State Leaders Weigh In on Winter Storm Response

Published Mar 19, 2021 by Steven Will

Week In Review
This week in Austin was marked by a contentious back and forth among state leaders about the appropriate response to Winter Storm Uri. Meanwhile, in committees, broadband access and expansion received full support.

State Leaders Weigh in on Winter Storm Billing
In an unexpected series of moves early this week, the Senate passed Senate Bill 2142, which would force the Electric Reliability Council of Texas to reverse $4.2 billion in charges in response to what some consider artificially inflated wholesale power prices during the winter storm. House Speaker Dade Phelan declined to take up the bill in the House and stated that repricing would be an "extraordinary government intervention into the free market." Meanwhile, Governor Greg Abbott, sought and received the resignation of the last remaining commissioner on the Public Utility Commission. The week was capped off by Lieutenant Governor Dan Patrick calling on Governor Abbott to use his executive authority to reverse billions of dollars in charges for wholesale electricity.

Addressing the Digital Divide
The state's omnibus broadband bills were heard in both the House and Senate this week. On Wednesday, Senate Transportation Chairman Robert Nichols (R - Jacksonville) and author of Senate Bill 5, heard testimony on the Senate version of the broadband package. The bill was left pending in committee, but enjoyed overwhelming support from outside stakeholders during the hearing.

On Thursday, State Representative Trent Ashby (R - Lufkin) and author of House Bill 5, laid out the bill in the House State Affairs Committee. It also enjoyed overwhelming support from both committee members and outside stakeholders. Although the two bills are similar — establishing a statewide broadband plan, creating a broadband office, mapping requirements and rules for grant funding — the major difference between them is where the office would be housed. The Senate version calls for it to be housed in The University of Texas System, while the House version calls for it to be in the state comptroller's office. The Partnership supports both bills, but favors the House version, given its preference for the broadband office residing with the Comptroller. The bills are expected to be voted out of their respective committees in the coming weeks.

Electric Grid Hearings Continue
Hearings on the state's electric grid continued this week, with the House State Affairs Committee taking up six priority bills designed to address problems from Winter Storm Uri and the mass power outages. Two are administrative. House Bill 12 by Representative Richard Raymond (D-Laredo) establishes a statewide power outage public alert system. House Bill 13 by Representative Chris Paddie (R-Marshall) creates the Texas Energy Disaster Reliability Council to work among state agencies and ERCOT to prevent future outages and to coordinate responses among the state and industry, including better tracking of critical facilities and infrastructure. House Bill 16 by Representative Ana Hernandez (D-Houston) prohibits consumer wholesale electric plans, like the ones which resulted in some customers receiving massive electric bills.

House Bill 10 by State Affairs Committee Chairman Paddie overhauls the ERCOT governance, adding 5 additional members to the governing board appointed by the Governor and Legislature, one of which is required to represent consumer interests. The proposed reforms require all ERCOT board members reside in Texas and, for the first time, require members serve staggered two-year terms. The lack of consumer representation on the current ERCOT board was a consistent point made during witness testimony.

House Bill 11, also by Chairman Paddie, mandates winter weatherization of power plants and requires the Public Utility Commission work with power generators to implement and oversee those requirements. Winter Storm Uri brought lower temperatures for longer periods of time than existing weatherization standards.

The final bill, House Bill 17 by Representative Joe Deshotel (D-Beaumont), prohibits local regulations or restrictions based upon energy source.

Each bill received broad support from witnesses. Representatives said that changes to the bills will continue as they move through the legislative process.

Chapter 313 Hearings
House Bill 1556 by Representative Jim Murphy (R-Houston) reauthorizing and modernizing the Chapter 313 economic development program is expected to be heard in the House Ways and Means Committee in the coming weeks. Chapter 313 provides temporary tax abatements to businesses which would otherwise locate in other states. The program has generated billions of dollars in capital investments and tens of thousands of jobs. Chapter 313 has proven effective at bringing manufacturing and industrial facilities to the Houston region. House Bill 1556 is widely supported among businesses, chambers of commerce and economic development organizations. The Partnership is working closely with those allies to ensure the Chapter 313 program is reauthorized this legislative session.