Texas House Bill HB3470

Texas 2021 - 87th Regular

Caption

Relating to electricity service in this state; imposing administrative penalties.

Impact

The amendments seek to enhance the enforcement mechanisms surrounding electricity service reliability, potentially improving overall market stability and consumer protection. The introduction of a classification system for violations based on various factors, such as severity and economic harm, aims to provide a structured approach to penalization. Additionally, the bill ensures that electric cooperatives and municipally owned utilities are included under these regulations, leveling the playing field for all electricity providers in Texas. Notably, if a party pays a federal penalty for a reliability standard violation similar to a state violation, they are exempt from state penalties, promoting cooperation with federal regulations.

Summary

House Bill 3470 relates to the regulation of electricity service in Texas, specifically addressing the imposition of administrative penalties for violations of established reliability standards. The bill amends existing provisions in the Utilities Code and introduces stricter penalties for violations related to both general and reliability standards. Violations that occur on or after the effective date of the bill may incur fines up to $100,000, significantly higher than the previous cap of $25,000. Furthermore, each day a violation continues counts as a separate infraction, intensifying the potential financial impact on offending parties.

Contention

Opposition to HB 3470 may arise from stakeholders concerned about the increased financial burden that these heightened penalties could impose, particularly on smaller energy providers and cooperatives that may struggle to meet stringent reliability standards. Critics argue that such penalties should be balanced with support mechanisms to assist in compliance. Furthermore, there may be concerns over the administrative capabilities to enforce these penalties uniformly across Texas's diverse energy sector, especially in less densely populated regions where resources might be limited.