The bill, H.B. No. 3970, introduces new regulations regarding the interconnection of large loads in the Texas electricity market. It adds Section 39.169 to the Utilities Code, which defines terms such as "behind-the-meter generation" and "flexible load." The bill mandates the establishment of a program by the commission to expedite the interconnection process for large loads, prioritizing those with approved expedited processing. It outlines the requirements for a large load to qualify for expedited processing, including the necessity of having behind-the-meter generation operational within 180 days of the interconnection date or meeting specific criteria related to peak demand and contractual obligations.

Additionally, the bill stipulates that large loads qualifying for expedited processing may engage approved vendors for necessary studies and procure equipment for interconnection. It also allows for the evaluation of flexible loads as non-firm in required studies and ensures that demand reductions during energy emergencies are counted towards load-shedding obligations. An administrative penalty will be imposed on owners or operators of large loads that fail to comply with the new requirements. The provisions of this act will take effect on September 1, 2025.

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