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 bill introduces new provisions that prevent the independent organization from imposing penalties for resource unavailability due to planned maintenance or transmission outages, and it outlines conditions under which penalties cannot be applied, including resources that can operate for 24 continuous hours at or above their seasonal average generation capability, as well as those with dual grid interconnections.

Additionally, the Public Utility Commission of Texas is tasked with exploring various methods for imposing penalties and considering the use of a settlement price cap and a fixed reliability fee. The commission is also encouraged to rebate penalties collected directly to consumers or redirect them towards reliability incentives, prioritizing actions that maximize financial benefits for consumers while ensuring reliability in the ERCOT power region. The implementation of financial penalties and incentives may occur in a phased manner to avoid market disruptions, with the bill 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)