The bill proposes the addition of Section 39.171 to Subchapter D, Chapter 39 of the Utilities Code, focusing on the evaluation and use of grid enhancing technologies and high-performance conductors within the ERCOT power region. It defines "grid enhancing technology" as hardware or software that improves the performance of the electric transmission system, and "high-performance conductors" as modern conductor technologies that offer enhanced capacity and efficiency. The bill mandates that the independent organization certified under Section 39.151 periodically evaluate the potential use of these technologies to increase transmission capacity, reduce congestion, enhance reliability, improve safety over water crossings, and mitigate wildfire risks.

Furthermore, the independent organization is tasked with preparing a report on available technologies and conductors for electric utilities and cooperatives, which may include recommendations based on feasibility and cost-effectiveness. Electric utilities must also include an evaluation of the integration of these technologies in their applications for new or amended certificates of convenience and necessity for transmission projects. The Public Utility Commission of Texas is required to adopt necessary rules to implement this section by January 1, 2026, with the act taking effect on September 1, 2025.

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