Monitoring the Session

HB 3896

water and sewer corporations get to make their own power

Died in committee

Verdict: No flags

No flagsInitial review
Rep. Richard Peña RaymondDHouse 42

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 the generation of electric power by a water supply or sewer service corporation.

Caption from analyzed text · version H.

Summary

Wholesale ones in counties under 350K can sell the extra to ERCOT.

The bill lets nonprofit water supply and sewer service corporations generate their own electricity to run well pumps, treatment plants and delivery systems. It also lets corporations that operate only as wholesale water or sewer suppliers, in counties with fewer than 350,000 people, sell extra power into the ERCOT grid if they register as power generation companies. Any money from those power sales can only go to the cost of making and selling the power or to the corporation's existing water and sewer purposes.

Labels

Labels: GOT HALFWAY. Passed the House on May 8, 2025. Died in the Senate: never got out of the Business & Commerce committee.

Receipt

The receipt

89R-HB3896 · 2025-03-06

SOLD BY

Rep. Richard Peña RaymondDHouse 42

ITEM

relating to the generation of electric power by a water supply or sewer service corporation.

WHAT IT DOES

Wholesale ones in counties under 350K can sell the extra to ERCOT.

The bill lets nonprofit water supply and sewer service corporations generate their own electricity to run well pumps, treatment plants and delivery systems. It also lets corporations that operate only as wholesale water or sewer suppliers, in counties with fewer than 350,000 people, sell extra power into the ERCOT grid if they register as power generation companies. Any money from those power sales can only go to the cost of making and selling the power or to the corporation's existing water and sewer purposes.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · April 25, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to State Affairs
  4. Posting rule suspended
  5. Scheduled for public hearing on . . .
  6. Considered in public hearing
  7. Committee substitute considered in committee
  8. Testimony taken/registration(s) recorded in committee
  9. Left pending in committee
  10. Considered in public hearing
  11. Committee substitute considered in committee
  12. Reported favorably as substituted
  13. Comte report filed with Committee Coordinator
  14. Committee report distributed
  15. Committee report sent to Calendars
  16. Considered in Calendars
  17. Placed on General State Calendar
  18. Read 2nd time
  19. Passed to engrossment
  20. Record vote RV#1659
  21. Statement(s) of vote recorded in Journal
  22. Read 3rd time
  23. Passed
  24. Record vote RV#1774
  25. Reported engrossed
  26. Received from the House
  27. Read first time
  28. Referred to Business & Commerce
FILED UNDER

DATA CENTERS, WATER AND THE GRID

THE TEXT

…“may generate excess electric power in conjunction with the uses described in Subsection (a) for sale in the ERCOT power region to provide revenue for the corporation”…

Bill text, House committee report version (H)

The bill lets certain small-county wholesale water and sewer corporations become power sellers on the ERCOT grid, with the revenue tied to their operations.

SIGNED FOR BY

House · 145 yea · 0 nay

Sources

House: Final passage · May 8, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Richard Peña Raymond

Donors

PG Rental & Leasing Financial LLC$70KBlackstone Dilworth JR$65,000Wyatt Ranches of Texas LLC$60K

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 · Jul 17, 2024 to Oct 24, 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.

PG Rental & Leasing Financial LLC$70,000.00

PG Rental & Leasing Financial LLC

$70,000.00

Cash
$70,000.00
Paid by others
$0.00
Total
$70,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · Oct 30, 2024 to Sep 28, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Oct 30, 2024 to Sep 28, 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: 100968808, 101007425, 101036903, 101073060.

Blackstone Dilworth JR$65,000.00
Wyatt Ranches of Texas LLC$60,000.00

Wyatt Ranches of Texas LLC

$60,000.00

Cash
$60,000.00
Paid by others
$0.00
Total
$60,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · Dec 12, 2024 to Jul 9, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Dec 12, 2024 to Jul 9, 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: 100968808, 101070449.

Money

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

×

PG Rental & Leasing Financial LLC

$70,000.00

Cash
$70,000.00
Paid by others
$0.00
Total
$70,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · Oct 30, 2024 to Sep 28, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Oct 30, 2024 to Sep 28, 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: 100968808, 101007425, 101036903, 101073060.

×

Wyatt Ranches of Texas LLC

$60,000.00

Cash
$60,000.00
Paid by others
$0.00
Total
$60,000.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · Dec 12, 2024 to Jul 9, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · Dec 12, 2024 to Jul 9, 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: 100968808, 101070449.

Votes2

House May 8, 2025

Yea
145
Nay
0
Present, not voting
2
Absent
3
Excused
0
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1774

HB 3896 was passed by (Record 1774): 145 Yeas, 0 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 145 (published)
  • Nay: 0 (published)
  • Present, not voting: 2 (published)
  • Absent: 3 (derived from named list)
  • Excused: 0 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 7, 2025

Yea
141
Nay
0
Present, not voting
2
Absent
4
Excused
3
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1659

CSHB 3896 was passed to engrossment by (Record 1659): 141 Yeas, 0 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 141 (published)
  • Nay: 0 (published)
  • Present, not voting: 2 (published)
  • Absent: 4 (derived from named list)
  • Excused: 3 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses2
For
2
Against
0
On
0
Names

For

  • Legacy Water Supply Corp.1 registration
  • SE Legacy1 registration
Sources

2 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version H · source

Sources

Fiscal note · version H · April 25, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

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

Sources

Texas House · Filed Mar 6, 2025

05/09/2025 S Referred to Business & Commerce

Texas Legislature Online · Introduced · House Committee Report · Engrossed

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

House committee · State Affairs · Committee vote 13 aye, 0 nay, 2 absent · Out of committee

Senate committee · Business & Commerce · Final status: Died in committee

Companion

SB 2327 by Zaffirini (identical)

Subjects

Business & Commerce--General

Corporations & Associations

Utilities--Electric

Utilities--Water & Sewer

Text

The text as introduced · 194 words

89R13089 JXC-F

By: Raymond
H.B. No. 3896

A BILL TO BE ENTITLED

AN ACT

relating to the generation of electric power for sale by a water

supply or sewer service corporation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 67, Water Code, is amended

by adding Section 67.0115 to read as follows:

Sec. 67.0115. ELECTRIC GENERATION. (a) A corporation

operating in ERCOT, as defined by Section 31.002, Utilities Code,

may register as a power generation company under Section 39.351,

Utilities Code.

(b) A corporation registered as a power generation company

may generate electric power for sale in the ERCOT power region to

provide revenue for the corporation. The revenue that accrues from

the sale of electric power may be used by the corporation only for:

(1) the corporation's costs of producing and selling

electric power, including administration, employees, equipment,

fuel, and maintenance; or

(2) a purpose described by Section 67.002.

(c) A corporation that generates electric power for sale

shall account for and use the revenue from those sales in a manner

that complies with Section 67.004.

SECTION 2. This Act takes effect September 1, 2025.