87R12268 CXP-D
 
  By: Miles S.B. No. 1624
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the governing body of the independent organization
  certified to manage the ERCOT power region.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 39.151, Utilities Code, is amended by
  amending Subsections (g) and (g-1) and adding Subsection (g-2) to
  read as follows:
         (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 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; and
               (2)  eight members appointed by the governor with the
  advice and consent of the senate, with:
                     (A)  six members representing various market
  segments; and
                     (B)  two members representing consumer interests
  [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;
                     [(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 governor shall select a presiding officer of the
  governing body from among its members [of the governing body must be
  one of the members described by Subsection (g)(7)].
         (g-2)  Members of the governing body of an independent
  organization certified under this section serve staggered terms of
  four years, with four members' terms expiring February 1 of each
  odd-numbered year. Not later than the 30th day after the date a
  member of the governing body's term expires, the governor shall
  appoint a replacement in the same manner as the original
  appointment. If a vacancy occurs on the governing body, the
  governor shall appoint a successor in the same manner as the
  original appointment to serve for the remainder of the unexpired
  term. The governor shall appoint the successor not later than the
  30th day after the date the vacancy occurs.
         SECTION 2.  (a) Not later than December 1, 2021, the
  governor shall comply with Section 39.151, Utilities Code, as
  amended by this Act, by appointing members to the governing body of
  an independent organization certified under Section 39.151,
  Utilities Code, by the Public Utility Commission of Texas before
  September 1, 2021. To establish staggered terms, the governor
  shall designate four initial appointees to serve terms expiring
  February 1, 2023, and four initial appointees to serve terms
  expiring February 1, 2025.
         (b)  After September 1, 2022, the Public Utility Commission
  of Texas may decertify an independent organization whose governing
  body does not comply with Section 39.151, Utilities Code, as
  amended by this Act.
         SECTION 3.  This Act takes effect September 1, 2021.