SB 714
Sparks Bill On Federal Tax Credits Also Scraps Scarcity Pricing
Died in committee
Verdict: Smells
Why it's charged
Caption mismatch
THE TEXT
…“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 is about offsetting distortion from federal tax credits. This clause also wipes out a separate scarcity-pricing mechanism that has nothing to do with tax credits, and the caption does not mention it.
Caption mismatchInitial review · graded Oct 20, 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: tax credit distortion. Bill: also “eliminate any rules” that price in scarce reserves.
The bill orders the Public Utility Commission and ERCOT to write rules that cancel out or offset the effect on Texas power prices of a federal tax credit for producing electricity. Generators selling power that qualifies for that federal credit must pay the costs their sales put on the grid, including the cost of keeping enough capacity for summer peak demand. The bill also orders the regulators to scrap any pricing rule that raises power prices to reflect how scarce reserves are and the value of lost load.
Labels
Labels: NEVER GOT A HEARING. Filed Jan 6, 2025 and referred to the Senate Business & Commerce committee. No public hearing. The bill died.
Receipt
The receipt
89R-SB714 · 2025-01-06
SOLD BY
+ 3 coauthors
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: tax credit distortion. Bill: also “eliminate any rules” that price in scarce reserves.
The bill orders the Public Utility Commission and ERCOT to write rules that cancel out or offset the effect on Texas power prices of a federal tax credit for producing electricity. Generators selling power that qualifies for that federal credit must pay the costs their sales put on the grid, including the cost of keeping enough capacity for summer peak demand. The bill also orders the regulators to scrap any pricing rule that raises power prices to reflect how scarce reserves are and the value of lost load.
CHARGES
[x] CAPTION MISMATCHanalysis confidence 50%
THE TEXT
…“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 is about offsetting distortion from federal tax credits. This clause also wipes out a separate scarcity-pricing mechanism that has nothing to do with tax credits, and the caption does not mention it.
TOTAL
No fiscal note in the loaded record.
HISTORY
- Received by the Secretary of the Senate
- Filed
- Read first time
- Referred to Business & Commerce
- Co-author authorized
- Co-author authorized
- Co-author authorized
FILED UNDER
DATA CENTERS, WATER AND THE GRID
THE TEXT
…“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”
Bill text, introduced version (I)
The bill shifts grid reliability costs onto generators whose power qualifies for the federal production tax credit and rewrites how ERCOT prices scarcity.
THANK YOU FOR CHECKING THE RECEIPT
CAMPAIGN PAID FOR BY
CAMPAIGN PAID FOR BY
Donors
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 25, 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$60,000.00
Texans for Lawsuit Reform PAC
$60,000.00
- Cash
- $60,000.00
- Paid by others
- $0.00
- Total
- $60,000.00
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.
TeamSources
Derived itemized flow · Oct 15, 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.
Report IDs: 101012623, 101029380, 101072732.
Missing data does not establish zero giving. Display amounts are rounded.
Texans for Lawsuit Reform PAC
$60,000.00
- Cash
- $60,000.00
- Paid by others
- $0.00
- Total
- $60,000.00
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.
TeamSources
Derived itemized flow · Oct 15, 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.
Report IDs: 101012623, 101029380, 101072732.
Votes
No floor vote loaded for this bill.
Fiscal
No fiscal note in the loaded record.
How this was graded
Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.
Sources
Texas Senate · Filed Jan 6, 2025
02/07/2025 S Referred to Business & Commerce
Texas Legislature Online · Introduced
Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.
Senate committee · Business & Commerce · Final status: Died in committee
Companion
HB 3374 by Patterson (identical)
Subjects
Utilities--Electric
ELECTRIC RELIABILITY COUNCIL OF TEXAS (ERCOT)
PUBLIC UTILITY COMMISSION
Text
The text as introduced · 261 words
89R4479 CXP-F By: Sparks S.B. No. 714 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.