United States: Anti-Renewables Legislative Proposals In Texas

There are several state legislative proposals in Texas that could have adverse impacts on the development and operation of renewable energy projects in Texas.

House Bill 4466 would require the Public Utilities Commission to assess the intermittent wind and solar projects with ERCOT's cost of ancillary services required to reliably operate the system.  Similarly, Senate Bill 1278 would mandate the Public Utilities Commission to require intermittent resources to purchase ancillary services and replacement power to manage net load variability.  The legislation would effectively shift costs of Winter Storm Uri to wind and solar (rather than creating a capacity market, dealing with the inability to deliver natural gas and therefore operate gas-fired projects, weatherization issues, etc.).

Visit us at mayerbrown.com

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe - Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.