Bill Caption

Relating to the response and resilience of certain electricity service providers to major weather-related events or other natural disasters; granting authority to issue bonds.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

HB 1510 would create the Texas Electric Utility System Restoration Corporation to provide a low cost financing mechanism available to the Public Utility Commission for an electric utility outside of the ERCOT power grid to attract capital to finance costs associated with system restoration. The Public Utility Commission would be required to insure securitization benefits consumers. It would prohibit providing any state money to the corporation.

HB 1510 would set additional criteria the PUC must consider when determining whether to grant a certificate of convenience and necessity such as potential economic or reliability benefits associated with dual fuel and fuel storage capabilities in areas outside the ERCOT power region.

HB 1510 would amend the law so that system restoration costs also include reasonable and necessary weatherization and storm-hardening costs incurred, as well as estimates of costs to be incurred by the electric utility.

Vote Recommendation Notes

Texas Action remains neutral on HB 1510 as it does not impact our liberty principles. The state has a legitimate interest in the security and integrity of the electric grid and this proposal appears to address those issues without adding undue burden to taxpayers or electricity providers.