HB 1603

relating to the authority of the Public Utility Commission of Texas
to ensure the independent organization certified for the ERCOT
power region has adequate reserve power to prevent blackout
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 39.159, Utilities Code, is amended by
adding Subsections (f) and (g) to read as follows:
(f)  The commission by rule shall develop a process for
procuring emergency reserve power generation capacity, in addition
to ancillary and reliability services procured under Subsections
(b) and (d), as necessary to prevent blackout conditions caused by
shortages of generated power in the ERCOT power region.  The rules
(1)  parameters for estimating the amount of emergency
reserve power generation capacity necessary to prevent blackout
(2)  mechanisms for equitably sharing the costs of
making the reserve capacity available and the costs of generated
power provided to prevent blackout conditions.
(g)  In accordance with rules adopted under Subsection (f),
the independent organization certified under Section 39.151 for the
ERCOT power region shall adopt procedures and enter contracts as
necessary to ensure the availability of a defined amount of
emergency reserve power generation capacity the organization may
call on to prevent blackouts caused by shortages of generated
power.  Before the independent organization calls on the emergency
reserve power generation capacity to prevent blackout conditions,
the organization shall use all other sources of power and demand
reduction available in accordance with commission rules adopted
SECTION 2.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.