The governor signed two bills Tuesday that will require weatherization of critical energy facilities and overhaul the management and oversight structure of the organization that oversees the state electric grid.
“We thought it was going to be COVID, it was going to be a budget that didn’t have enough money in it, and all these things,” said Sen. Lois Kolkhorst. “Unbeknownst to us, in the middle of February we found ourselves in one of the greatest crises, I believe, that our state has ever seen.”
The two bills, SB 2 and 3, would revamp the organizational oversight over the state’s electric grid. One would change the ERCOT board from one of industry insiders to one that is independent of the state electric market, said Sen. Kelly Hancock.
Under Senate legislation, the board would be made up of eight unaffiliated members with executive level experience in finance, business, engineering and electric markets, approved by a commission appointed by state leadership. No member can hold a financial interest in any company that operates in the ERCOT market. It adds another layer of government oversight by requiring that any major proposals offered by that board be approved by the state’s top utility regulator, the Public Utility Commission.
SB 3, by Sen. Charles Schwertner, deals with issues that arose during the Valentine’s Day winter storm, by requiring that all critical electric, transmission and natural gas facilities be prepared to operate in extreme weather conditions.
It provides for inspection of these efforts, as well as fines of up to $1 million for companies that don’t comply. It creates a commission composed of state regulators and market participants dedicated to ensuring that the lights stay on during extreme weather.
It also creates a new emergency alert system to warn the public when severe weather looms that could cause widespread and extended power disruption and creates a new fee to pay for dispatchable electric generation capacity that can be accessed in an emergency.
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