Under current Texas law, the state prohibits any one power generation company from controlling more than 20 percent of generation capacity in the state. This ban was put in place as part of the 1999 electric market reforms.
This week, Rep. Matt Krause (R-Fort Worth) filed HB 962 which removes the 20 percent cap on control. HB 962 also prohibits Texas’ Public Utility Commission (PUC) from switching the state to a “capacity market” instead of the current structure of an “energy only” market. Critics suggest that this legislation could be harmful to consumers by opening the door for rate abuses or creating a monopoly or duopoly. Other analysts say the cap stifles competition and investment in Texas’ electric generation infrastructure, and there are enough safeguards in place for consumer protection.
The Greater Irving-Las Colinas Chamber’s Legislative Priorities Guide supports a balanced approach to regulatory policies that allow for a cost-efficient expansion of the electric grid system to serve Texas’ continued growth and to ensure businesses can continue to expand and attract new investment and maintain reliable service. Thus, the Chamber will be monitoring the progress of HB 962 during the legislative session.
Please don’t hesitate to contact Ty Petty, Director of Legislative Advocacy regarding this, or other legislative issues.