Bill > HB3402

This bill addresses risk mitigation and liability for electric service providers, particularly in relation to wildfires. It amends existing utility regulations to allow electric utilities to self-insure for potential wildfire-related damages, with specific conditions. Utilities can now self-insure for catastrophic property losses and potential wildfire damages, but the Public Utility Commission must approve such plans by evaluating public interest, cost-effectiveness, and insurance availability. The bill introduces a requirement for electric utilities, cooperatives, and municipally owned utilities in wildfire risk areas to develop comprehensive wildfire mitigation plans. These plans must detail transmission facility inspections, vegetation management strategies, wildfire prevention and response procedures, system restoration plans, and community communication strategies. Importantly, utilities that have an approved mitigation plan can use it as an affirmative defense in civil actions related to wildfire damages, meaning they would not be liable for damages unless a court finds they acted intentionally, recklessly, or with gross negligence. The bill explicitly excludes self-insurance for wildfires caused intentionally or through gross negligence. The Public Utility Commission is required to review and approve these plans within 60 days of filing, ensuring they serve the public interest. The legislation aims to balance utility risk management with public safety and accountability in wildfire-prone regions.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3402