Will New Laws Make Your Electricity Bill Go Up?
The Texas Legislature debated a slew of bills during this year’s session. And a few dozen of them dealt with electric reliability. But each session, only 10 to 15 percent of Texas bills actually become law. So some bills are dead while others are now law or soon will be. But which new laws will make your electricity bill go up?
When lawmakers enact changes to how Texans get their power, there are bound to be costs. And even if those costs fall squarely on power generators and utility companies, you can bet those costs will flow to customers. So, let’s review some of this session’s bills, where they ended up, and how they might impact your electric rate.
State Money For Natural Gas Plants – Did Not Pass
Despite broad support in the upper chamber, Senate Bill 6 couldn’t get the time of day in the House. This bill would have used state funds to build 10MW of new natural gas plants. The idea was for these plants to serve as insurance against a grid emergency. The concept differs from the Performance Credit Mechanism (PCM) that the Public Utility Commission (PUC) touted before the session which could have been why SB 6 failed. In the end, SB 6 won’t cost taxpayers or customers anything because it failed to pass in the House.
Limiting PCM Costs – Signed Into Law
Senate Bill 7 failed after conferees from both chambers could not agree on the PCM. However, the relevant text was added to House Bill 1500 which passed. This bill limits the cost of the PCM to $1B with some exceptions. The idea behind this bill is to allow the PCM but make sure it doesn’t go off the rails financially. The PCM will likely make your electricity bill go up, but the new law tries to curb those costs.
Utility Rates Making Your Electricity Bill Go Up – Signed Into Law
Senate Bill 1015 allows electric utilities – like CenterPoint and Oncor – to seek a distribution rate increase twice a year. PUC approves these rate hikes. However, the bill cuts the time the PUC has to review in half – from 120 days to 60 days. Customers could see their electricity bill go up more quickly than in the past. You can’t do anything about your utility rate, but you have choices in your retail power prices. The bill became effective upon Abbott’s signing on June 18.
Hurdles For Green Energy – Signed Into Law
The befuddling fight between Abbott and green energy is on full display in signing House Bill 1500. This law creates hurdles for permitting and adds cost to connecting wind and solar farms to transmission lines. Critics say it will limit the state’s booming renewable power growth at the expense of consumers. By how much? Time will tell.
Loan Program For Gas and Coal – Pending Constitutional Amendment
Senate Bill 2627 starts a low-interest loan program for companies that pledge to build or upgrade natural gas or coal plants. This aligns with calls from state leaders to add more dispatchable power. Gas and coal plants can turn on in a matter of hours while solar and wind farms rely on Mother Nature. The bill is signed but requires voters to approve a constitutional amendment before taking effect.
Will Your Electricity Bill Go Up?
Now that the legal landscape is set for the next two years, it’s time to lock in the best power rate for your home. So, shop great plans at http://www.texaselectricityratings.com to find the one that best meets your needs.
