Texas House Bill HB3798

Texas 2009 - 81st Regular

Caption

Relating to the total cost of transmission to competitive renewable energy zones.

Impact

The enactment of HB 3798 is likely to influence state laws that regulate the cost and provision of transmission services, particularly within the framework of renewable energy. By setting a firm monetary limit on transmission capacity costs, the bill aims to encourage investment in renewable projects while simultaneously protecting state resources from potentially excessive expenditures in energy infrastructure. This could lead to an increase in competition among energy providers and a boost in renewable energy adoption throughout the state.

Summary

House Bill 3798 aims to address the total cost of transmission to competitive renewable energy zones in Texas. The bill amends Section 39.904 of the Utilities Code to establish a cap on the total cost of transmission capacity that can be approved by the commission for these zones, specifically setting the cap at five billion dollars. This legislative measure is intended to facilitate the growth and implementation of renewable energy projects by ensuring clearer financial expectations regarding infrastructure costs associated with these zones.

Contention

While supporters of the bill may view it as a necessary step toward streamlining energy transmission costs and promoting renewable energy initiatives, there could be points of contention regarding how such a cap might limit the ability of utility companies to expand and upgrade vital infrastructure. Critics may argue that a strict financial ceiling could lead to inadequacies in transmission capabilities, particularly in areas experiencing rapid growth or increased energy demand. Discussion surrounding the implications of the bill could focus on balancing cost control with the need for robust energy infrastructure to support a transitioning energy landscape.