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. It also removes the previous restriction that only utilities operating outside of ERCOT could utilize this financing mechanism.

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 act will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect on September 1, 2025.

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)