H.B. No. 4627 aims to enhance the quality and reliability of electric service in Texas by amending various sections of the Utilities Code. A significant addition is Subsection (b-1) to Section 36.402, which prohibits the Public Utility Commission from allowing electric utilities to earn a return on equity for infrastructure repairs or replacements that should have been reasonably anticipated as vulnerable to weather-related events or natural disasters. Additionally, Section 38.005(b) has been modified to lower the threshold for enforcement actions against utilities based on service interruption metrics, changing the percentage from 300% to 200% above the system average. The commission is also required to consider the duration of service interruptions and any actions taken by utilities to improve performance.

Furthermore, the bill introduces Section 38.006, which mandates the commission to establish structural integrity standards for transmission and distribution poles, including inspection and maintenance schedules. Utilities will be required to submit annual reports detailing their maintenance activities and inspection results. The bill also updates the heading of Subchapter E to reflect a focus on infrastructure improvement and maintenance, and it streamlines reporting requirements for utilities regarding severe weather preparedness and vegetation management. 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)