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 resources can avoid penalties, including demonstrating the ability to operate continuously for 24 hours at or above seasonal average generation capability, either through their own resources or contracts with other resources, including battery storage.

Additionally, the Public Utility Commission of Texas is tasked with exploring various methods for imposing penalties and considering the rebate of penalties to consumers or redirecting them towards reliability incentives. The commission may also implement financial penalties and incentives in a phased approach over several years to avoid market disruptions that could lead to increased costs for consumers. The bill 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)