BILL ANALYSIS C.S.H.B. 1710 By: Landgraf State Affairs Committee Report (Substituted) BACKGROUND AND PURPOSE Managed by ERCOT, the independent Texas Interconnection has played a key role in keeping electricity prices low for consumers. Unlike other states, Texas operates its own grid without interstate connections, keeping it free from federal oversight. This independence allows Texas to prioritize deregulation, competition, and affordability. Having a single operator also improves grid reliability and gives the legislature the flexibility to implement energy policies, such as those that fueled the state's booming solar and wind industries, without the delays of federal approval or negotiations with other grid participants. Despite these advantages, there have been efforts to link the Texas Interconnection to out-of-state grids, including the proposed federal Connect the Grid Act, which aims to require grid integration, and the proposed Southern Spirit Transmission Line, which would cross multiple state lines and connect to Texas. While the latter is structured to avoid placing the Texas Interconnection under direct federal oversight, future connections could eventually open the door to federal regulation of the Texas grid. C.S.H.B. 1710 seeks to ensure that no future interconnections subject the Texas Interconnection to federal regulation by prohibiting the interconnection of a facility that would allow additional power to be imported or exported out of the ERCOT power grid unless the interconnection is approved by the Federal Energy Regulatory Commission. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 1710 amends the Utilities Code to further condition the exception from the prohibition against a person, including an electric utility or municipally owned utility, interconnecting a facility to the ERCOT transmission grid that enables additional power to be imported into or exported out of the ERCOT power grid, in addition to the person obtaining the requisite certificate from the Public Utility Commission of Texas (PUC), on the approval of such interconnection by the Federal Energy Regulatory Commission (FERC), but only under provisions of the Federal Power Act relating to interconnection authority, wheeling authority, or orders requiring interconnection or wheeling and not under provisions of the Federal Power Act relating to the disposition of property, mergers, the purchase of securities, and rates and charges. EFFECTIVE DATE September 1, 2025. COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 1710 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. Whereas the introduced prohibited the PUC from granting a certificate to build, own, or operate a facility that enables power to be imported into or exported out of the ERCOT power grid if the effect of the granted certificate would place facilities within the ERCOT power region under jurisdiction of FERC, the substitute instead conditions the exception from the prohibition against a person, including an electric utility or municipally owned utility, interconnecting a facility to the ERCOT transmission grid that enables additional power to be imported into or exported out of the ERCOT power grid, in addition to the person obtaining the requisite certificate from the PUC, on the approval of such interconnection by FERC, but only under limited provisions of the Federal Power Act.
BILL ANALYSIS
# BILL ANALYSIS
C.S.H.B. 1710
By: Landgraf
State Affairs
Committee Report (Substituted)
C.S.H.B. 1710
By: Landgraf
State Affairs
Committee Report (Substituted)
BACKGROUND AND PURPOSE Managed by ERCOT, the independent Texas Interconnection has played a key role in keeping electricity prices low for consumers. Unlike other states, Texas operates its own grid without interstate connections, keeping it free from federal oversight. This independence allows Texas to prioritize deregulation, competition, and affordability. Having a single operator also improves grid reliability and gives the legislature the flexibility to implement energy policies, such as those that fueled the state's booming solar and wind industries, without the delays of federal approval or negotiations with other grid participants. Despite these advantages, there have been efforts to link the Texas Interconnection to out-of-state grids, including the proposed federal Connect the Grid Act, which aims to require grid integration, and the proposed Southern Spirit Transmission Line, which would cross multiple state lines and connect to Texas. While the latter is structured to avoid placing the Texas Interconnection under direct federal oversight, future connections could eventually open the door to federal regulation of the Texas grid. C.S.H.B. 1710 seeks to ensure that no future interconnections subject the Texas Interconnection to federal regulation by prohibiting the interconnection of a facility that would allow additional power to be imported or exported out of the ERCOT power grid unless the interconnection is approved by the Federal Energy Regulatory Commission.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS C.S.H.B. 1710 amends the Utilities Code to further condition the exception from the prohibition against a person, including an electric utility or municipally owned utility, interconnecting a facility to the ERCOT transmission grid that enables additional power to be imported into or exported out of the ERCOT power grid, in addition to the person obtaining the requisite certificate from the Public Utility Commission of Texas (PUC), on the approval of such interconnection by the Federal Energy Regulatory Commission (FERC), but only under provisions of the Federal Power Act relating to interconnection authority, wheeling authority, or orders requiring interconnection or wheeling and not under provisions of the Federal Power Act relating to the disposition of property, mergers, the purchase of securities, and rates and charges.
EFFECTIVE DATE September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 1710 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. Whereas the introduced prohibited the PUC from granting a certificate to build, own, or operate a facility that enables power to be imported into or exported out of the ERCOT power grid if the effect of the granted certificate would place facilities within the ERCOT power region under jurisdiction of FERC, the substitute instead conditions the exception from the prohibition against a person, including an electric utility or municipally owned utility, interconnecting a facility to the ERCOT transmission grid that enables additional power to be imported into or exported out of the ERCOT power grid, in addition to the person obtaining the requisite certificate from the PUC, on the approval of such interconnection by FERC, but only under limited provisions of the Federal Power Act.
BACKGROUND AND PURPOSE
Managed by ERCOT, the independent Texas Interconnection has played a key role in keeping electricity prices low for consumers. Unlike other states, Texas operates its own grid without interstate connections, keeping it free from federal oversight. This independence allows Texas to prioritize deregulation, competition, and affordability. Having a single operator also improves grid reliability and gives the legislature the flexibility to implement energy policies, such as those that fueled the state's booming solar and wind industries, without the delays of federal approval or negotiations with other grid participants. Despite these advantages, there have been efforts to link the Texas Interconnection to out-of-state grids, including the proposed federal Connect the Grid Act, which aims to require grid integration, and the proposed Southern Spirit Transmission Line, which would cross multiple state lines and connect to Texas. While the latter is structured to avoid placing the Texas Interconnection under direct federal oversight, future connections could eventually open the door to federal regulation of the Texas grid.
C.S.H.B. 1710 seeks to ensure that no future interconnections subject the Texas Interconnection to federal regulation by prohibiting the interconnection of a facility that would allow additional power to be imported or exported out of the ERCOT power grid unless the interconnection is approved by the Federal Energy Regulatory Commission.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
C.S.H.B. 1710 amends the Utilities Code to further condition the exception from the prohibition against a person, including an electric utility or municipally owned utility, interconnecting a facility to the ERCOT transmission grid that enables additional power to be imported into or exported out of the ERCOT power grid, in addition to the person obtaining the requisite certificate from the Public Utility Commission of Texas (PUC), on the approval of such interconnection by the Federal Energy Regulatory Commission (FERC), but only under provisions of the Federal Power Act relating to interconnection authority, wheeling authority, or orders requiring interconnection or wheeling and not under provisions of the Federal Power Act relating to the disposition of property, mergers, the purchase of securities, and rates and charges.
EFFECTIVE DATE
September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE
While C.S.H.B. 1710 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.
Whereas the introduced prohibited the PUC from granting a certificate to build, own, or operate a facility that enables power to be imported into or exported out of the ERCOT power grid if the effect of the granted certificate would place facilities within the ERCOT power region under jurisdiction of FERC, the substitute instead conditions the exception from the prohibition against a person, including an electric utility or municipally owned utility, interconnecting a facility to the ERCOT transmission grid that enables additional power to be imported into or exported out of the ERCOT power grid, in addition to the person obtaining the requisite certificate from the PUC, on the approval of such interconnection by FERC, but only under limited provisions of the Federal Power Act.