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Texas Bill Would Require Plan For Re-regulation Of Electricity Sales, Production

Other Bills Would Require REPs To "Waive" Bill Increases During Emergencies; Require That "Target" ERCOT Reserve Margin Be "Achieved"


March 15, 2021

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Texas State Rep. Lyle Larson has introduced a bill, HB 4323, to require development of a plan for re-regulation the electric industry

HB 4323 provides, "The Public Utility Commission of Texas shall develop a plan to re-regulate the production and sale of electricity if, on July 1, 2021, the average price for average residential use of electricity in ERCOT is greater than the average price for average residential use of electricity in the United States."

Such plan must include:

(1) possible methods to reverse the restructuring of the electric utility industry made by Chapter 405, Acts of the 76th Legislature, Regular Session, 1999;

(2) an evaluation of the effect on residential electricity prices of each method; and

(3) necessary legislative changes to implement each method.

Under the bill, not later than January 5, 2023, the Public Utility Commission of Texas shall deliver the plan to the governor, lieutenant governor, speaker of the house of representatives, and legislative committee in each house of the legislature having jurisdiction over electricity issues.

Limit On REP Bill Increases - HB 4414

HB 4414 has been filed which would limit retail electric provider bill increases during emergencies

HB 4414 provides, "The commission [PUC] by rule shall direct municipally owned utilities, electric cooperatives, and retail electric providers in the ERCOT power region to waive any bill increases for retail electric customers who receive an unusually high bill for services provided during a state of disaster or emergency declared by the president of the United States or a state of disaster declared by the governor under Chapter 418, Government Code."

ERCOT "Target" Reserve Margin - HB 4236

HB 4236 would require that the PUC " achieve and enforce" a "target" reserve margin in ERCOT

HB 4236 states, "The independent organization certified under Section 39.151 for the ERCOT power region must adopt a target planning reserve margin for ERCOT of not less than 15 percent of peak electric demand."

"The commission shall adopt rules as necessary to achieve and enforce the minimum target planning reserve margin," the bill states

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