All Roll Calls
Yes: 1,024 • No: 237
TexasSB 689th Legislature Regular SessionSenate
Relating to the planning for, interconnection and operation of, and costs related to providing service for certain electrical loads and to the generation of electric power by a water supply or sewer service corporation.
Sponsored By: Phil King (Republican), Charles Schwertner (Republican)
Signed by Governor
City Government--UtilitiesUtilities--ElectricELECTRIC RELIABILITY COUNCIL OF TEXAS (ERCOT)PUBLIC UTILITY COMMISSION
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 1 benefits, 1 costs, 7 mixed.
Grid planning must include large users
The Texas Public Utility Commission must set standards for new or expanded large electricity connections in the ERCOT region. They cover sites exceeding 75 megawatts, unless the commission sets a lower threshold. The standards aim to support business growth, protect reliability, and avoid infrastructure costs from projects that never fully develop. The commission must also require ERCOT to include forecasted large loads in transmission planning and power-supply adequacy models and reports.
Texas reviews who pays grid costs
The Public Utility Commission must review how wholesale transmission costs are shared, including the current four-peak method. It must consider alternatives, including seasonal peaks, different daily intervals, and peak energy intervals. The review also examines which costs customers cannot avoid and whether each customer class pays the system costs it causes. The wholesale review must begin within 90 days after the law takes effect, with rule changes due December 31, 2026. The law sets no household bill increase or decrease.
Large power users face emergency curtailment
Covered large-load customers must report backup generators that cannot export to ERCOT's transmission grid and together can serve at least 50% of site demand. Utilities must send that information to ERCOT. After deploying available market services other than frequency-responsive services, ERCOT can require backup generation or reduced electricity use through the utility. This requires reasonable notice at an established threshold before or during an energy emergency alert; deployment counts as firm load shed for reliability price adjustments. For covered transmission-voltage loads connected after December 31, 2025, utilities must have emergency load-shedding plans and needed equipment installed before connection. Utilities must coordinate those plans with customers where feasible.
Large power applicants face disclosure rules
Covered large-load applicants must show site control through ownership, a lease, or another legal interest accepted by the commission. They must disclose similar Texas service requests whose approval would materially change, delay, or withdraw their current request. Applicants can withhold or anonymize sensitive details; utilities can share submitted information only with the commission or ERCOT under confidentiality protections. ERCOT gets access to utility-collected information to check compliance with transmission-planning standards. Customer-specific or competitively sensitive information obtained through that access is confidential and exempt from public disclosure.
Large power projects must secure funding
Large-load customers or developers must meet uniform financial commitment rules for transmission infrastructure needed to serve them. Accepted commitments can include per-megawatt security, construction contributions, advance equipment or service payments, or another commission-approved form. Per-megawatt security must be refunded in whole or part after covering outstanding debts when a refund trigger occurs. Triggers include meeting load-growth milestones and sustained-operation requirements, withdrawing some or all requested capacity, or having committed capacity reassigned. The commission sets uniform rules for when capacity backed by an outstanding commitment can be reassigned.
Large power users pay connection costs
Covered large-load customers must contribute toward their utility's connection costs. Cooperatives and city-owned utilities without customer choice must pass reasonable connection costs to those customers. Applicants must also pay at least $100,000 for an initial transmission screening study. Later requests for more capacity require another fee based on the new request. Any unused initial fee is credited toward procurement or connection-agreement financial obligations at the same site.
Large users earn emergency reduction payments
ERCOT must create a competitively purchased service paying customers with demand of at least 75 megawatts to reduce use. It serves anticipated emergencies, including specified periods during extreme weather. Participants receive at least 24 hours' notice and must stay curtailed through the energy emergency alert or until safely recalled. Customers cutting use in response to wholesale prices or participating in another reliability or ancillary service cannot join. Deployments count in reliability price adjustments, and the law sets no payment amount.
Large users face generator deal reviews
Beginning September 1, 2025, specified generators or utilities must notify ERCOT before covered net metering deals with new large-load customers. The review covers operating stand-alone generators registered with ERCOT as of September 1, 2025. It excludes resources registered with a co-located large-load customer when energized, or majority-owned by the customer's parent as of January 1, 2025. ERCOT must study system impacts within 120 days after receiving all required information. The commission then has 60 days to approve, deny, or set reasonable reliability conditions; no action means approval. A serving utility can object for reasonable cause before the final decision.
Water corporations gain limited power sales
Water supply and sewer service corporations can generate electricity for listed equipment used to produce, treat, move, and deliver water. Excess-power sales in ERCOT are limited to corporations operating solely as wholesale water suppliers or sewer services in counties below 350,000 people. They must mainly generate for authorized water uses and register as power generation companies. They must account for sales revenue under statutory rules and use it only for power-production and sales costs or authorized corporate purposes. Allowed power costs include administration, employees, equipment, fuel, and maintenance; the law sets no household rate savings.
Sponsors & Cosponsors
Sponsors
Phil King
Republican • Senate
Charles Schwertner
Republican • Senate
Cosponsors
Carol Alvarado
Democratic • Senate
César Blanco
Democratic • Senate
Donna Campbell
Republican • Senate
Brandon Creighton
Republican • Senate
Sarah Eckhardt
Democratic • Senate
Brent Hagenbuch
Republican • Senate
Bryan Hughes
Republican • Senate
Mayes Middleton
Republican • Senate
Roll Call Votes
Senate vote • 5/29/2025
Record vote
Yes: 31 • No: 0
House vote • 5/27/2025
Record vote
Yes: 103 • No: 25
House vote • 5/26/2025
Record vote
Yes: 117 • No: 24
House vote • 5/26/2025
Record vote
Yes: 108 • No: 19
House vote • 5/26/2025
Record vote
Yes: 136 • No: 3
House vote • 5/26/2025
Record vote
Yes: 100 • No: 40
House vote • 5/23/2025
Record vote
Yes: 80 • No: 59
House vote • 5/23/2025
Record vote
Yes: 117 • No: 21
House vote • 5/23/2025
Record vote
Yes: 95 • No: 40
House vote • 5/23/2025
Record vote
Yes: 125 • No: 6
Senate vote • 3/19/2025
Record vote
Yes: 0 • No: 0
Senate vote • 3/19/2025
Record vote
Yes: 0 • No: 0
House vote • Unknown
Committee vote: State Affairs
Yes: 12 • No: 0
Actions Timeline
Effective immediately
6/20/2025HouseSigned by the Governor
6/20/2025HouseSent to the Governor
6/1/2025HouseSigned in the House
6/1/2025HouseSigned in the Senate
5/31/2025SenateCo-author authorized
5/31/2025SenateReported enrolled
5/30/2025SenateSenate concurs in House amendment(s)-reported
5/29/2025HouseRecord vote
5/29/2025SenateSenate concurs in House amendment(s)
5/29/2025SenateRead
5/29/2025SenateHouse amendment(s) laid before the Senate
5/29/2025SenateHouse passage as amended reported
5/27/2025SenateStatement(s) of vote recorded in Journal
5/27/2025HouseRecord vote (RV#3643)
5/27/2025HousePassed
5/27/2025HouseRead 3rd time
5/27/2025HouseRecord vote (RV#3558)
5/26/2025HousePassed to 3rd reading as amended
5/26/2025HouseStatement of Leg. Intent Recorded in Journal
5/26/2025HouseStatement(s) of vote recorded in Journal
5/26/2025HouseRecord vote (RV#3557)
5/26/2025HouseAmended (3-Raymond and McLaughlin)
5/26/2025HouseRecord vote (RV#3556)
5/26/2025HouseAmendment adopted as amended (1-King)
5/26/2025House
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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