by an
  independent organization and [any] enforcement actions taken by the
  organization under delegated authority from the commission are
  subject to commission oversight and review and may not take effect
  before receiving commission approval. An independent organization
  certified by the commission is directly responsible and accountable
  to the commission. The commission has complete authority to
  oversee and investigate the organization's finances, budget, and
  operations as necessary to ensure the organization's
  accountability and to ensure that the organization adequately
  performs the organization's functions and duties. The organization
  shall fully cooperate with the commission in the commission's
  oversight and investigatory functions. The commission may take
  appropriate action against an organization that does not adequately
  perform the organization's functions or duties or does not comply
  with this section, including decertifying the organization or
  assessing an administrative penalty against the organization. The
  commission by rule shall adopt procedures governing
  decertification of an independent organization, selecting and
  certifying a successor organization, and transferring assets to the
  successor organization to ensure continuity of operations in the
  region. The commission may not implement, by order or by rule, a
  requirement that is contrary to an applicable federal law or rule.
         (g)  To maintain certification as an independent
  organization under this section, 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 professional qualifications for
  selection as a member. The bylaws must require that every member of
  the governing body, other than members described by Subdivisions
  (1) and (2), be a resident of this state. 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)  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,
  elected by a majority vote of the members of this market segment who
  each own and control five percent or more of the installed
  generation capacity located in the power region;
                     (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;
               (6)  one member representing large commercial consumer
  interests selected in accordance with the bylaws to serve a
  one-year term; and
               (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 bylaws of an independent organization must
  require that the [The] presiding officer of the governing body must
  be:
               (1)  one of the members described by Subsection (g)(7);
  and
               (2)  selected by the governor with the advice and
  consent of the senate.
         (g-2)  To maintain certification as an independent
  organization under this section, the organization's governing body
  must establish and implement a formal process for adopting new
  protocols or revisions to existing protocols. The process must
  require that new or revised protocols may not take effect before
  receiving commission approval.
         SECTION 2.  An independent organization certified under
  Section 39.151, Utilities Code, by the Public Utility Commission of
  Texas before September 1, 2021, shall modify the organization to
  comply with Section 39.151, Utilities Code, as amended by this Act,
  not later than September 1, 2021. After September 1, 2021, the
  Public Utility Commission of Texas may decertify an independent
  organization that does not comply with Section 39.151, Utilities
  Code, as amended by this Act.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.