Texas Bill to Connect ERCOT Power Grid to Outside Networks

HB 318 would allow Texas power companies and electric cooperatives to build new connections between the ERCOT power grid and power grids outside Texas. Right now, ERCOT operates mostly on its own without connecting to other states' power networks. This bill would change that.

Under HB 318, utilities could construct facilities to access power from outside ERCOT and buy wholesale power from other regions. The Texas Public Utility Commission would need to approve these projects. The commission could also ask for federal approval when needed. The bill requires the independent organization that oversees ERCOT to approve the interconnection unless the link poses a significant safety risk.

The bill covers both synchronous and non-synchronous connections. A synchronous connection means the power systems operate at the same speed. Non-synchronous uses special equipment to convert the power. By September 1, 2027, the commission must identify which transmission facilities in ERCOT could be synchronously connected to facilities outside ERCOT to allow federal regulation of transmission service and wholesale power sales in ERCOT.

Utilities would need to get a certificate from the commission before they can interconnect a facility to import or export power. The commission must approve the application unless it poses a significant safety risk. The utility must apply for the certificate at least 180 days before seeking any order from the Federal Energy Regulatory Commission.

This law could expand Texas power options and create new pathways for energy trade across state lines. Representative Ron Reynolds introduced this bill in the Texas Legislature.

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