Bill > SB2025

This bill addresses risk mitigation and liability for electric service providers in Texas, specifically focusing on wildfire-related risks. The legislation allows electric utilities to self-insure potential liability from catastrophic events, including wildfires, with Public Utility Commission approval, considering factors like historical data and potential disaster exposures. The bill introduces a requirement for electric utilities, electric cooperatives, and municipally owned utilities to develop comprehensive wildfire mitigation plans that outline vegetation management strategies, facility inspection processes, operational plans to reduce wildfire ignition risks, system restoration procedures, and community communication strategies. Importantly, the bill provides a legal protection mechanism where utilities with commission-approved mitigation plans can use material compliance with their plan as an affirmative defense in civil actions related to wildfire damages. The bill limits liability for utilities, stipulating that they would only be held responsible for wildfire damages if a court finds they caused the damage intentionally, recklessly, or with gross negligence. The Public Utility Commission is tasked with reviewing and approving these plans within 60 days of filing, and the law will apply to causes of action accruing on or after its effective date, which could be immediately if it receives a two-thirds vote in the Texas legislature or will take effect on September 1, 2025, if not.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2025