89R26204 JXC-F
By: Raymond H.B. No. 3896
Substitute the following for H.B. No. 3896:
By: King C.S.H.B. No. 3896
A BILL TO BE ENTITLED
AN ACT
relating to the generation of electric power by a water supply or
sewer service corporation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 67, Water Code, is amended
by adding Section 67.0115 to read as follows:
Sec. 67.0115. ELECTRIC GENERATION. (a) A corporation may
generate electric power for use in the corporation's operations,
limited to:
(1) powering water well pumps, service pumps, and
other equipment for the production, treatment, and transportation
of raw water; and
(2) powering infrastructure for the treatment and
delivery of potable drinking water.
(b) For the purposes of Subsection (a), a corporation
operating solely as a wholesale water supplier or sewer service in a
county with a population of less than 350,000 may generate excess
electric power in conjunction with the uses described in Subsection
(a) for sale in the ERCOT power region to provide revenue for the
corporation only if the corporation:
(1) primarily generates electric power solely for the
uses described in Subsection (a); and
(2) registers as a power generation company under
Section 39.351, Utilities Code.
(c) A corporation that generates electric power for sale
under Subsection (b) shall account for and use the revenue from
those sales in a manner that complies with Section 67.004. The
revenue that accrues from those sales of electric power may be used
by the corporation only for:
(1) the corporation's costs of producing and selling
electric power, including administration, employees, equipment,
fuel, and maintenance; or
(2) a purpose described by Section 67.002.
SECTION 2. This Act takes effect September 1, 2025.