Senate Bill No. 1789 aims to enhance the quality and reliability of electric service in Texas by introducing new standards and enforcement mechanisms for electric utilities. A significant addition is the new Subsection (b-1) to Section 36.402 of the Utilities Code, which allows the Public Utility Commission to reduce a utility's return on equity during rate proceedings if the utility fails to meet established standards and subsequently suffers damage from weather-related events or natural disasters. Additionally, Section 38.005(b) has been amended to lower the threshold for enforcement actions against utilities based on their service interruption metrics, changing the percentage from 300% to 200% above 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 replace these poles as necessary. Utilities must submit annual reports detailing their maintenance schedules and inspection results. Other amendments include the removal of outdated language regarding inspections and the requirement for utilities to focus on vegetation management and hardening facilities in areas prone to severe weather. The changes will take effect on September 1, 2025, and will apply to enforcement actions initiated after that date.

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)