Vote Smart's Synopsis:

Vote to pass a bill that requires 50% of new energy generating capacity to be sourced from dispatch generators other than battery energy storage in Texas.

Highlights:

• Establishes a new “dispatchable” power credits trading program that effectively requires utilities, generation companies, and electric cooperatives in the Electric Reliability Council of Texas territory to offset new renewables and battery capacity with an equal amount of new dispatchable capacity beginning as early as next year (Sec. 1-2).

• Amends the definition of “dispatchable” to exclude batteries while also exempting power generation companies that exclusively operate battery energy storage systems from the dispatchable power generation requirement (Sec. 1-2).

• Defines “non-dispatchable” generation facilities as those whose output is controlled primarily by forces outside of human control (Sec. 1-2).

• Requires the Texas Public Utilities Commission (PUC) to establish a program through which covered utilities and power generation companies would buy dispatchable power credits to cover any deficit in dispatchable generation capacity under the companies’ ownership or control (Sec. 1-2).

• Specifies that each megawatt of qualifying dispatchable capacity would qualify for one credit (Sec. 1-2).

• Requires that the PUC activate the credit trading program if it “determines that dispatchable generation may provide less than 55% of all new generating capacity installed in the ERCOT power region after January 1, 2026 (Sec. 1-2).

• Specifies that the provisions of his bill shall take effect beginning September 1, 2025 (Sec. 3).

Full Bill Text