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UPDATE on the 86TH LEGISLATURE PRESENTED BY: Kathy Garcia VP, Government Relations, Regulatory Affairs & Public Policy

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UPDATE on the 86TH LEGISLATURE PRESENTED BY: Kathy Garcia VP, Government Relations, Regulatory Affairs & Public Policy UPDATE ON THE 86TH LEGISLATURE PRESENTED BY: Kathy Garcia VP, Government Relations, Regulatory Affairs & Public Policy Kari Torres Meyer Director, Federal & State Relations January 28, 2019 Informational Update AGENDA • STATE ELECTION RESULTS • STATEWIDE PRIORITIES • CPS ENERGY PRIORITIES • INTERNAL & EXTERNAL COORDINATION 2 STATE ELECTION RESULTS • Texas Senate o 19 Republicans o 12 Democrats • Texas House o 83 Republicans o 64 Democrats o 3 Open Seats Despite strong results from Democrats in the 2018 elections, Republicans remain firmly in control in the Legislature. 3 HOUSE DELEGATION HD 119 HD 117 Rep. Roland Rep. Philip Cortez Gutierrez HD 116 HD 118 HD 120 Rep. Trey Rep. Leo Rep. Barbara Martinez Fischer Pacheco Gervin-Hawkins HD 121 HD 123 Rep. Steve Rep. Diego Allison Bernal OPEN HD 125 HD 124 HD 122 Rep. Ina Minjarez Rep. Lyle Larson Red – Republican Blue - Democrat 4 SENATE DELEGATION SD 21 SD 26 Sen. Judith Zaffirini Sen. José Menéndez SD 19 SD 25 Sen. Pete Flores Sen. Donna Campbell Red – Republican Blue - Democrat 5 STATEWIDE PRIORITIES • School Finance • Guns / School Safety / Mental Health • Disaster Recovery / Funding for Hurricane Harvey • Property Taxes & Appraisal Reform • State versus Local Decision-Making Authority Governor Greg Abbott Lt. Governor Dan Patrick Speaker Dennis Bonnen Speaker Bonnen’s district includes the STP nuclear plant. 6 CPS ENERGY PRIORITIES • Protect the Municipally Owned Utility (MOU) Business Model • Utility Worker Safety • Pipeline Safety Pictured here are CPS Energy team members Robert Nathan, Eric Fassett, • Government Transparency Annamarie Rangel, Rudy Garza, Kari Torres Meyer & Richard Lujan following the Hurricane Harvey hearing. • Eminent Domain The Community Solar Taxation issue previously brought forward was resolved locally and will not require legislation. 7 BILL STATISTICS (HBs and SBs only) 7000 The number of 6000 bills filed each 5000 session is 4000 3000 increasing, while 2000 the number that NUMBER OF BILLSOF NUMBER 1000 ultimately pass is 0 decreasing. 83rd 84th 85th Legislature Legislature Legislature (2013) (2015) (2017) Bills Filed 5761 6200 6568 Signed by the Governor 1397 1119 1008 Vetoed 26 41 50 Passed without Signature 14 163 153 8 INTERNAL & EXTERNAL COORDINATION • Flexible Path Awareness • Internal Subject Matter Experts • Alignment with our community partners and industry counterparts to advocate on shared priorities Success can be achieved through consistent communication with all stakeholders. 9 KEY DATES DATE EVENT January 8, 2019 First Day of the 86th Texas Legislature February 4-7, 2019 Annual SA to DC Trip March 5, 2019 ¡VIVA San Antonio! Day @ the Capitol March 8, 2019 Bill Filing Deadline March 13, 2019 Citizens Advisory Committee Day @ the Capitol (tentative) May 27, 2019 Final Day of the Regular Session June 16, 2019 Governor’s Veto Deadline August 26, 2019 Effective date of legislation that did not otherwise have a specific effective date. There are numerous smaller deadlines and milestones bills must meet to continue along the legislative process. 10 Thank You.
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