Bill > HB3356

This bill modifies reliability requirements for electric generation facilities within the Electric Reliability Council of Texas (ERCOT) power region by updating existing regulations. Specifically, the bill changes the applicability of generator interconnection agreement penalties, exempting resources from penalties under certain conditions, such as when they demonstrate the ability to operate continuously for 24 hours at or above seasonal average generation capability, or when they have dual grid interconnections. The bill also requires the Public Utility Commission of Texas to explore alternative penalty methods, including settlement price caps and fixed reliability fees, and consider rebating collected penalties directly to consumers or redirecting them toward reliability incentives. The commission is granted flexibility to implement these financial penalties and incentives gradually over multiple years to minimize market disruptions and potential increased costs to consumers. The changes will take effect on September 1, 2025, and are designed to balance maintaining grid reliability with protecting consumer interests in the ERCOT power region.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3356