Texas SB1963 allows electric utilities to recover costs from weather-related events by issuing system restoration bonds.

Texas SB1963 amends the Utilities Code to create a financing mechanism for electric utilities to recover system restoration costs from weather-related events or natural disasters. The bill allows utilities to apply for securitization and the issuance of system restoration bonds for costs of $50 million or more in any calendar year. The Public Utility Commission will determine the eligible costs and authorize the issuance of bonds. The act takes effect September 1, 2025.

Texas SB1963 allows electric utilities to recover costs from weather-related events by issuing system restoration bonds.

Texas SB1963 amends the Utilities Code to create a financing mechanism for electric utilities to recover system restoration costs from weather-related events or natural disasters. The bill allows utilities to apply for securitization and the issuance of system restoration bonds for costs of $50 million or more in any calendar year. The Public Utility Commission will determine the eligible costs and authorize the issuance of bonds. The act takes effect September 1, 2025.