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. This subsection also requires the establishment of parameters for estimating the necessary reserve capacity and mechanisms for equitably sharing the associated costs.

Subsection (g) stipulates that the independent organization certified for the ERCOT power region must adopt procedures and contracts to ensure the availability of a defined amount of emergency reserve power generation capacity. Before utilizing this reserve capacity, the organization is required to 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 of the legislature; otherwise, it will take effect on September 1, 2025.

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