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Texas Bill Would Cap Wholesale Energy Prices During, After Disasters
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Several additional bills impacting the Texas energy market have been filed at the Texas legislature
Express Consent For Rollover From Fixed To Variable Rate
HB 3138 would require a retail electric provider to obtain the customer's express
consent to roll-over a customer from a fixed rate to a variable rate.
Specifically, HB 3138 would provide, "A retail electric provider may not enroll a customer
in a rate plan that allows the provider to use a variable rate
pricing structure after the expiration of a rate plan with a
fixed-rate pricing structure without the customer's express
consent. The consent must be given in a manner that indicates the
customer understands that the customer is potentially enrolling in
a variable rate plan. The retail electric provider shall provide
notice that the plan includes variable rates in an easily readable
font and type size."
Nothing in the text of HB 3138 limits its requirements to residential customer contracts
As first reported by EnergyChoiceMatters.com, several other Texas bills have been introduced which seek a ban on variable rates or a prohibition on roll-overs to variable rates (see details here)
Expanded Prohibition On Disconnection
By amending the definition of, "extreme
weather emergency", HB 3167 would prohibit retail electric providers from disconnecting a residential customer if, "the temperature exceeds 90 degrees Fahrenheit and
the temperature is predicted to remain at or above that level for
the next 24 hours according to the nearest National Weather Service
reports," while also maintaining such a prohibition based on the current two definitions of an extreme
weather emergency
Currently, with respect to high temperatures, statute only prevents disconnections in cases where the National Weather Service issues a heat
advisory for any county in the relevant service territory, or when
such an advisory has been issued on any one of the previous two
calendar days. National Weather Service Heat Advisory criteria vary by region but generally are issued for temperatures (or heat indices) well-above 90 degrees Fahrenheit (such as a daytime high of at least 100 degrees), and thus the bill would generally expand the periods of time in which a disconnection prohibition is in effect
ERCOT Energy Market Price Cap During Disasters
HB 3166 would place a cap on ERCOT wholesale "energy" during a state of disaster resulting from a power supply
shortage, a period of time thereafter
HB 3166 provides, "During a
state of disaster declared by the governor under Chapter 418,
Government Code, in response to an event that causes a power supply
shortage in ERCOT and for 30 days after the termination of the
disaster declaration, the price of wholesale energy sold in a
market operated by the independent organization certified under
Section 39.151 for the ERCOT power region may not exceed 200 percent
of the average peak daily price of wholesale energy sold in the
market in the previous 90 days."
System Benefit Fund
HB 3076 would re-establish the system benefit fund with the same requirements and level for REP discounts, reimbursed by the fund, as were in place in statute prior to the fund expiring. As before, the system benefit account would be financed by a
nonbypassable fee set by the PUC in an amount not to exceed
65 cents per megawatt-hour.
Authorization For TDUs, Other Utilities To Construct Facilities To Purchase Power Outside Of ERCOT
HB 3177 would provide that, "Notwithstanding any other
law, a transmission and distribution utility, municipally owned
utility, or electric cooperative that transmits or distributes
power purchased at wholesale in the ERCOT power region may
construct, own, and operate facilities as necessary to:
(1) access transmission service from outside of the
ERCOT power region; and
(2) purchase power at wholesale from outside of the
ERCOT power region."
HB 3177 could implicate federal jurisdiction due to such facilities and potential purchase of power from outside of ERCOT
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Texas Bill Would Require Express Consent For Rollover From Fixed To Variable Rate
Texas Bill Would Expand Periods Of Time When Disconnections Are Prohibited
Texas Bill Would Authorize Utilities In ERCOT To Construct Facilities To Purchase Power Outside Of ERCOT
March 9, 2021
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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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