Bill > SB714

This bill requires the Public Utility Commission of Texas and the Electric Reliability Council of Texas (ERCOT) to create new rules and procedures to address market distortions caused by federal tax credits, specifically the Production Tax Credit (PTC) under 26 U.S.C. Section 45, which is commonly used to incentivize renewable energy production. The legislation mandates that any costs resulting from electricity sales eligible for these tax credits - including expenses related to maintaining sufficient grid capacity due to potential investment losses from below-market pricing - must be directly attributed to and paid by the parties creating those costs. Additionally, the bill directs regulators to eliminate existing rules that adjust electricity prices based on probabilistic reserve level calculations, effectively changing how electricity pricing and grid reliability are managed. The new rules and procedures are designed to ensure that the financial impacts of federal tax credit-supported electricity generation do not unfairly distort the Texas electricity market, with the changes set to take effect on September 1, 2025.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB714