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A BILL TO BE ENTITLED
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AN ACT
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relating to electric service quality and reliability. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 36.402, Utilities Code, is amended by |
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adding Subsection (b-1) to read as follows: |
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(b-1) Notwithstanding Subsection (b), if an electric |
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utility fails to comply with the standards required by Section |
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38.006 and the utility's system is damaged by a weather-related |
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event or natural disaster, the commission may at the utility's next |
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rate proceeding reduce the utility's return on equity for |
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infrastructure used or installed to repair or replace the damaged |
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portion of the system. |
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SECTION 2. Section 38.005(b), Utilities Code, is amended to |
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read as follows: |
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(b) The commission may take appropriate enforcement action |
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under this section, including action against a utility, if any of |
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the utility's feeders with 10 or more customers has had a SAIDI or |
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SAIFI average that is more than 200 [300] percent greater than the |
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system average of all feeders during any two-year period[, |
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beginning in the year 2000]. In determining the appropriate |
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enforcement action, the commission shall consider: |
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(1) the feeder's operating and maintenance history; |
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(2) the cause of each interruption in the feeder's |
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service; |
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(3) the duration of each interruption in the feeder's |
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service; |
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(4) any action taken by a utility to address the |
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feeder's performance; |
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(5) [(4)] the estimated cost and benefit of |
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remediating a feeder's performance; and |
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(6) [(5)] any other relevant factor as determined by |
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the commission. |
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SECTION 3. Subchapter A, Chapter 38, Utilities Code, is |
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amended by adding Section 38.006 to read as follows: |
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Sec. 38.006. STRUCTURAL INTEGRITY STANDARDS FOR |
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TRANSMISSION AND DISTRIBUTION POLES. (a) This section applies |
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only to an electric utility, municipally owned utility, or electric |
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cooperative that operates transmission or distribution assets. |
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(b) The commission by rule shall adopt standards for the |
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structural integrity of transmission and distribution poles. |
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(c) The standards adopted under this section must: |
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(1) require an electric utility, municipally owned |
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utility, or electric cooperative to: |
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(A) inspect, maintain, remediate, and replace |
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transmission and distribution poles as necessary on a timeline |
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established by the commission; and |
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(B) maintain records of the actions described by |
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Paragraph (A); |
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(2) account for geographic and weather |
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characteristics of this state; |
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(3) consider national guidelines such as the National |
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Electrical Safety Code and guidelines developed by the Rural |
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Utilities Service of the United States Department of Agriculture; |
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(4) establish a classification system to assess the |
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serviceability of transmission and distribution poles that |
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accounts for pole maintenance and extending the service life of |
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transmission and distribution poles; and |
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(5) consider the characteristics of electric utility, |
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municipally owned utility, and electric cooperative transmission |
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and distribution systems throughout this state. |
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(d) Not later than May 1 of each year, each electric |
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utility, municipally owned utility, and electric cooperative shall |
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submit to the commission a report on: |
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(1) the implementation of the utility's or |
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cooperative's transmission and distribution pole maintenance |
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schedule; |
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(2) the results of the utility's or cooperative's |
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inspection of transmission and distribution poles, including the |
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number of poles inspected and any remediation or replacement action |
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taken; and |
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(3) any other information the commission requires. |
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SECTION 4. The heading to Subchapter E, Chapter 38, |
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Utilities Code, is amended to read as follows: |
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SUBCHAPTER E. INFRASTRUCTURE IMPROVEMENT AND MAINTENANCE [REPORT] |
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SECTION 5. Section 38.101(a), Utilities Code, is amended to |
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read as follows: |
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(a) Not later than May 1 of each year, each electric utility |
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shall submit to the commission a report describing the utility's |
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activities related to: |
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(1) identifying areas that are susceptible to damage |
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during severe weather and hardening transmission and distribution |
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facilities in those areas; and |
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(2) vegetation management[; and |
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[(3) inspecting distribution poles]. |
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SECTION 6. (a) The changes in law made by this Act to |
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Section 38.005, Utilities Code, apply only to an enforcement action |
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initiated by the Public Utility Commission of Texas on or after the |
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effective date of this Act. An enforcement action initiated before |
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the effective date of this Act is governed by the law in effect |
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immediately before the effective date of this Act, and the former |
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law is continued in effect for that purpose. |
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(b) In adopting rules under Section 38.006, Utilities Code, |
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as added by this Act, the Public Utility Commission of Texas shall |
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allow an electric utility, electric cooperative, or municipally |
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owned utility to complete any required inspection, remediation, or |
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replacement of transmission and distribution poles installed |
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before the effective date of the rules according to a reasonable |
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timeline approved by the commission that allows the utility or |
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cooperative to prioritize high-risk transmission and distribution |
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poles. |
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SECTION 7. This Act takes effect September 1, 2025. |
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