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Texas power grid reform package passed in Texas Senate

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Published  April 6, 2023 4:54pm CDT
Texas Politics
FOX 26 Houston

Lt. Gov. offers Senate solutions for the Texas power grid

EDITORS NOTE: This video is from a previous story. Lt. Governor Dan Patrick lays out the Texas Senate plan to secure the power grid and increase reliability for all Texans

HOUSTON - A package aimed to reform the state's power grid passed on Wednesday in the Texas Senate.

The reform includes Senate Bill 6, Adding New Natural Gas Plants, SB 7, Continuing to Improve the Texas Grid, SB 2010, SB 2011, SB 2012, SB 2013, and Senate Joint Resolution 1, by Sen. Charles Schwertner, R-Georgetown, and SB 1287, SB 2014, and SB 2015 by Sen. Phil King, R-Weatherford.

SUGGESTED: Power grid reforms: Texas officials announce agenda to fix grid 'once and for all'

Lieutenant Governor Dan Patrick released a statement following the passing of the package. The Lt. Gov said this:

"Since Winter Storm Uri, I have been abundantly clear that we must bring new dispatchable generation (primarily new natural gas plants) online as soon as possible to make sure that Texans have reliable power under any circumstance. The Senate’s grid reform package levels the playing field between dispatchable and renewable energy sources by elevating dispatchable energy sources to put ratepayers first." This package passed with a strong bipartisan majority because the Texas Senate and I recognize the importance of protecting lives that can be lost during a blackout. We also know improving our grid is essential for the Texas Miracle to continue throughout the 21st century. Texas’ economy is booming and we must have reliable generation to meet ever-increasing demand."'

The following Senate Bills are included in the power grid reform and what's included in them:

  • SB 6 establishes the Texas Energy Insurance Program, outside of the competitive market, to operate 10,000 megawatts of natural gas or similar sources to ensure sufficient power is available at all times. It also creates a low-interest loan program to maintain older dispatchable generation plants, similar to the State Water Implementation Fund for Texas (SWIFT) for water infrastructure. This is not a tax on ratepayers. This is a smart usage of our multi-billion dollar budget surplus that will save ratepayers money over time by reducing interest rates from 6-7% to 0% for the financing of new generation plants.
  • SB 7 creates a new ancillary service for dispatchable generators and a calculation that the Electric Reliability Council of Texas (ERCOT) can use to require generation to firm up to be more reliable.
  • SB 1287 requires the Public Utility Commission of Texas (PUC) to establish a cost cap for generation interconnection costs to reduce transmission costs for consumers.
  • SB 2010 requires the Independent Market Monitor to report all potential market manipulations and all discovered or potential violations of PUC or ERCOT rules to be delivered in writing to PUC staff and requires the PUC to produce public annual reports.
  • SB 2011 updates Voluntary Mitigation Plan (VMP) requirements to ensure such plans provide meaningful protections against market power abuses.
  • SB 2012 places guardrails on the Performance Credit Mechanism (PCM) adopted by the PUC.
  • SB 2013 adds protections to prevent attacks on the Texas power grid.
  • SB 2014 eliminates Renewable Energy Credits to level the playing field between renewable generation and dispatchable generation.
  • SB 2015 creates a goal of 50% dispatchable energy for the ERCOT grid to level the playing field between dispatchable and renewable generation