H.B. No. 145 aims to enhance risk mitigation planning and liability management for electric service providers in Texas, particularly concerning wildfire risks. The bill amends Section 36.064 of the Utilities Code, allowing electric utilities to self-insure against potential liabilities and catastrophic property losses, including those from wildfires. It introduces new criteria for the approval of self-insurance plans, emphasizing the need for the plans to be in the public interest and to consider the potential extent of wildfire losses. Additionally, it specifies that utilities cannot self-insure for damages caused by wildfires if they acted intentionally, recklessly, or with gross negligence.

The bill also adds Sections 38.080 and 38.081 to the Utilities Code, mandating that electric utilities and cooperatives in wildfire risk areas file a wildfire mitigation plan with the Public Utility Commission. These plans must include detailed strategies for vegetation management, operations to reduce wildfire ignition, and community outreach efforts. Utilities that fail to implement an approved plan may face administrative penalties. Furthermore, the bill provides liability protections for utilities that comply with their approved wildfire mitigation plans, shielding them from damages unless negligence is proven. The provisions of this act will take effect immediately upon receiving a two-thirds vote or on September 1, 2025, if not.

Statutes affected:
Introduced: Utilities Code 36.064 (Utilities Code 36)
House Committee Report: Utilities Code 36.064 (Utilities Code 36)
Engrossed: Utilities Code 36.064 (Utilities Code 36)