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