Smitherman Urges "Blank Sheet of Paper" For Legislative Review of PUCT, EROCT, RRC

PUCT Chairman Barry Smitherman believes that state lawmakers should use the Sunset review process to engage in a holistic review of the PUCT, ERCOT, and Railroad Commission, and should start "with a blank sheet of paper."

Smitherman's comments came as the Commission deferred action on proposed rules clarifying the Commission's role over ERCOT (Project 38338, see 2/7).

Smitherman expressed his concern that the proposed rules further the illusion that the PUCT can exercise control over ERCOT, although its ability even under the modified rules would remain quite limited. Accordingly, Smitherman would prefer not to adopt the proposed rule and allow the Legislature to address the relationship, structure, responsibility, governance, and related issues among the Legislature, PUCT, ERCOT, and Railroad Commission as part of the Sunset review.

Smitherman said that the Commission cannot just tweak at the margins to improve its current authority over ERCOT.

However, due to the deadline for taking action on the proposed rule under the Administrative Procedures Act, should the Commission not adopt it at its next open meeting later this month, the rule would be deemed withdrawn, and there is no guarantee the Legislature will act to clarify the relationship among the various agencies.

As such, Commissioners Donna Nelson and Kenneth Anderson appeared prepared to adopt the rule as proposed, or something similar, as a necessary and beneficial interim measure, although both agreed lawmakers should engage in the process suggested by Smitherman.