| (a) Purpose. This section provides standards for the
governance of an independent organization within the ERCOT region.
(b) Application. This section applies to ERCOT or any
other organization within the ERCOT region that qualifies as an independent
organization under PURA §39.151.
(c) Adoption of rules by ERCOT and commission review.
ERCOT shall adopt and comply with procedures concerning the adoption
and revision of ERCOT rules.
(1) The procedures shall provide for advance notice
to interested persons, an opportunity to file written comments or
participate in public discussions, and, in the case of market protocols,
operating guides, planning guides, and market guides, an evaluation
by ERCOT of the costs and benefits to the organization and the operation
of electricity markets.
(2) ERCOT staff, the independent market monitor, and
the commission's reliability monitor may comment on any proposed change
in ERCOT rules that affects the operation and competitiveness of markets
operated by ERCOT or reliability of the electric network in ERCOT.
(3) If the findings of a commission-mandated audit
of ERCOT operations or governance indicate the need for a change in
operating practices or procedures or governance rules, ERCOT shall
develop and submit to the commission a plan for implementing the changes.
ERCOT shall implement the plan, as approved by the commission. Commission-mandated
audits, as contemplated in PURA §39.151(d) and (d-1), shall be
funded by ERCOT and do not require approval by the governing board
of ERCOT.
(4) The commission may review a provision of ERCOT's
articles of incorporation or by-laws, or a new or amended ERCOT rule
on the application of an interested person, including commission staff
and the Office of Public Utility Counsel.
(5) The commission shall process requests for review
of a provision of ERCOT's articles of incorporation or by-laws, a
new or amended ERCOT rule, or ERCOT decision in accordance with §22.251
of this title (relating to Review of Electric Reliability Council
of Texas (ERCOT) Conduct). A request for review under this subsection
initiated by the commission, commission staff, or the Office of Public
Utility Counsel is not subject to the alternative dispute resolution
requirements in §22.251(c) of this title, which requires the
use of Section 20 of the ERCOT Protocols (Alternative Dispute Resolution
Procedures), Section 21 of the Protocols (Process for Protocol Revision),
or other applicable ERCOT procedures. In addition, the commission
may, for good cause, waive the requirement that a complaint be filed
within the time prescribed in §22.251(d) of this title.
(d) Access to meetings. ERCOT shall adopt and comply
with procedures for providing access to its meetings to market participants
and the general public. These procedures shall include provisions
on advance notice of the time, place, and topics to be discussed during
open and closed portions of the meetings, and making and retaining
a record of the meetings. Records of meetings of the governing board
shall be retained permanently, and ERCOT shall establish reasonable
retention periods, but not less than five years, for records of other
meetings.
(e) Access to information. This subsection governs
access to information held by ERCOT.
(1) ERCOT shall adopt and comply with procedures that
allow persons to request and obtain access to records that ERCOT has
or has access to relating to the governance and budget of the organization,
market operations, reliability, settlement, customer registration,
and access to the transmission system. ERCOT shall make these procedures
publicly available. Information that is available for public disclosure
pursuant to ERCOT procedures shall normally be provided within ten
business days of the receipt of a request for the information. If
a response requires more than ten business days, ERCOT shall notify
the requester of the expected delay and the anticipated date that
the information may be available. ERCOT's procedures regarding access
to records shall be consistent with this chapter and commission orders.
(A) Information submitted to or collected by ERCOT
pursuant to requirements of ERCOT rules shall be protected from public
disclosure only if it is designated as Protected Information pursuant
to ERCOT rules, except as otherwise provided in this subsection.
(B) ERCOT shall promptly respond to a request from
the commission, a commissioner, a commissioner's designee, the commission
executive director, or the executive director's designee for information
that ERCOT collects, creates or maintains, in order to provide the
commission access to information that the commission, a commissioner,
a commissioner's designee, the executive director, or the executive
director's designee determines is necessary to carry out the commission's
responsibilities for oversight of ERCOT and the wholesale and retail
markets.
(C) In the absence of a request for information under
the Texas Public Information Act, Texas Government Code Annotated,
the commission staff may seek to release information that the commission
has in its possession or has access to that has been designated as
Protected Information under ERCOT rules, and the commission may determine
the validity of the asserted claim of confidentiality through a contested-case
proceeding. In a contested-case proceeding conducted by the commission
pursuant to this subsection, the staff, the entity that provided the
information to the commission, and ERCOT will have an opportunity
to present information or comment to the commission on whether the
information is subject to protection from disclosure under law.
(D) In connection with any challenge to the confidentiality
of information under subparagraph (C) of this paragraph, any person
who asserts a claim of confidentiality with respect to the information
must, at a minimum, state in writing the specific reasons why the
information is subject to protection from public disclosure and provide
legal authority in support of the assertion.
(2) Commission employees, consultants, agents, and
attorneys who have access to Protected Information pursuant to this
section shall not disclose such information except as provided in
the Texas Public Information Act.
(f) Conflicts of interest. ERCOT shall adopt policies
to ensure that its operations are not affected by conflicts of interests
relating to its employees' outside employment and financial interests
and its contractors' relationships with other businesses. These policies
shall include an obligation to protect confidential information obtained
by virtue of employment or a business relationship with ERCOT.
(g) Qualifications, selection, and removal of members
of the governing board. ERCOT shall establish and implement criteria
for an individual to serve as a member of its governing board, procedures
to determine whether an individual meets these criteria, and procedures
for removal of an individual from service if the individual ceases
to meet the criteria.
(1) The qualification criteria shall include:
(A) Definitions of the market sectors;
(B) Levels of activity in the electricity business
in the ERCOT region that an organization in a market sector must meet,
in order for a representative of the organization to serve as a member
of the governing board;
(C) Standards of good standing that an organization
must meet, in order for a representative of the organization to serve
as a member of the governing board; and
(D) Standards of good standing that an individual must
meet, in order for the individual to serve as a member of the governing
board.
(2) The procedures for removal of a member from service
on the governing board shall include:
(A) Procedures for determining whether an organization
or individual meets the criteria adopted under paragraph (1) of this
subsection; and
(B) Procedures for the removal of an individual from
the governing board if the individual or the organization that the
individual represents no longer meets the criteria adopted under paragraph
(1) of this subsection or violates an ERCOT rule, including a written
ERCOT policy adopted under this section, or commission rule, or applicable
statute.
(3) The procedures adopted under paragraph (2) of this
subsection shall:
(A) Permit any interested party to present information
that relates to whether an individual or organization meets the criteria
specified in paragraph (1) of this subsection or has violated an ERCOT
rule, including a written ERCOT policy adopted under this section,
or commission rule, or applicable statute; and
(B) Specify how decisions concerning the qualification
of an individual or whether an individual has violated an ERCOT rule
or written ERCOT policy or procedure adopted under this section, or
commission rule, or applicable statute will be made.
(4) A decision concerning an individual or organization's
qualification or an individual's removal from the governing board
is subject to review by the commission.
(5) ERCOT shall notify the commissioners when a vacancy
occurs for an unaffiliated member of the governing board. ERCOT shall
provide information to the commissioners concerning the process for
selecting a new member, the candidates who have been identified and
their qualifications, any recommendation that will be made to the
governing board, and any other information requested by a commissioner.
The selection of an unaffiliated member of the governing board is
subject to approval by the commission. A person who is selected may
not serve as a member of the governing board until the commission
approves the selection. An unaffiliated board member whose three-year
term has expired shall, if reappointed by the ERCOT governing board,
cease serving as a member of the governing board until the reappointment
is approved by the commission. The commission may remove an unaffiliated
member of the governing board for cause. Compensation, per diem and
travel reimbursements to be paid to unaffiliated members of the governing
board shall be subject to commission review and approval. As used
in this paragraph, "cause" shall mean:
(A) a violation of a commission rule or applicable
statute, an ERCOT rule, or written ERCOT policy or procedure adopted
under this section;
(B) a director is indicted or charged with a felony
or is convicted of a misdemeanor involving moral turpitude;
(C) conduct inconsistent with a director's fiduciary
duty to ERCOT or that may reflect poorly upon the board or ERCOT;
or
(D) a fundamental disagreement with the commission
as to the policies or procedures that ERCOT shall adopt, in each case
as determined by the commission at its sole discretion.
(6) A member of the governing board of ERCOT appointed
after the effective date of this paragraph who serves as an unaffiliated
member may not represent a market participant before the governing
board of ERCOT, the ERCOT technical advisory committee, or any of
its subcommittees or working groups, for a period of one year after
the person ceases to serve as a member of the governing board.
(h) Chief executive officer. The appointment of the
chief executive officer of ERCOT is subject to commission approval.
ERCOT shall notify the commissioners when a vacancy occurs for the
chief executive officer. ERCOT shall provide information to the commissioners
concerning the process for selecting a new chief executive officer,
the candidates who have been identified and their qualifications,
any recommendation that will be made to the governing board, and any
other information requested by a commissioner. A person may not seek
the position of the ERCOT chief executive officer while serving as
a commissioner. Compensation to be paid to the ERCOT chief executive
officer shall be subject to commission review and approval.
(i) Required reports and other information. ERCOT shall
file with the commission the reports and provide the information required
by this subsection.
(1) The qualification criteria shall include:
(A) Definitions of the market sectors;
(B) Levels of activity in the electricity business
in the ERCOT region that an organization in a market sector must meet,
in order for a representative of the organization to serve as a member
of the governing board;
(C) Standards of good standing that an organization
must meet, in order for a representative of the organization to serve
as a member of the governing board; and
(D) Standards of good standing that an individual must
meet, in order for the individual to serve as a member of the governing
board.
(2) Operations report and plan. No later than January
15 of each year, ERCOT shall file an operations report and plan. The
commission may initiate a review of the plan, at its discretion. The
report and plan shall contain the following information:
(A) A copy of an independent audit of ERCOT's market
operation for the report year;
(B) A summary of key market operations statistics,
including prices and quantities of energy and capacity purchased in
the markets operated by ERCOT;
(C) A summary of key reliability statistics;
(D) A summary of transmission planning and generation
interconnection activities and the most recent report on capacity,
demand and reserves;
Cont'd... |
