S.B. No. 388 aims to establish new legislative goals for electric generation capacity in Texas, specifically focusing on increasing the share of dispatchable generation in the ERCOT power region. The bill amends Section 39.9044 of the Utilities Code to mandate that 50 percent of the megawatts of generating capacity installed after January 1, 2026, must come from dispatchable generation sources other than 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. Notably, the bill excludes companies that exclusively operate battery energy storage resources from these requirements.

Additionally, the bill outlines the responsibilities of the commission in administering the dispatchable generation credits trading program, including establishing performance standards and compliance conditions. It also mandates the creation of a tracking system for dispatchable generation credits and requires annual reporting on compliance with the new generation capacity goals. The commission is tasked with activating the trading program by January 1, 2027, if it determines that dispatchable generation may provide less than 55 percent of new generating capacity installed after the specified date. 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)