H.B. No. 145 amends the Utilities Code to enhance risk mitigation planning and liability management for electric service providers, particularly in relation to wildfire risks. The bill allows electric utilities to self-insure against potential liabilities and catastrophic property losses, specifically including damages from wildfires. It establishes criteria for the approval of self-insurance plans by the commission, emphasizing the need for such plans to be in the public interest and to provide cost-effective alternatives to commercial insurance. Additionally, the bill introduces a new requirement for electric utilities, municipally owned utilities, and electric cooperatives to file a wildfire mitigation plan if they operate in designated wildfire risk areas. This plan must include various components such as vegetation management, operational strategies to prevent wildfires, and community outreach efforts.

Furthermore, the bill outlines the legal implications for utilities that have an approved wildfire mitigation plan. If a utility can demonstrate compliance with its plan and that it did not cause a wildfire through intentional or negligent actions, it may not be held liable for damages resulting from that wildfire. The bill also stipulates that utilities failing to implement an approved plan may face administrative penalties. The Public Utility Commission of Texas is tasked with adopting necessary rules to implement these provisions within 180 days of the bill's effective date. The act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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)
Senate Committee Report: Utilities Code 36.064 (Utilities Code 36)
Enrolled: Utilities Code 36.064 (Utilities Code 36)