Texas House Passes Amended Bill Removing Retail Electric Providers From Being Subject To PUC "Monitoring" Of Cybersecurity

Senate-Passed Language Includes REPs As Subject To PUC Cybersecurity Monitoring

May 23, 2019

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Reporting by Paul Ring • ring@energychoicematters.com

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The Texas House has passed an amended version of a Senate bill, SB 64, with the House amendments removing retail electric providers as entities that would be subject to the monitoring of cybersecurity practices by the Texas Public Utility Commission

The bill would adopt a new Subchapter of the utilities code, and would require the Public Utility Commission of Texas to establish a program to monitor the cybersecurity efforts of various entities in the electric industry

As previously passed by the Senate, the relevant Subchapter would define "utility" to mean, among other entities, a, "retail electric provider".

The bill as initially passed by the Senate provides that the PUC, "shall establish a program to monitor cybersecurity efforts among utilities in this state."

Such program shall:

(1) provide guidance on best practices in cybersecurity and facilitate the sharing of cybersecurity information between utilities; and

(2) provide guidance on best practices for cybersecurity controls for supply chain risk management of cybersecurity systems used by utilities, which may include, as applicable, best practices related to:

     (A) software integrity and authenticity;

     (B) vendor risk management and procurement controls, including notification by vendors of incidents related to the vendor's products and services; and

     (C) vendor remote access.

An amendment adopted by the House, and included in final passage by the House, removes retail electric providers from the definition of utility described above

The Senate will need to concur with the amended version of the bill, or a conference committee will need to be called, for final passage.

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