Bills to reform the Electric Reliability Council of Texas (ERCOT) and weatherize the state’s power grid were signed into law on June 8 to address leadership and system failures during Winter Storm Uri.
Senate bills 2 and 3 will require the weatherization of power generation facilities, natural gas facilities, and transmission facilities to withstand extreme weather. The Texas Railroad Commission and ERCOT will be required to inspect these facilities, and failure to weatherize these facilities can result in a penalty of up to $1 million.In addition, these bills create a “Power Outage Alert” that will provide the public with an emergency alert whenever the power supply in the state may be inadequate to meet demand.
This legislation will establish the Texas Energy Reliability Council to improve coordination between state agencies and industry during extreme weather emergencies and extended power outages.
Reforms to ERCOT include having eight fully independent board members of the 11-member board. All board members must be residents of Texas.