SB 714

relating to electricity pricing rules and operating procedures that
eliminate or compensate for market distortion caused by certain
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter D, Chapter 39, Utilities Code, is
amended by adding Section 39.171 to read as follows:
Sec. 39.171.  MARKET DISTORTION RESPONSE.  (a)
Notwithstanding any other provision of this chapter, the commission
and the ERCOT independent system operator shall adopt rules,
operating procedures, and protocols to eliminate or compensate for
any distortion in electricity pricing in the ERCOT power region
caused by a federal tax credit provided under 26 U.S.C. Section 45.
(b)  Rules, operating procedures, and protocols adopted
under this section must ensure that costs imposed on the system by
the sale of electricity that is eligible for a federal tax credit
provided under 26 U.S.C. Section 45, including costs of maintaining
sufficient capacity to serve load at the summer peak demand caused
by the loss of new investment from below-market prices, are paid by
the parties that impose the costs.
(c)  In conjunction with adopting rules, operating
procedures, and protocols under this section, the commission and
the ERCOT independent system operator shall eliminate any rules,
operating procedures, or protocols that attempt to adjust
electricity prices to reflect the value of reserves at different
reserve levels based on the probability of reserves falling below
the minimum contingency level and the value of lost load.
SECTION 2.  This Act takes effect September 1, 2025.