Bill that would increase oversight of Texas’ largest energy users gets initial approval in Texas House

Carlos Nogueras Ramos | Source: The Texas Tribune | Posted 05/27/2025

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The proposal is meant to help the state better manage its electric supply during times of high demand. Critics say the oversight would discourage some companies from doing business in Texas.

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The Texas House has given initial approval to Senate Bill 6, which aims to enhance oversight of energy transactions between power generators and the state's largest electricity consumers. This legislation is designed to improve the management of electric supply during periods of high demand, particularly as Texas anticipates a significant increase in electricity needs driven by data centers and the oil and gas industry. The bill would empower the Electric Reliability Council of Texas (ERCOT) to oversee these transactions and potentially cut power during emergencies.

While the bill's author, State Sen. Phil King, argues that it will provide clarity and better predict energy demands, critics express concerns that the increased oversight could deter businesses from operating in Texas. The legislation also includes provisions for companies to disclose other projects in the state, which would help ERCOT in forecasting energy needs without leading to overbuilding. Amendments during the House debate have altered some provisions, including one that would allow excess electricity to be reinjected into the grid to help lower water bills for ratepayers.

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Source Link: https://www.texastribune.org/2025/05/25/texas-electric-grid-energy-oversight/

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Bill that would increase oversight of Texas’ largest energy users gets initial approval in Texas House

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