Bill Text: TX SR342 | 2021-2022 | 87th Legislature | Enrolled

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Bill Title: Urging the Public Utility Commission of Texas to significantly reduce the high system-wide offer cap and evaluate changes to the market structure.

Spectrum: Bipartisan Bill

Status: (Passed) 2021-05-03 - Reported enrolled [SR342 Detail]

Download: Texas-2021-SR342-Enrolled.html

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By: Schwertner S.R. No. 342

SENATE RESOLUTION
WHEREAS, Many Texas residents were hit with massive
electricity bills in the wake of Winter Storm Uri, and high costs
have rattled all sectors of the power market; and
WHEREAS, On February 12, 2021, as the storm bore down on
Texas, Governor Greg Abbott issued a disaster declaration for all
counties in Texas; three days later, the Electric Reliability
Council of Texas declared its highest state of emergency, an
Emergency Energy Alert Level 3, due to exceptionally high
electricity demand exceeding supply; and
WHEREAS, In response to the emergency level of consumer
demand, on February 15, the Public Utility Commission of Texas
issued an order directing ERCOT to start using the high
system-wide offer cap, or HCAP, that would raise the cap for
energy prices to $9,000 per megawatt hour, pursuant to 16 Texas
Administrative Code Section 25.505(g)(6)(B); this increase
reflected an approximately 10,000 percent spike in pricing from
the preceding three-month average; and
WHEREAS, PUC's administratively approved HCAP tripled
between 2012 and 2015 to its current rate of $9,000 per megawatt
hour; the highest price cap in the nation, this resulted in
jaw-dropping electric bills after the cap was reached and
remained in place for more than four days in February 2021; the
fallout threatens utilities and retail electric providers, which
collectively face billions of dollars in charges related to the
blackout; among those in bankruptcy is the state's largest and
oldest electric power cooperative, and electricity firms have
failed to pay some $3 billion in storm-related charges, a
shortfall that would be passed on to all Texas utilities and
customers; and
WHEREAS, Two new PUC members, commissioner Will McAdams
and chair Peter Lake, have been sworn in and will participate in
their first PUC hearing on May 6, 2021, enabling the commission
to take needed action to protect consumers and the financial
stability of electricity providers; now, therefore, be it
RESOLVED, That the Senate of the State of Texas, 87th
Legislature, hereby urge the Public Utility Commission of Texas
to significantly reduce the high system-wide offer cap and
evaluate changes to the market structure; and, be it further
RESOLVED, That the secretary of the senate forward
official copies of this Resolution to the members of the Public
Utility Commission.
Alvarado Hinojosa Nichols
Bettencourt Huffman Paxton
Birdwell Hughes Perry
Blanco Johnson Powell
Buckingham Kolkhorst Seliger
Campbell Lucio Springer
Creighton Menéndez Taylor
Gutierrez Miles West
Hall Nelson Whitmire
Hancock Zaffirini
Patrick, President of the Senate
_______________________________
President of the Senate
I hereby certify that the
above Resolution was adopted by
the Senate on May 3, 2021, by the
following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate