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HB 3069

AN ACT relating to the approval of a certificate of convenience and

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Committee

Not yet assigned

Fiscal Note

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What This Bill Does

Modifies how transmission projects in the ERCOT power region are approved by requiring the Public Utility Commission to establish new criteria for evaluating transmission projects not tied to reliability standards. The criteria must include a comprehensive 10-year cost comparison that analyzes estimated project costs against potential congestion cost savings, using a specific three percent discount rate for long-term savings calculations. The new rules will apply to transmission project certificate applications filed on or after September 1, 2025, potentially impacting electricity infrastructure development and consumer costs.

Subject Areas

Bill Text

relating to the approval of a certificate of convenience and
necessity for certain transmission projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 37.056(d), Utilities Code, is amended to
(d)  The commission by rule shall establish criteria, in
addition to the criteria described by Subsection (c), for granting
a certificate for a transmission project that serves the ERCOT
power region and that is not necessary to meet state or federal
reliability standards.  The criteria must include a comparison over
a period of not less than 10 years of the estimated cost of the
transmission project for consumers and the estimated congestion
cost savings for consumers that may result from the transmission
project, considering both current and future expected congestion
levels and the transmission project's ability to reduce those
congestion levels.  The criteria must apply a three percent
discount rate to the quantified value of the congestion cost
savings after the fifth year of the comparison period. The
commission shall include with its decision on an application for a
certificate to which this subsection applies findings on the
SECTION 2.  The changes in law made by this Act apply only to
a proceeding affecting a certificate of public convenience and
necessity that commences on or after the effective date of this Act.
A proceeding affecting a certificate of public convenience and
necessity that commenced before the effective date of this Act is
governed by the law in effect on the date the proceeding is
commenced, and that law is continued in effect for that purpose.
SECTION 3.  This Act takes effect September 1, 2025.

Bill History

filed

Bill filed: AN ACT relating to the approval of a certificate of convenience and