The Senate Committee on Jurisprudence met on May 3rd to discuss several Senate bills and to hear several House bills for potential advancement. Bills covered in this report include HB 2586 (Thierry), HB 10 (Paddie), HB 11 (Paddie), HB 12 (Raymond), HB 13 (Paddie). HB 2856 (Thierry) was voted out at the end of the hearing. The full notice can be found here.

 

This report is intended to give you an overview and highlight of the discussions on the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

HB 2586 (Thierry) Relating to an annual audit of the independent organization certified for the ERCOT power region.

  • Hall – Greater oversight and transparency of ERCOT is necessary
  • Bill requires PUC to complete yearly outside audits and report the audit results to the legislature and governor, as well as the public
  • Common-sense step to close gaps in the system
  • House companion to SB 1252

 

HB 2586 voted out to the full senate unanimously, referred to local and uncontested calendar

 

HB 10 (Paddie) Relating to the governance of the Public Utility Commission of Texas, the Office of Public Utility Counsel, and an independent organization certified to manage a power region.

  • Schwertner – ERCOT board reform bill, specifically relating to residency requirements for the board’s members and accountability
  • Bill removes the 5 unaffiliated members and adds 3 Governor’s appointees, 1 by the Lt. Gov, and 1 by the Speaker, and requires that members be residents of Texas, unpaid, and unreimbursed for expenses
  • Johnson – Concerned that this may change the perception that ERCOT is an independent agency due to political appointments
    • Positives and negatives: can add understanding of political process and the concerns of individuals in power, downside is that it could be perceived as pushing certain decisions to favor those in power
    • Would be lesser in number than the other ERCOT members, so they could not independently overrule the rest of the board for political issues

 

Cyrus Reed, Sierra Club Lone Star Chapter – For

  • Appreciate the fact that one appointee will represent residential consumers
  • Good idea to require Texas residency
  • Some concerns about political appointees, but a way around that could be ERCOT and OPUC suggest some nominees after a vetting process, and have some language prohibiting members from having financial stake in the wholesale electric market

 

Left pending

 

HB 11 (Paddie) Relating to the preparedness for extreme weather emergencies of facilities that provide electricity service, providing an administrative penalty.

  • Schwertner – Bill requires PUC to mandate that power generators implement measures to prepare facilities to provide service during winter storms and extreme weather emergencies, requiring those providers and generators to report on emergency operation plans
  • Would also require generators to have measures in place to re-establish capacity as quickly as possible if it is interrupted
  • Hinojosa – Does this include gas supplier weatherization?
    • No, HB 14 discusses mapping of gas supply chain, but no requirements for weatherization
    • SB 3 specifically touched on supplier weatherization
  • Hinojosa – Is weatherization mandated under this bill?
    • Requires PUC to mandate that generators prepare for storm emergencies
    • Different penalty structures in different bills, such as SB 3; need to reconcile differences with House and Senate versions

 

Tim Morstead, AARP – On

  • Bill takes some positive steps, but also has some deficiencies
  • Recommends that the bill address the entire supply chain, such as natural gas suppliers, not just generators
  • Recommends changing the definition of weather emergency due to too high a bar to trigger the weatherization requirements, would not have been triggered under the winter storm
  • Recommends that ERCOT and PUC be mandated for increasing capacity for winter and other spikes, not just summer capacity spikes

 

Jason Ryan, CenterPoint Energy – For

  • Relating to load capacity requirements in the bill
  • Load management should also be used in localized events, not just ERCOT wide – supportive of that provision

 

Michele Richmond, Texas Competitive Power Advocates – For

  • Some recommendations: much prefer SB 3 language that addresses entire supply chain, including suppliers
  • Lack of knowledge about what happened to various gas lines – bill would increase transparency of the gas transmission lines
  • Prefer approach of SB 3 for holistic reform of the system

 

J.P. Urban, AECT – For

  • Support reforms involving extreme heat and cold – good that it is not prescriptive due to developing technologies
  • No specific area of ERCOT is overlooked, which is good for citizens
  • Concerned with supply chain being excluded, but support the bill

 

Julia Harvey, Texas Electric Cooperatives – For

  • Support bill because common baseline standards would help ensure that facilities can withstand extreme events
  • Recommends expanding language to include supply chain
  • Recommends recognition of geographic differences among cooperatives and how it may affect weatherization
  • The bill would require more capital spending and investment by companies, hope legislature is considering financing/funding methods for implementation

 

Cyrus Reed, Sierra Club Lone Star Chapter – For

  • Standard is too strong for cold weather – needs to be more reasonable, maybe leave that to rule makers
  • Need to expand to supply chain
  • Need to create a provision that the weatherization requirements be revisited every 5 years due to climate change
  • Update annually the reports and capacity data
  • Expand energy efficiency programs to meet demand response for residential consumers during emergency events

 

Left pending

 

HB 12 (Raymond) Relating to a study on a statewide disaster alert system and implementation of that system and to notice to elected officials of a widespread power, water, or natural gas outage or emergency.

  • Johnson – Winter storm saw communication breakdown – bill establishes statewide alert system for emergency notifications
  • Bill requires conduct of a study for implementation of this alert system to provide timely and critical information to Texans

 

Adam Haynes, Conference of Urban Counties – On

  • Appreciate the spirit of the bill
  • Moving forward, its critical to get information out to citizens
  • Hinojosa – Why couldn’t we use the current alert system rather than expanding a new one with TDEM?
    • That is something we can work on, but the study conducted should produce recommendations for the system and it will study the current alert system as a potential candidate
  • Schwertner – SB 3 utilizes the current DPS system for alerts for weather emergencies and new information

 

Michele Richmond, Texas Competitive Power Advocates – For

  • Recommends use of current DPS system because it works well
  • Recommends use of clear and simple information disseminated, including resources for finding more detailed information and updated pages

 

J.P. Urban, AECT – On

  • Envision like DPS system
  • One major breakdown was poor communication to Texans in their homes resulting in less informed decision making
  • Amendment in the House that required utilities to notify officials when practical, issue is that this number of officials could be hundreds of people, and they do not know all the information, just their details – would like to clean up that language

 

Julia Harvey, Texas Electric Cooperatives – On

  • Statewide alert system would be effective in providing information to the public
  • There are 50 coops in ERCOT, and concerns are similar surrounding the notice requirement for potentially dozens of officials – takes up a lot of time and resources
  • Focus on notifying members, PUC, and communicating with ERCOT and specific state coordinating officials
  • Hinojosa – We get notice quickly one way or another, our concern is the public getting this information quickly

 

Cyrus Reed, Sierra Club Lone Star Chapter – For

  • Recommends addition of TCEQ in the study for statewide system report
  • If there are local pollution impacts, that should be examined as part of any study
  • Schwertner – You are discussing localized alerts from environmental risks?
    • Yes, which is why TCEQ should be involved, and if there are no issues, we have that extra confidence and backstop just in case

 

Left pending

 

HB 13 (Paddie) Relating to the establishment of the Texas Energy Disaster Reliability Council.

  • Schwertner – Bill formalizes TEDRC; in its informal incarnation it has provided valuable information and collaboration between agencies and providers/generators
  • Need to formally recognize this relationship
  • Would consist of officials from ERCOT, PUC, RRC, and TDEM – would meet semi-annually and meet ASAP during a disaster to avoid extended/widespread outages
  • Would collaborate with federal/state disaster response agencies, and would submit annual reports on supply chain strengthening and grid strengthening measures
  • Included in SB 3 as well
  • Hinojosa – Council is exempted from Open Meetings Act?
    • Was not aware that TERC was a council, need to look at that
    • There are some critical issues discussed in the council between private interests and concerning critical aspects of the grid and other sensitive subjects, so there is a need for some modicum of security in discussions

 

Michele Richmond, Texas Competitive Power Advocates – For

  • Would appreciate seeing transparency language added to the bill
  • Understand some confidentiality, but notice that meetings are occurring at least would be beneficial
  • Recommend coordination of some smaller ERCOT committees, such as gas supply chain

 

J.P. Urban, AECT – For

  • Gas and electric loop are critical – formalizing TURC as TEDRC is critical to ensure continued access and flow of electricity and supply
  • Concerning privacy, should probably include transparency language, but understand need for some confidential aspects to protect sensitive information

 

Julia Harvey, Texas Electric Cooperatives – For

  • Interconnected supply chain – council can ensure future integrity of the supply chain
  • Will help isolate underlying causes and help correct them for future strengthening of the supply process

 

Left pending