S.B. No. 1963 introduces a financing mechanism for electric utilities in Texas to recover costs associated with weather-related events or other natural disasters. The bill amends Section 36.451 of the Utilities Code, allowing electric utilities to apply for securitization and the issuance of system restoration bonds for estimated and actual restoration costs of $50 million or more in any calendar year. The previous restriction that limited this mechanism to utilities operating solely outside of ERCOT has been removed.

Additionally, the bill amends Section 36.456 by adding new subsections that outline the process for electric utilities to file applications for determining eligible restoration costs and obtaining financing orders. The commission is required to issue a determination and financing order within 150 days of the application, and it establishes that estimated costs will be subject to true-up and reconciliation once actual costs are known. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

Statutes affected:
Introduced: Utilities Code 36.451, Utilities Code 36.456 (Utilities Code 36)
Senate Committee Report: Utilities Code 36.451, Utilities Code 36.456 (Utilities Code 36)
Engrossed: Utilities Code 36.451, Utilities Code 36.456 (Utilities Code 36)
House Committee Report: Utilities Code 36.451, Utilities Code 36.456 (Utilities Code 36)
Enrolled: Utilities Code 36.451, Utilities Code 36.456 (Utilities Code 36)