AGENDA CAPTION:
Title
Consider approval of Resolution 2026-199R, adopting Public Utility Commission of Texas Substantive Rule 25.61 implementing Senate Bill 1789, providing for municipally owned utility compliance with newly established inspection, serviceability, and reporting standards; authorizing the City Manager, or her designee, to implement Rule 25.61 on behalf of the city; and declaring an effective date.
Body
Meeting date: November 17, 2026
Department: Utilities - Ekaterina Fitos
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Background Information:
The Public Utility Commission of Texas (PUC) published a Proposal for Adoption (PFA) on September 18, 2026 for 16 Texas Administrative Code (TAC) §25.61, finalizing its rulemaking for the implementation of Senate Bill (SB) 1789/Public Utility Regulatory Act (PURA) §38.006. Through §25.61, the PUC has established new inspection requirements, a uniform Serviceability Grading System, and a corresponding Corrective Action Timeline. These standards align closely with existing industry standards, the National Electrical Safety Code (NESC).
In response to significant wildfire incidents across the country caused by failures of electric utility infrastructure, federal and state regulatory requirements were established to strengthen overhead power pole inspection and maintenance practices. As a result, electric utilities are required to comply with state-adopted inspection standards and submit annual reports to the Public Utility Commission by May 1, 2027.
These requirements include:
1. Conducting annual visual inspections of all utility-owned overhead power poles and affixing a unique identification tag to each pole
2. Documenting the condition of each pole and classifying it as Pass, Replace, Remediate, or Emergency
3. Repairing, remediating, or replacing poles that do not meet the Pass condition criteria
4. Submitting documented inspection findings to the Public Utility Commission on an annual basis by May 1
These PUC requirements are applicable to Municipally Owned Utilities (MOUs) and Electric Cooperatives (COOPs), which are private, non-profit, consumer-owned utilities that generate or distribute electricity to the members it serves. SB1789/PURA§38.006(d) and §25.61(c)(2)(A) requires MOUs and COOPs to formally adopt these PUC established standards within 120 days after its effective date of October 8, 2026. Furthermore, MOUs and COOPs must file an attestation with the PUC, as required by PURA §38.006(f) and §25.61(c)(2)(B), alongside the first annual report (due on or before May 1, 2027), to attest that the entity has officially adopted the PUC standards.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommends adoption of Public Utility Commission of Texas (PUC) Substantive Rule 25.61 implementing Senate Bill 1789 providing for municipal owned utility compliance.