The bill amends the Utilities Code to establish reliability requirements for electric generation facilities in the ERCOT power region. It specifies that these requirements apply only to facilities that have been operational for at least one year and are not self-generators. The independent organization overseeing ERCOT is restricted from imposing penalties for resource unavailability due to planned maintenance or transmission outages, and it cannot penalize resources that can demonstrate the ability to operate for 24 continuous hours at or above their seasonal average generation capability. Additionally, resources with dual grid interconnections that provide dispatchable generation are also exempt from penalties.

Furthermore, the Public Utility Commission of Texas is tasked with exploring various methods for imposing penalties, including a settlement price cap and a fixed reliability fee. The commission is encouraged to consider rebating penalties to consumers or redirecting them towards reliability incentives, prioritizing actions that maximize financial benefits for consumers while ensuring reliability needs are met. The bill allows for a phased implementation of financial penalties and incentives to avoid market disruptions that could lead to increased costs for consumers. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Utilities Code 39.1592 (Utilities Code 39)
House Committee Report: Utilities Code 39.1592 (Utilities Code 39)