Texas Senate Bill SB1826

Texas 2015 - 84th Regular

Caption

Relating to the regulation of the amount of installed electric generation capacity.

Impact

If enacted, SB1826 would significantly impact state law related to the regulation of electric utilities in Texas. Specifically, it amends existing statutory provisions under the Utilities Code that previously allowed regulatory authorities to mandate the amount of installed electrical generation capacity. By removing these mandates, the bill aims to create a more favorable environment for investment in the energy sector and encourage the development of a competitive market. Critics, however, may voice concerns regarding potential consequences on energy reliability and security resulting from this deregulation.

Summary

Senate Bill 1826, titled 'Relating to the regulation of the amount of installed electric generation capacity,' seeks to eliminate regulation over the quantity of electric generation capacity that can be installed by energy producers. The bill asserts that the market forces—namely investors, generators, and consumer choices—should dictate the amount of installed generation capacity. This change is designed to foster competition in the electricity market, allowing for more flexibility and adaptive responses to consumer demand and energy production capabilities.

Contention

The bill has the potential to incite debate among stakeholders, particularly between advocates for deregulation—who argue that it will lower costs and promote efficiency—and those concerned about ensuring adequate electric service capacity amid growing demand. The contention centers around the belief that allowing unrestricted market forces to determine capacity could lead to scenarios where insufficient capacity may result in blackouts or reliability issues, especially during peak demand or emergencies. This aspect of SB1826 could be contentious in legislative discussions.