S.B. No. 1789 aims to enhance the quality and reliability of electric service in Texas by introducing new standards and penalties for electric utilities. The bill amends Section 36.402 of the Utilities Code to allow the Public Utility Commission to reduce a utility's return on equity during rate proceedings if the utility fails to meet standards set forth in Section 38.006 and experiences damage from weather-related events or natural disasters. Additionally, it modifies Section 38.005(b) to lower the threshold for enforcement actions based on service interruption metrics from 300% to 200% above the system average, while also considering the duration of interruptions and actions taken by the utility to improve performance.

Furthermore, the bill establishes new structural integrity standards for transmission and distribution poles under Section 38.006, requiring utilities to inspect, maintain, and replace poles as necessary, while also mandating annual reporting on these activities. The governing bodies of municipally owned utilities and electric cooperatives are required to adopt these standards within 120 days of their adoption by the commission. The bill also introduces administrative penalties for violations of these new standards, reinforcing accountability among utilities. The changes will take effect on September 1, 2025.

Statutes affected:
Introduced: Utilities Code 36.402, Utilities Code 38.005, Utilities Code 38.101 (Utilities Code 38, Utilities Code 36)
Senate Committee Report: Utilities Code 36.402, Utilities Code 38.005, Utilities Code 38.101 (Utilities Code 38, Utilities Code 36)
Engrossed: Utilities Code 36.402, Utilities Code 38.005, Utilities Code 38.101 (Utilities Code 38, Utilities Code 36)
House Committee Report: Utilities Code 36.402, Utilities Code 38.005, Utilities Code 38.101 (Utilities Code 38, Utilities Code 36)
Enrolled: Utilities Code 36.402, Utilities Code 38.005, Utilities Code 38.101 (Utilities Code 38, Utilities Code 36)