S.B. No. 2025 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 by the Public Utility Commission, emphasizing the need for 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.

Furthermore, the bill adds Section 38.080 to the Utilities Code, mandating electric utilities and cooperatives operating in wildfire risk areas to file a wildfire mitigation plan with the commission. This plan must include detailed strategies for vegetation management, operations to reduce wildfire ignition, and community outreach efforts. The commission is required to approve or modify these plans within 60 days, and utilities with approved plans are granted an affirmative defense against liability for damages caused by wildfires, provided they comply with their plans. The bill emphasizes the importance of proactive measures in mitigating wildfire risks and outlines the responsibilities of electric service providers in safeguarding their operations and communities.

Statutes affected:
Introduced: Utilities Code 36.064 (Utilities Code 36)