Bill > SB388

This bill modifies Texas's electric generation capacity goals by replacing previous language about natural gas with a new framework for "dispatchable generation" in the Electric Reliability Council of Texas (ERCOT) power region. The legislation establishes a goal that 50 percent of new generating capacity installed after January 1, 2026, must come from dispatchable generation sources other than battery energy storage. The Public Utility Commission will be required to create a credits trading program where power generation companies, municipal utilities, and electric cooperatives must either directly own dispatchable generation capacity or purchase dispatchable generation credits to meet the requirements. If the commission determines that dispatchable generation may provide less than 55 percent of new generating capacity after January 1, 2026, it must activate the credits trading program by January 1, 2027. The bill defines dispatchable generation as generating technologies that are not considered non-dispatchable under existing law, and includes provisions for tracking and awarding credits, with special considerations for nuclear generation facilities. Notably, companies that exclusively operate battery energy storage resources are exempt from these requirements. The legislation aims to ensure grid reliability and encourage the development of flexible, dependable electricity generation sources in Texas.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB388