Senate Bill No. 388 aims to establish new goals for electric generation capacity in Texas, specifically focusing on increasing the share of dispatchable generation sources. The bill amends Section 39.9044 of the Utilities Code to state that 50 percent of the megawatts of generating capacity installed in the ERCOT power region after January 1, 2026, should come from dispatchable generation, excluding battery energy storage. The bill also introduces a dispatchable generation credits trading program, requiring power generation companies, municipally owned utilities, and electric cooperatives to purchase credits if they do not meet the dispatchable generation requirements through direct ownership or purchasing rights.

Additionally, the bill outlines the responsibilities of the commission in administering this program, including establishing rules for compliance and performance standards for dispatchable generation capacity. It mandates the commission to activate the trading program by January 1, 2027, if dispatchable generation constitutes less than 55 percent of new generating capacity installed after the specified date. The bill also clarifies the definition of dispatchable generation and includes provisions for tracking and reporting on compliance with the new requirements. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Utilities Code 39.9044, Utilities Code 40.004 (Utilities Code 40, Utilities Code 39)
Senate Committee Report: Utilities Code 39.9044, Utilities Code 40.004 (Utilities Code 40, Utilities Code 39)
Engrossed: Utilities Code 39.9044, Utilities Code 40.004 (Utilities Code 40, Utilities Code 39)