Texas Senate Bill SB 231

Texas 2025 - 89th Regular

• Filed: 11/12/24
• Out of Senate Committee: 4/9/25
• Voted on by Senate: 4/16/25
• Out of House Committee: 5/15/25
• Voted on by House: 5/21/25
• Governor Action: 6/20/25

Caption

Relating to temporary emergency electric energy facilities.

Summary

SB 231 amends the Texas Utilities Code provisions governing temporary emergency electric energy facilities leased by transmission and distribution utilities. The bill tightens the definition of qualifying facilities by requiring them to be mobile, capable of being moved from their staged location within 12 hours, able to begin generating electricity within three hours after connection to a demand source, isolated from the bulk power system, and limited to a maximum generation capacity of five megawatts. It also clarifies that these facilities may not be used in independent system operator locational marginal pricing, pricing, or reliability models. The bill changes how utilities may lease these emergency resources. It generally requires competitive bidding for leases, but adds a new framework under which the Public Utility Commission of Texas must first authorize the total capacity and uses for which a utility may lease such facilities, unless the lease can be adjusted later to conform to commission order or rule. It also creates a narrow exception allowing a utility to lease emergency generation without competitive bidding or prior commission approval when the utility lacks capacity needed to restore service during a significant outage, provided the amount and term of the lease do not significantly exceed restoration needs. Utilities using that exception must later document the need in their first base rate proceeding after the lease begins.

Impact

SB 231 modifies Section 39.918 of the Utilities Code and affects transmission and distribution utilities, the Public Utility Commission of Texas, and vendors or lessors of temporary emergency generation equipment. It narrows the types of facilities that qualify for emergency leasing, adds commission oversight over lease capacity and purpose, and preserves a limited emergency procurement path for outage restoration. The bill applies prospectively to leases entered into on or after its effective date, while existing leases remain governed by prior law.

Sentiment

The bill appears to have been broadly supported and noncontroversial. It passed the Senate 31-0 and the House 145-0, with two members present not voting, and there is no committee transcript indicating opposition or significant debate. The unanimous votes suggest general agreement on the need to clarify and regulate temporary emergency electric energy leasing while preserving utility flexibility during major outages.

Contention

The main policy tension in SB 231 is between oversight and speed. On one side, the bill increases commission control, competitive bidding, and limits on facility size and functionality to prevent overuse or inappropriate cost recovery. On the other, it preserves an emergency exception for utilities that need quick access to generation to restore service after a significant power outage, reflecting concern that prior approval or bidding could delay response. Any contention would likely center on how much discretion utilities should have in emergencies versus how much prior approval and documentation the commission should require.