S.B. No. 1789 amends the Utilities Code to enhance the quality and reliability of electric service in Texas. A new subsection (b-1) is added to Section 36.402, allowing the commission to reduce an electric utility's return on equity during its next rate proceeding if the utility fails to meet standards set by Section 38.006 and suffers damage from a weather-related event or natural disaster. Additionally, Section 38.005(b) is revised to lower the threshold for enforcement actions against utilities based on service interruption metrics, changing the percentage from 300% to 200% greater than the system average. The bill also introduces Section 38.006, which mandates the adoption of structural integrity standards for transmission and distribution poles, requiring utilities to inspect, maintain, and report on their infrastructure.

The bill further stipulates that municipally owned utilities and electric cooperatives must adopt the commission's standards within 120 days of their revision and submit annual reports detailing their maintenance activities. An administrative penalty can be imposed for violations of these new standards. The changes will take effect on September 1, 2025, and the commission is tasked with allowing utilities to prioritize high-risk poles during the implementation of the new inspection and maintenance requirements.

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