H.B. No. 1603 amends the Utilities Code 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. The bill introduces new subsections (f) and (g) to Section 39.159, which mandate the commission to develop a process for procuring emergency reserve power generation capacity 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.

Additionally, the bill requires the independent organization certified for the ERCOT power region to adopt procedures and enter contracts to ensure the availability of a defined amount of emergency reserve power generation capacity. Before utilizing this reserve capacity, the organization must exhaust 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)