Transmission Costs Get A Work Group And A 2026 Report

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89R13385 SCR-D

By: Hancock
S.B. No. 2546

A BILL TO BE ENTITLED

AN ACT

relating to establishing an advisory group to study potential means

to finance costs of development and maintenance of electric

transmission infrastructure.

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

SECTION 1. DEFINITION. In this Act, "work group" means the

work group established under Section 2 of this Act.

SECTION 2. WORK GROUP. The Transmission Cost Funding Work

Group is composed of the following members:

(1) one representative of the Public Utility

Commission of Texas, appointed by the chair of the commission;

(2) one representative of the independent

organization certified under Section 39.151, Utilities Code, for

the ERCOT power region, appointed by the chief executive officer of

the independent organization;

(3) two members of the Texas Senate, appointed by the

lieutenant governor;

(4) two members of the Texas House of Representatives,

appointed by the speaker of the house of representatives;

(5) one representative of the comptroller's office,

appointed by the comptroller; and

(6) the following members, appointed by the governor:

(A) one representative of the office of the

governor;

(B) one representative of a consumer advocacy

group;

(C) one representative of a renewable energy

organization; and

(D) one representative each of:

(i) the oil and gas industry;

(ii) an investor-owned electric utility;

(iii) a municipally owned electric utility;

and

(iv) an electric cooperative.

SECTION 3. STUDY. The work group shall conduct a study of

available means to finance the costs of development and maintenance

of electric transmission infrastructure that may help to ensure the

reliability, affordability, and long-term sustainability of the

Texas power grid. The study must be designed to:

(1) identify potential revenue sources, funding

mechanisms, and incentives that may be dedicated to those costs,

including:

(A) legislative appropriations;

(B) public-private partnerships;

(C) utility surcharges or fees;

(D) tax incentives;

(E) infrastructure investment programs; and

(F) reallocation of existing funds;

(2) assess the financial feasibility and long-term

sustainability of the revenue sources, funding mechanisms, and

incentives described by Subdivision (1) of this section;

(3) evaluate the potential effects of each of the

revenue sources, funding mechanisms, and incentives described by

Subdivision (1) of this section on consumers, utilities, and the

economy of this state; and

(4) compare and evaluate the revenue sources, funding

mechanisms, and incentives applied to those costs by other states.

SECTION 4. REPORT. Not later than December 1, 2026, the

work group shall submit to the governor, the lieutenant governor,

and the speaker of the house of representatives a written report

that includes:

(1) the findings of the study conducted under Section

3 of this Act; and

(2) any recommendations for legislative or other

action related to the funding of electric transmission projects.

SECTION 5. EXPIRATION. This Act expires September 1, 2027.

SECTION 6. EFFECTIVE DATE. This Act takes effect

immediately if it receives a vote of two-thirds of all the members

elected to each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

immediate effect, this Act takes effect September 1, 2025.