Texas Senate Bill SB2019

Texas 2021 - 87th Regular

Caption

Relating to the authority of the Public Utility Commission of Texas, with the assistance of the Railroad Commission of Texas, to take action to ensure that natural gas is available to supply power generation facilities.

Impact

This legislation has significant implications for state energy regulatory practices. By granting the Public Utility Commission enhanced powers during declared emergencies, the bill seeks to streamline and prioritize the flow of natural gas to critical power generation facilities. This response mechanism is aimed at preventing situations similar to previous emergencies, where power generation was hampered due to gas supply disruptions. Such proactive measures are intended to enhance the resilience of the state's energy infrastructure.

Summary

Senate Bill 2019 addresses the authority of the Public Utility Commission of Texas, in coordination with the Railroad Commission of Texas, to ensure the availability of natural gas for power generation facilities during widespread power outages or emergencies. The bill allows the Public Utility Commission to issue orders to manage the gas market by setting spot prices and ensuring that gas is accessible to power plants in the ERCOT power region, emphasizing the protection of in-state energy supply before any exports are considered.

Contention

Notably, the bill may provoke discussions around the balance of regulatory authority and market dynamics. Critics could argue that allowing the Public Utility Commission to dictate pricing and control gas availability might lead to market distortions or unintended consequences affecting supply chains and energy markets. Supporters, however, would likely defend it as a necessary measure to safeguard public welfare and ensure that energy resources are allocated efficiently during crises.