The bill, S.B. No. 2434, aims to amend the Utilities Code by adding Section 121.159, which establishes a prioritization framework for natural gas deliveries during curtailment events. The new section defines "human needs customers" to include residences, hospitals, water and wastewater facilities, emergency service locations, small commercial customers that cannot be curtailed without affecting human needs, natural-gas-fired electric generation facilities, and any other customers identified by the railroad commission.

Under this legislation, if a gas utility anticipates that its ability to deliver natural gas may become inadequate, it is required to prioritize deliveries to natural-gas-fired electric generation facilities on par with other human needs customers and local distribution systems serving those customers. This prioritization is intended to ensure that essential services and facilities maintain access to natural gas during times of limited supply. The bill is set to take effect on September 1, 2025.

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