The bill amends Section 39.918 of the Utilities Code to establish new requirements for temporary emergency energy facilities. It specifies that such facilities must be mobile, capable of being moved without a special permit, able to generate electric energy within three hours of connection to a demand source, and have a maximum generation capacity of five megawatts. Additionally, it modifies the leasing process for these facilities, requiring that a transmission and distribution utility must obtain commission approval before entering into a lease unless certain conditions are met, such as the utility lacking the necessary capacity to restore power during significant outages.

Furthermore, the bill mandates that the Public Utility Commission of Texas review the rates of any transmission and distribution utility that leased a facility for temporary emergency electric energy but failed to deploy it during a significant power outage in 2024. If the commission finds any rates charged or costs incurred to be unreasonable or imprudent, it is required to adjust the utility's rate of return on investment or order refunds to customers. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

Statutes affected:
Introduced: Utilities Code 39.918 (Utilities Code 39)