Texas HB3374 amends electricity pricing rules to address market distortions caused by federal tax credits.

Texas HB3374 amends the Utilities Code to establish rules and operating procedures for electricity pricing that eliminate or compensate for market distortions caused by federal tax credits. The Texas Public Utility Commission and the ERCOT independent system operator must adopt these rules to ensure that costs imposed by the sale of electricity eligible for federal tax credits are paid by the parties that impose the costs. The bill also mandates the elimination of any existing rules that attempt to adjust electricity prices. This Act takes effect September 1, 2025.

Texas HB3374 amends electricity pricing rules to address market distortions caused by federal tax credits.

Texas HB3374 amends the Utilities Code to establish rules and operating procedures for electricity pricing that eliminate or compensate for market distortions caused by federal tax credits. The Texas Public Utility Commission and the ERCOT independent system operator must adopt these rules to ensure that costs imposed by the sale of electricity eligible for federal tax credits are paid by the parties that impose the costs. The bill also mandates the elimination of any existing rules that attempt to adjust electricity prices. This Act takes effect September 1, 2025.