Authored by Representative Jared Patterson, HB 3356 proposes amendments to Section 39.1592(a) of the Utilities Code, which pertains to reliability requirements for electric generation facilities in the ERCOT power region of Texas. This bill changes the applicability of the reliability requirements established in HB 1500 (2023) to all generators and moves forward the effective date of the requirement from January 1, 2028, to January 1, 2027.
A uniform standard for all generators—not just new generators—is essential to ensure that new generators are not advantaged or disadvantaged relative to existing generators. A uniform standard is also needed to ensure that the volatility cost of existing generation is accounted for. ERCOT estimates that 90 GW of wind and solar will be operational in the region by the end of 2026, with only about 15 GW of new generation being added every year (ERCOT, 2024). Therefore, a reliability standard for new generators only will take many years to provide meaningful benefits to Texas ratepayers. With rapid demand growth projected for the rest of this decade, HB 3356 will ensure that the reliability of the ERCOT grid will be improved now instead of years from now.