SB 231

relating to temporary emergency energy facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 39.918, Utilities Code, is amended by
amending Subsections (d) and (f) and adding Subsections (f-1),
(f-2), and (f-3) to read as follows:
(d)  A facility [Facilities] described by Subsection (b)(1):
(1)  must be operated in isolation from the bulk power
(2)  may not be included in independent system
(A)  locational marginal pricing calculations;
(B)  capable of being moved without a permit
required for superheavy, oversized, overweight, or overlength
equipment, commodities, or vehicles under Subtitle E, Title 7,
(C)  capable of generating electric energy within
three hours of being connected to a demand source; and
(4)  must have a maximum generation capacity of not
(f)  A transmission and distribution utility shall[, when
reasonably practicable,] use a competitive bidding process to lease
facilities under Subsection (b)(1).
(f-1)  A transmission and distribution utility may not enter
into a lease under Subsection (b)(1) unless:
(1)  the commission first approves the lease in a rate
proceeding or a separate contested case hearing; or
(2)  the lease includes a provision that allows
alteration of the lease based on commission order or rule.
(f-2)  Notwithstanding Subsections (f) and (f-1)(1), a
transmission and distribution utility may enter into a lease under
Subsection (b)(1) without competitive bidding or prior commission
(1)  the transmission and distribution utility lacks
the leased generating capacity necessary to aid in restoring power
to the utility's customers during a significant power outage; and
(2)  the amount of leased generating capacity does not
significantly exceed the amount of megawatts necessary to restore
electric service to the utility's customers during a significant
(f-3)  A transmission and distribution utility that enters
into a lease in the manner provided by Subsection (f-2) shall
provide documentation to justify the amount of leased generating
capacity during the first base rate proceeding after the date the
SECTION 2.  (a)  Not later than the 30th day after the
effective date of this Act, the Public Utility Commission of Texas
shall initiate a proceeding under Chapter 36, Utilities Code, to
review the rates of a transmission and distribution utility,
including the rate of return on investment established in the
commission's final order in the utility's most recent base rate
(1)  leased a facility to provide temporary emergency
electric energy under Section 39.918, Utilities Code, before the
effective date of this Act; and
(2)  did not deploy the facility to provide emergency
electric energy to the utility's customers during a significant
power outage that occurred during a major disaster declared by the
president of the United States under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. Section
(b)  If, during the proceeding initiated under Subsection
(a) of this section, the Public Utility Commission of Texas
determines that any rate charged or cost incurred by the
transmission and distribution utility is unreasonable or not
prudent based on a failure to deploy a leased facility as described
by Subsection (a) of this section or based on any other factor, the
(1)  revise the utility's rate of return on investment
(2)  order the utility to refund to customers any
SECTION 3.  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.