The bill, H.B. No. 1603, aims to enhance the authority of the Public Utility Commission of Texas regarding the management of emergency reserve power generation capacity in the ERCOT power region. It introduces new provisions in Section 39.159 of the Utilities Code, specifically adding Subsections (f) and (g). Subsection (f) mandates the commission to develop a process for procuring emergency reserve power generation capacity, alongside existing ancillary and reliability services, to prevent blackout conditions due to power shortages. The rules established must include parameters for estimating the necessary reserve capacity and mechanisms for equitably sharing the associated costs.

Subsection (g) requires the independent organization certified for ERCOT to adopt procedures and contracts to ensure the availability of a defined amount of emergency reserve power generation capacity. This capacity can be activated to prevent blackouts caused by power shortages, but the organization must first utilize all other available power sources and demand reduction options as per the commission's rules. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Utilities Code 39.159 (Utilities Code 39)