TITLE 16. ECONOMIC REGULATION

PART 2. PUBLIC UTILITY COMMISSION OF TEXAS

CHAPTER 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS

The Public Utility Commission of Texas (commission) proposes new 16 Texas Administrative Code (TAC) §25.61, relating to Transmission and Distribution Pole Structural Integrity Standards, a corresponding form to 16 TAC §25.61(g), and amendments to 16 TAC §25.52, relating to Reliability and Continuity of Service, and §25.94, relating to Report on Infrastructure Improvement and Maintenance. The commission proposes the new rule and corresponding form and the amendments to implement Public Utility Regulatory Act (PURA) §38.006 as established, and PURA §§38.005 and 38.101 as revised, by Senate Bill 1789 during the 89th Regular Texas Legislative Session.

New 16 TAC §25.61 will implement new PURA §38.006 by establishing inspection requirements, a serviceability grading system, and corrective action requirements to be applicable to each electric utility, municipally owned utility, or electric cooperative that operates an in-service electrical pole or tower in this state. New 16 TAC §25.61 will additionally require each of those entities to annually file, as required by a commission-prescribed form, a report demonstrating compliance with the inspection, serviceability grading, and corrective action requirements and retain records related to the same.

Amended 16 TAC §25.52 will implement revised PURA §38.005 by increasing the distribution feeder performance standards for electric utilities and transmission and distribution utilities (TDUs) and authorizing the commission to consider the duration of service interruptions on distribution feeders in determining appropriate enforcement actions against electric utilities or TDUs. Amended 16 TAC §25.94 will implement revised PURA §38.101 by removing the requirement for electric utilities to include in their annual infrastructure improvement and maintenance reports a description of distribution pole inspection activities. The scope of this rulemaking project, with regards to 16 TAC §25.52 and §25.94, is limited to the proposed amendments, any additional changes reasonably related to the proposed amendments, and nonsubstantive changes.

Growth Impact Statement

The agency provides the following governmental growth impact statement for the proposed rules, as required by Texas Government Code §2001.0221. The agency has determined that for each year of the first five years that the proposed rules are in effect, the following statements will apply:

(1) the proposed rules will not create a government program and will not eliminate a government program;

(2) implementation of the proposed rules will not require the creation of new employee positions and will not require the elimination of existing employee positions;

(3) implementation of the proposed rules will not require an increase and will not require a decrease in future legislative appropriations to the agency;

(4) the proposed rules will not require an increase and will not require a decrease in fees paid to the agency;

(5) the proposed rules will create a new regulation;

(6) the proposed rules will expand an existing regulation;

(7) the proposed rules will not change the number of individuals subject to the rule's applicability; and

(8) the proposed rules will not affect this state's economy.

Fiscal Impact on Small and Micro-Businesses and Rural Communities

There is no adverse economic effect anticipated for small businesses, micro-businesses, or rural communities as a result of implementing the proposed rules. Accordingly, no economic impact statement or regulatory flexibility analysis is required under Texas Government Code §2006.002(c).

Takings Impact Analysis

The commission has determined that the proposed rules will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.

Fiscal Impact on State and Local Government

James Euton, Project Engineer, Infrastructure Division, has determined that for the first five-year period the proposed rules are in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the sections.

Public Benefits

Mr. Euton has determined that for each year of the first five years the proposed rules are in effect the public benefit anticipated as a result of enforcing the rules will be the enhanced reliability of this state's electrical system through increased distribution feeder performance standards applicable to electric utilities and TDUs and standardized inspection, serviceability grading, corrective action, reporting, and record retention requirements applicable to electric utilities, municipally owned utilities, and electric cooperatives that operate in-service electrical poles or towers in this state. The economic costs to persons required to comply with the rules under Texas Government Code §2001.024(a)(5) will vary by person.

Local Employment Impact Statement

For each year of the first five years the proposed sections are in effect, there should be no effect on a local economy; therefore, no local employment impact statement is required under Texas Government Code §2001.022.

Costs to Regulated Persons

Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under subsection §2001.0045(c)(7).

Public Hearing

The commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by July 31, 2026. If a request for public hearing is received, commission staff will file in this project a notice of hearing.

Public Comments

Interested persons may file comments electronically through the interchange on the commission's website. Comments must be filed by July 31, 2026. Comments should be organized in a manner consistent with the organization of the proposed rules. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed rules. The commission will consider the costs and benefits in deciding whether to modify the proposed rules on adoption. All comments should refer to Project Number 59432.

Each set of comments should include a standalone executive summary as the last page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should include a bulleted list covering each substantive recommendation made in the comments.

SUBCHAPTER C. INFRASTRUCTURE AND RELIABILITY

16 TAC §25.52, §25.61

Statutory Authority

The amendments and new rule are proposed under Public Utility Regulatory Act (PURA) §§14.001, which grants the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; 14.002, which authorizes the commission to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; 38.005, which establishes distribution feeder performance standards applicable to electric utilities and TDUs and directs the commission to consider the performance of electric utilities' and TDUs' distribution feeders in determining appropriate enforcement actions; 38.006, which directs the commission to adopt standards for the structural integrity of transmission and distribution poles; and 38.101, which requires electric utilities to annually submit to the commission a report on infrastructure improvement and maintenance activities.

Cross Reference to Statute: Public Utility Regulatory Act §§14.001; 14.002; 38.005; 38.006; and 38.101.

§ 25.52. Reliability and Continuity of Service.

(a) - (b) (No change.)

(c) Definitions. The following words and terms, when used in this section, have the following meanings unless the context indicates otherwise.

(1) - (3) (No change.)

(4) Interruption classifications:

(A) - (C) (No change.)

(D) Major events--Interruptions that result from a catastrophic event that exceeds the design limits of the electric power system, such as an earthquake or an extreme storm. These events must include situations where there is a loss of power to 10% or more of the customers in a region over a 24-hour period and with all customers not restored within 24 hours.

(5) - (8) (No change.)

(d) - (f) (No change.)

(g) System reliability. Reliability standards apply to each utility and are limited to the Texas jurisdiction. A "reporting year" is the 12-month period beginning January 1 and ending December 31 of each year.

(1) (No change.)

(2) Distribution feeder performance. The commission will evaluate the performance of distribution feeders with ten or more customers after each reporting year. Each utility must maintain and operate its distribution system so that no distribution feeder with ten or more customers sustains a SAIDI or SAIFI value for a reporting year that is more than 200% [~~300%~~] greater than the system average of all feeders during any two consecutive reporting years.

(3) Enforcement. The commission may take appropriate enforcement action, including action against a utility, if the system and feeder performance is not operated and maintained in accordance with this subsection. In determining the appropriate enforcement action, the commission will consider:

(A) the feeder's operation and maintenance history;

(B) the cause of each interruption in the feeder's service;

(D) [~~(C)~~] any action taken by a utility to address the feeder's performance;

(E) [~~(D)~~] the estimated cost and benefit of remediating a feeder's performance; and

(F) [E)] any other relevant factor as determined by the commission.

(h) (No change.)

§ 25.61. Transmission and Distribution Pole Structural Integrity Standards.

(a) Applicability. This section applies to an electric utility, a municipally owned utility, or an electric cooperative that operates a transmission or distribution asset in this state.

(b) Definitions.

(1) Entity--an electric utility, a municipally owned utility, or an electric cooperative that operates a transmission or distribution asset in this state.

(2) County, coastal--a county in this state that is defined as a "first-tier coastal county" or "second-tier coastal county" under Section 2201.003 of the Texas Insurance Code.

(3) County, non-coastal--a county in this state that is not defined as a "first-tier coastal county" or "second-tier coastal county" under Section 2201.003 of the Texas Insurance Code.

(4) Structure, non-wood--an in-service electrical pole or tower, including any attached crossarms, davit arms, guy wires, insulators, or supports, operating at any voltage that is constructed of composite, concrete, or steel materials.

(5) Structure, wood--an in-service electrical pole or tower, including any attached crossarms, davit arms, guy wires, insulators, or supports, operating at any voltage that is constructed of wood materials.

(1) Inspection types.

(A) Visual inspection. A visual inspection allows an entity to assess any readily observable damage or defects to a wood or non-wood structure, such as broken insulators, damaged crossarms or davit arms, damaged or missing bolts, extreme rust/corrosion, or slacked or broken guy wires.

(B) Comprehensive inspection. A comprehensive inspection includes a visual inspection as well as a detailed assessment of any structural damage or defects to a wood or non-wood structure, such as below-groundline decay, rot, or loss of strength, structural corrosion or deformation, foundation issues, or poor hardware condition.

(2) Routine inspections.

(A) Structures operated at transmission-level voltage. An entity that operates a wood or non-wood structure at transmission-level voltage must develop and implement an inspection cycle that ensures:

(i) a visual inspection of each structure is conducted annually; and

(ii) a comprehensive inspection of each structure is conducted at least every five years.

(B) Structures operated at distribution-level voltage.

(i) Wood structures in a coastal county. An entity that operates a wood structure at distribution-level voltage in a coastal county of this state must develop and implement an inspection cycle that ensures a comprehensive inspection of each wood structure is conducted at least every eight years.

(ii) Wood structures in a non-coastal county. An entity that operates a wood structure at distribution-level voltage in a non-coastal county of this state must develop and implement an inspection cycle that ensures a comprehensive inspection of each wood structure is conducted at least every 10 years.

(iii) Non-wood structures. An entity that operates a non-wood structure at distribution-level voltage must develop and implement an inspection cycle that ensures a comprehensive inspection of each non-wood structure is conducted at least every 10 years.

(3) Post-event inspections. As soon as practicable, but not later than 30 calendar days, after an event that an entity reasonably expects to have impacted the physical condition of a wood or non-wood structure, the entity that operates the structure must conduct a visual inspection of the structure.

(d) Serviceability grading system. Upon conducting any inspection of a structure required by this section, an entity must assign the structure a serviceability grade.

(1) Pass. A ‘Pass’ grade applies when the structure meets the applicable strength requirements established by the National Electrical Safety Code (NESC).

(2) Remediate. A ‘Remediate’ grade applies when the structure does not meet the ‘Pass’ grade criteria under paragraph (1) of this subsection but can reasonably be restored through repair, reinforcement, treatment, or another means of correction.

(3) Replace. A ‘Replace’ grade applies when the structure does not meet the ‘Pass’ grade criteria under paragraph (1) of this subsection and cannot reasonably be restored through repair, reinforcement, treatment, or by another means of correction.

(4) Emergency. An ‘Emergency’ grade applies when the structure exhibits signs of imminent failure risk or otherwise poses a risk to public safety.

(e) Corrective actions.

(1) Remediation. As soon as practicable, but not more than six months, after the date an entity assigns a structure a ‘Remediate’ grade under subsection (d) of this section, the entity must restore the structure to the applicable NESC strength requirements through repair, reinforcement, treatment, or by other means of correction.

(2) Replacement. As soon as practicable, but not more than six months, after the date an entity assigns a ‘Replace’ grade to a structure under subsection (d) of this section, the entity must replace the structure with another structure that meets the applicable NESC strength requirements.

(3) Emergency.

(A) Make-safe. As soon as practicable, but not more than two calendar days, after the date an entity assigns an ‘Emergency’ grade to a structure under subsection (d) of this section, the entity must make-safe the structure by resolving the structure's imminent failure or public safety risk.

(B) Replacement. As soon as practicable, but not more than six months, after the date the entity resolves the structure's imminent failure or public safety risk, the entity must replace the structure with another structure that meets the applicable NESC strength requirements.

(f) Adoption and attestation by municipally owned utilities and electric cooperatives.

(1) Adoption. In accordance with Public Utility Regulatory Act (PURA) §38.006(d) and Senate Bill 1789, §6(c), as enacted during the 89th Regular Texas Legislative Session, each municipally owned utility and electric cooperative must adopt the requirements established under subsections (c), (d), and (e) of this section not later than 120 days after the effective date of this section.

(2) Attestation. In accordance with PURA §38.006(f), each municipally owned utility and electric cooperative must file an attestation stating that the municipally owned utility or electric cooperative has adopted standards in compliance with PURA §38.006. The attestation must be:

(A) signed by the municipally owned utility's or electric cooperative's highest-ranking representative, official, or officer with binding authority over the municipally owned utility or electric cooperative; and

(B) filed with the first annual report under subsection (g) of this section after the municipally owned utility or electric cooperative adopts the requirements established under subsections (c), (d), and (e) of this section.

(g) Annual report. Not later than May 1 of each year, an entity must file with the commission a report on the entity's actions and results under subsections (c), (d), and (e) of this section for the prior calendar year as required by a commission-prescribed form.

(h) Record retention. An entity must retain records of the entity's actions and results under subsections (c), (d), and (e) of this section for all structures the entity operates. The entity must retain the records associated with a structure for the entirety of the structure's service life, beginning on the effective date of this section. At a minimum, the entity must retain records related to the:

(1) Identification of the structure, including a unique identifier;

(2) Physical and design characteristics of the structure, including the voltage, support type, construction material, strength rating, and length; and

(3) Installation, inspection, serviceability grading, and corrective action history of the structure, including documentation of:

(A) the date the structure was placed into service;

(B) the dates, types, and methods of inspections performed on the structure;

(C) the serviceability grades assigned to the structure, including, if assigned a serviceability grade other than ‘Pass,’ a description of the damage or defect resulting in that serviceability grade and the root cause of the damage or defect; and

(D) if assigned a serviceability grade other than ‘Pass,’ any corrective actions required to restore, replace, or make-safe the structure.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 18, 2026.

TRD-202602491

Katelyn Lewis

Special Projects Coordinator

Public Utility Commission of Texas

Earliest possible date of adoption: August 2, 2026

For further information, please call: (512) 936-7044

SUBCHAPTER D. RECORDS, REPORTS, AND OTHER REQUIRED INFORMATION

16 TAC §25.94

Statutory Authority

The amendments are proposed under Public Utility Regulatory Act (PURA) §§14.001, which grants the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; 14.002, which authorizes the commission to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; 38.005, which establishes distribution feeder performance standards applicable to electric utilities and TDUs and directs the commission to consider the performance of electric utilities' and TDUs' distribution feeders in determining appropriate enforcement actions; 38.006, which directs the commission to adopt standards for the structural integrity of transmission and distribution poles; and 38.101, which requires electric utilities to annually submit to the commission a report on infrastructure improvement and maintenance activities.

Cross Reference to Statute: Public Utility Regulatory Act §§14.001; 14.002; 38.005; 38.006; and 38.101.

§ 25.94. Report on Infrastructure Improvement and Maintenance.

(a) Application. This rule applies to all electric utilities.

(b) Reports. By May 1st of each year, an electric utility must [shall] file with the commission a report that contains the information described in subsection (c) of this section for the previous calendar year.

(1) Identifying areas in its service territory that are susceptible to damage during severe weather and hardening transmission and distribution facilities in those areas; and

(2) Vegetation management. [~~; and~~]

~~[(3) Inspecting distribution poles.]~~

(d) Each electric utility must [~~shall~~] include in a report required under subsection (b) of this section a summary of the utility's activities related to preparing for emergency operations.