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Texas Bill Limiting Market Share Of Retail Electric Providers (Corporate-Wide) Included In Suite Of Bills Unveiled by Broad Coalition Of Senators For ERCOT Market Reform

March 9, 2023

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Copyright 2010-21
Reporting by Paul Ring •

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A group of Texas senators have unveiled several bills aimed at ERCOT market reform, and among them is a bill that would cap the market share of a retail electric provider, including those REPs under common ownership

As introduced, among its other provisions, SB 2012 would cap a REP, including a corporate parent of the REP, at a retail market share of 20% of the customers in the competitive retail market in a power region (e.g. ERCOT)

The bill would require a REP exceeding such market share to file a plan with the PUC to reduce its market share

The bill's text provides as follows:


(a) A retail electric provider and a corporate parent of the retail electric provider may not, considered together, provide retail market service to more than 20 percent of the customers in the competitive retail market in a power region.

(b) Each retail electric provider that offers electricity for sale shall report to the commission its annual retail sales in this state, the annual retail sales in this state by the provider's corporate parent, and any other information the commission requires to assess compliance with Subsection (a). The commission by rule shall prescribe the nature and detail of the reporting requirements. The commission shall administer the reporting requirements in a manner that ensures the confidentiality of competitively sensitive information.

(c) The commission shall require a retail electric provider that the commission finds is violating Subsection (a) to submit to the commission a plan for reducing the provider's market share. The plan must be in a form prescribed by the commission and provide information the commission finds reasonably necessary to evaluate the plan.

(d) The commission shall approve, modify, or reject a plan submitted under Subsection (c) not later than the 180th day after the date the plan is filed with the commission. In evaluating a plan for approval, modification, or rejection, the commission shall consider:

(1) the effect of the plan on current and potential competitors in the generation market; and

(2) whether the plan is consistent with the public interest.

(e) A retail electric provider with an approved plan may request that the commission amend or repeal the plan. The commission shall amend or repeal the plan on a showing of good cause.

SB 2012 was authored by Sen. Charles Schwertner and Sen. Phil King, and was included within a suite of bills unveiled by Lieutenant Governor Dan Patrick to address energy market reforms and winter storm Uri. Supporters of the bills include both Republicans and Democrats

This is a breaking news alert. More details on the suite of bills unveiled today will follow

Other bills include:

SB 6

SB 7

SB 2010

SB 2011

SB 2013

SB 1287

SB 2014

SB 2015


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