Texas Bill Would Add Electricity To Anti-Price Gouging Statute

Texas Bill Would Require PUC To Obtain "Emergency Reserve Power Generation Capacity"

February 22, 2021

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Reporting by Paul Ring • ring@energychoicematters.com

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Various bills have been filed at the Texas legislature in response to the recent weather event

Anti-Price Gouging

SB 680 would clarify electricity as a necessity during a declared disaster under the Deceptive Trade Practices Act, and add electricity as a service covered under an anti-price gouging statute

As such, SB 680 provides that the term "false, misleading, or deceptive acts or practices" includes, but is not limited to, the following acts:

Subject to Section 17.4625, taking advantage of a disaster declared by the governor under Chapter 418, Government Code, or by the president of the United States by:

(A) selling or leasing ... electricity ... at an exorbitant or excessive price; or

(B) demanding an exorbitant or excessive price in connection with the sale or lease of ... electricity

Emergency Reserve Power Generation Capacity

H.B. No. 1965 and H.B. 2016, using almost identical language, would provide that the PUC shall obtain "emergency reserve power generation capacity" as appropriate to prevent blackout conditions

Both bills include similar text to the language below. H.B. No. 1965 is quoted for purposes of this story

H.B. No. 1965 would provide that, "The commission by rule shall develop a process for obtaining emergency reserve power generation capacity as appropriate to prevent blackout conditions caused by shortages of generated power in the ERCOT power region. The rules must provide parameters for estimating the amount of emergency reserve power generation capacity necessary to prevent blackout conditions and mechanisms for equitably sharing the costs of contracting for the reserve capacity to be available and the costs of generated power provided to prevent blackout conditions."

H.B. No. 1965 would provide that, "In accordance with rules adopted under Subsection (a), an independent organization certified under Section 39.151 shall contract with power generation companies for a defined amount of emergency reserve power generation capacity the organization may call on to prevent blackouts caused by shortages of generated power."

H.B. No. 1965 would provide that, "Before the independent organization calls on the emergency reserve power generation capacity to prevent blackout conditions, the organization shall undertake to use all market sources of power and demand reduction available in accordance with commission rules adopted under this section."

ERCOT - Texas Residency

H.B. No. 2034 would provide that, to qualify to serve as a member of ERCOT's board, a person must be a resident of Texas. The bill further provides that the ERCOT CEO must be a resident of Texas

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