Known as “Interim Charges,” the instructions to various legislative committees include those relating to the implementation Senate Bill 3, which was adopted in 2021 in response to Winter Storm Uri that year.

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State lawmakers should consider the effects of broad energy reforms they enacted earlier — including those adopted in response to the ERCOT grid crisis five years ago — under special legislative instructions released by Texas House and Senate leaders.

Known as “Interim Charges,” the instructions to various legislative committees include those relating to the implementation Senate Bill 3, which was adopted in 2021 in response to Winter Storm Uri that year. In all, 49 charges pertaining to energy and a wide variety of other topics were released to House committees on March 26 by House Speaker Dustin Burrows. On the Senate side, Lt. Gov. Dan Patrick released 69 charges to that chamber’s various legislative committees.

Much of the Texas power grid went dark five years ago because of Uri, a calamity that led to at least 200 deaths and prolonged power outages for millions. The inclusion of interim charges related to that storm is yet another sign that its effects continue reverberating across the state’s political and energy landscapes. Winter Storm Uri related litigation also continues in Texas courts.

For the Senate, it is the Committee on Business and Commerce that handles electric utility issues and ERCOT. For the House, it’s the State Affairs Committee.

Some of the relevant charges assigned to the Senate Business and Commerce committee include:

  • Assessing the State of the Texas Electric Grid: Monitor rulemaking related to Senate Bill 6, 89th Legislature, including large-load interconnection rules, cost allocation of transmission costs, and the progress made toward increasing confidence in ERCOT load forecasts. Examine previous efforts to strengthen the reliability and resiliency of the Texas electric grid, including the Texas Energy Fund and post-Winter Storm Uri reforms at both the PUC and ERCOT and implementation of Senate Bills 2 and 3, from the 87th Legislature. Evaluate the competitiveness of the ERCOT market to determine whether further changes are necessary to support a robust energy-only market.
  • Transmission and Property Rights: Managing the Impacts of 765-kv Transmission Lines on private property rights. Review the proposed 765-kv transmission line route plans to determine their impact on homes, businesses, and communities. Recommend ways to improve transmission planning, permitting, and siting decisions.
  • Modernizing Transmission: Consider proposals to improve transmission planning, construction, and ratemaking processes to protect everyday Texans from rising electricity costs. Evaluate ways to maximize existing transmission infrastructure and reduce congestion through the integration of residential distributed energy resources, energy storage, and other grid technologies. Review ERCOT’s proposed changes to its interconnection process.
  • Managing Data Center Growth: Study the adequacy of current statutory, regulatory, and infrastructure frameworks to meet the rapidly increasing demand from large electric loads, such as data centers. Recommend ways to balance economic development benefits of this growth against the impacts on landowners, private property rights, water infrastructure, and community integrity.

Meanwhile, Speaker Burrows’ charges to the House State Affairs committee include:

  • Legislative Monitoring: Monitor the implementation of legislation enacted the Texas Legislature, including HB 14, relating to support for the development of the nuclear energy industry; HB 144, relating to plans for the management and inspection of distribution poles; HB 145, relating to risk mitigation planning and associated liability for providers of electric service; SB 6, relating to the planning for, interconnection and operation of, and costs related to providing service for certain electrical loads and to the generation of electric power by a water supply or sewer service corporation; and SB 1789, relating to electric service quality and reliability.
  • Battery Storage: Examine the current rules and regulations regarding battery storage and safety. Evaluate potential risks to communities.
  • Microgrids and Distributed Energy Resources: Evaluate existing aggregated distributed energy resource projects and micro-grids across the state. Consider how these projects improve reliability, reduce consumer costs, and support overall grid resilience.
  • Data Centers: Study the development of data centers in Texas. Review the existing regulatory framework governing data center development.

— R.A. Dyer