What Could These Energy Ratemaking Bills Have Done?
Texas lawmakers considered making big energy ratemaking bills this year. But in the end, the proposals failed. Two bills aimed at making it easier for Texas power utilities to raise rates moved through the House but stalled in a Senate committee. Even though the bills didn’t pass, the debate matters. It shows what could be coming, especially during another hotter Texas summer. And these sorts of ideas could impact electricity prices in the future.
What HB 3157 and HB 2868 Would Have Done
House Bill 3157 would have let electric utilities raise rates before a full regulatory review. Utilities could have charged more using interim rates. If the final approved rate ended up lower, the company would have refunded the difference with interest.
House Bill 2868 would have allowed utilities more control over how they balance debt and equity when setting rates. This could have increased their allowed profit margin. Supporters said it would attract investors; however, critics said it would shift risk to customers.
Both bills passed the Texas House. But they stalled in the Senate Business & Commerce Committee when the Senate adjourned. That means neither became law. Even if Governor Abbott had wanted to sign them, he could not since the Senate did not approve these ratemaking bills.
Storm Damage Raises More Questions
While lawmakers debated these bills, some utilities faced major repair costs. After the May 2024 derecho storm, CenterPoint said it might spend $140 million fixing damage. It wants to use profits instead of raising rates for now.
This may seem helpful, but there’s a catch. Using profits now could lead to rate hikes later. With fewer profits left, utilities might push for faster increases in the future.
Why These Ratemaking Changes Still Matter
These energy ratemaking bills did not become law, but they show the direction some lawmakers want to go. And with a hotter Texas summer coming, power use will climb. While TDUs don’t sell electricity, they earn money delivering it. And their charges appear on every bill. So, even small changes in TDU rates can make a big impact when your usage soars.
How Texans Can Save
The proposed ratemaking changes may be dead for now but summer is just heating up. So, you still have ways to cut your Texas electric bills with smart habits that keep your costs under control. Use less power during the hottest hours. Set your thermostat a bit higher during the day. Seal gaps around doors and windows. And before the sun gets high, close the curtains to keep out the heat. Of course, the best way to save is to shop for a fixed-rate plan at http://www.texaselectricityratings.com.