Relating to temporary emergency electric energy facilities, the official text

S.B. No. 231

AN ACT

relating to temporary emergency electric 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), (f-3), and (f-4) to read as follows:

(d) A facility [Facilities] described by Subsection (b)(1):

(1) must be operated in isolation from the bulk power

system; [and]

(2) may not be included in independent system

operator:

(A) locational marginal pricing calculations;

(B) pricing; or

(C) reliability models;

(3) must be:

(A) mobile;

(B) capable of being moved from its staged

location in less than 12 hours; and

(C) capable of generating electric energy within

three hours after being connected to a demand source; and

(4) must have a maximum generation capacity of not

more than five megawatts.

(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, in a rate proceeding or a

separate contested case hearing, authorizes:

(A) the total generating capacity the utility may

lease; and

(B) the functions for which the utility may lease

facilities and the generation capacity the utility may lease for

each function; or

(2) the lease includes a provision that allows

alteration of the lease based on commission order or rule.

(f-2) The commission may limit the period during which an

authorization issued under Subsection (f-1) is valid.

(f-3) 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

approval if:

(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;

(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

power outage; and

(3) the term of the lease does not significantly

exceed the time period that is required to restore electric service

to the utility's customers during a significant power outage.

(f-4) A transmission and distribution utility that enters

into a lease in the manner provided by Subsection (f-3) shall

provide documentation to justify the amount of leased generating

capacity during the first base rate proceeding after the date the

lease begins.

SECTION 2. The changes in law made by this Act to Section

39.918(d), Utilities Code, apply only to a temporary emergency

electric energy facility leased by a transmission and distribution

utility on or after the effective date of this Act. A temporary

emergency electric energy facility that was leased by a

transmission and distribution utility under Section 39.918(b)(1),

Utilities Code, before the effective date of this Act is governed by

the law in effect at the time the lease was executed, and the former

law is continued in effect for that purpose.

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.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 231 passed the Senate on

April 16, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 231 passed the House on

May 21, 2025, by the following vote: Yeas 145, Nays 0, two

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor