The bill amends Section 37.056 of the Utilities Code to introduce new criteria for the approval of certificates of convenience and necessity for certain transmission projects in the ERCOT power region. Specifically, it adds Subsections (d-1) and (d-2), which require the Public Utility Commission of Texas to establish multi-decade transmission planning criteria that evaluate potential cost savings for consumers. These criteria may include methods such as discount rates, hurdle rates, and scenario planning. Additionally, the commission is allowed to consider evaluations conducted by an independent organization certified under Section 39.151 when deciding on certificate applications.

The bill mandates that the Public Utility Commission adopt necessary rules to implement these changes by September 1, 2026, and directs the certified independent organization to take actions for implementation by the same date. The new provisions will only apply to proceedings affecting certificates of public convenience and necessity that commence on or after September 1, 2026, ensuring that any ongoing proceedings before that date will follow the existing law. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Utilities Code 37.056 (Utilities Code 37)
House Committee Report: Utilities Code 37.056 (Utilities Code 37)
Engrossed: Utilities Code 37.056 (Utilities Code 37)