HB 3374

Tax Credit Pricing Bill Also Scraps Reserve-Based Price Adjustments

Died in committee

Verdict: Smells

SmellsInitial review

Rep. Jared PattersonRHouse 106

Why it's charged

Rider: Caption mismatch

THE CAPTION

“relating to electricity pricing rules and operating procedures that eliminate or compensate for market distortion caused by certain federal tax credits.”

Caption, introduced version (I)

THE RIDER

…“shall eliminate any rules, operating procedures, or protocols that attempt to adjust electricity prices to reflect the value of reserves at different reserve levels”…

Bill text, introduced version (I)

The caption covers only rules aimed at distortion from federal tax credits. Subsection (c) separately wipes out reserve-based price adjustments, which have nothing to do with tax credits in the text.

Rider: Caption mismatch

Initial review · graded Oct 22, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to electricity pricing rules and operating procedures that eliminate or compensate for market distortion caused by certain federal tax credits.

Caption from analyzed text · version I.

Summary

Caption: federal tax credit distortion. Bill: also scraps rules pricing in “the value of reserves.”

The bill orders the Public Utility Commission and ERCOT to write rules that cancel out or offset any electricity price distortion caused by a federal tax credit under 26 U.S.C. Section 45. It touches power generators that sell credit-eligible electricity, who must pay the system costs their sales impose, including the cost of keeping enough capacity for summer peak demand. It also orders regulators to scrap existing rules that raise electricity prices based on how low reserves are running and the value of lost load, which is a separate pricing tool the caption does not mention.

Labels

Labels: NEVER GOT A HEARING. Filed Feb 26, 2025 and referred to the House State Affairs committee. No public hearing. The bill died.

Receipt

The receipt

89R-HB3374 · 2025-02-26

SOLD BY

Rep. Jared PattersonRHouse 106

ITEM

relating to electricity pricing rules and operating procedures that eliminate or compensate for market distortion caused by certain federal tax credits.

WHAT IT DOES

Caption: federal tax credit distortion. Bill: also scraps rules pricing in “the value of reserves.”

CHARGES

[x] RIDER: CAPTION MISMATCHanalysis confidence 70%

THE CAPTION

“relating to electricity pricing rules and operating procedures that eliminate or compensate for market distortion caused by certain federal tax credits.”

Caption, introduced version (I)

THE RIDER

…“shall eliminate any rules, operating procedures, or protocols that attempt to adjust electricity prices to reflect the value of reserves at different reserve levels”…

Bill text, introduced version (I)

The caption covers only rules aimed at distortion from federal tax credits. Subsection (c) separately wipes out reserve-based price adjustments, which have nothing to do with tax credits in the text.

TOTAL

No fiscal note in the loaded record.

HISTORY

Feb 26, 2025Filed
Mar 21, 2025Read first time
Mar 21, 2025Referred to State Affairs
Apr 30, 2025Scheduled for public hearing on . . .
Apr 30, 2025Scheduled for public hearing on . . .

FILED UNDER

DATA CENTERS, WATER AND THE GRID

THE TEXT

…“are paid by the parties that impose the costs.”

Bill text, introduced version (I)

The bill shifts grid reliability costs onto sellers of tax-credit-eligible electricity and removes reserve-based price signals in the ERCOT market.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Jared Patterson

Donors

Texans for Lawsuit Reform PAC$133K Texas Sands PAC$85K Texas Conservative Majority PAC$58K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$132,750.00

Texans for Lawsuit Reform PAC

$132,750.00

Cash: $100,000.00
Paid by others: $32,750.00
Total: $132,750.00

polling $32,750.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 25, 2025 to Oct 7, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100996442, 101018590, 101035748, 101067950, 101072483.

Texas Sands PAC$84,800.00

Texas Sands PAC

$84,800.00

Cash: $68,000.00
Paid by others: $16,800.00
Total: $84,800.00

polling $16,800.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 4, 2024 to Oct 15, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100976997, 101018590, 101035748, 101072483.

Texas Conservative Majority PAC$57,950.00

Texas Conservative Majority PAC

$57,950.00

Cash: $0.00
Paid by others: $57,950.00
Total: $57,950.00

canvassing $35,000.00polling $22,950.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Feb 12, 2026 to Sep 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101035748, 101067950.

Money

Missing data does not establish zero giving. Display amounts are rounded.

Texans for Lawsuit Reform PAC

$132,750.00

Cash: $100,000.00
Paid by others: $32,750.00
Total: $132,750.00

polling $32,750.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 25, 2025 to Oct 7, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100996442, 101018590, 101035748, 101067950, 101072483.

Texas Sands PAC

$84,800.00

Cash: $68,000.00
Paid by others: $16,800.00
Total: $84,800.00

polling $16,800.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 4, 2024 to Oct 15, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100976997, 101018590, 101035748, 101072483.

Texas Conservative Majority PAC

$57,950.00

Cash: $0.00
Paid by others: $57,950.00
Total: $57,950.00

canvassing $35,000.00polling $22,950.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Feb 12, 2026 to Sep 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101035748, 101067950.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Adversarial review by claude-opus-5-5 at high effort: sent to the editor.

Analysis of text version I by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas House · Filed Feb 26, 2025

04/30/2025 H Scheduled for public hearing on . . .

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · State Affairs · Final status: Died in committee

Companion

SB 714 by Sparks (identical)

Subjects

Utilities--Electric

ELECTRIC RELIABILITY COUNCIL OF TEXAS (ERCOT)

PUBLIC UTILITY COMMISSION

Text

The text as introduced · 261 words

89R4479 CXP-F

By: Patterson
H.B. No. 3374

A BILL TO BE ENTITLED

AN ACT

relating to electricity pricing rules and operating procedures that

eliminate or compensate for market distortion caused by certain

federal tax credits.

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.