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SENATE RESOLUTION
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WHEREAS, Many Texas residents were hit with massive |
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electricity bills in the wake of Winter Storm Uri, and high costs |
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have rattled all sectors of the power market; and |
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WHEREAS, On February 12, 2021, as the storm bore down on |
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Texas, Governor Greg Abbott issued a disaster declaration for all |
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counties in Texas; three days later, the Electric Reliability |
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Council of Texas declared its highest state of emergency, an |
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Emergency Energy Alert Level 3, due to exceptionally high |
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electricity demand exceeding supply; and |
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WHEREAS, In response to the emergency level of consumer |
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demand, on February 15, the Public Utility Commission of Texas |
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issued an order directing ERCOT to start using the high |
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system-wide offer cap, or HCAP, that would raise the cap for |
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energy prices to $9,000 per megawatt hour, pursuant to 16 Texas |
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Administrative Code Section 25.505(g)(6)(B); this increase |
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reflected an approximately 10,000 percent spike in pricing from |
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the preceding three-month average; and |
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WHEREAS, PUC's administratively approved HCAP tripled |
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between 2012 and 2015 to its current rate of $9,000 per megawatt |
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hour; the highest price cap in the nation, this resulted in |
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jaw-dropping electric bills after the cap was reached and |
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remained in place for more than four days in February 2021; the |
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fallout threatens utilities and retail electric providers, which |
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collectively face billions of dollars in charges related to the |
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blackout; among those in bankruptcy is the state's largest and |
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oldest electric power cooperative, and electricity firms have |
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failed to pay some $3 billion in storm-related charges, a |
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shortfall that would be passed on to all Texas utilities and |
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customers; and |
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WHEREAS, Two new PUC members, commissioner Will McAdams |
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and chair Peter Lake, have been sworn in and will participate in |
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their first PUC hearing on May 6, 2021, enabling the commission |
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to take needed action to protect consumers and the financial |
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stability of electricity providers; now, therefore, be it |
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RESOLVED, That the Senate of the State of Texas, 87th |
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Legislature, hereby urge the Public Utility Commission of Texas |
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to significantly reduce the high system-wide offer cap and |
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evaluate changes to the market structure; and, be it further |
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RESOLVED, That the secretary of the senate forward |
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official copies of this Resolution to the members of the Public |
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Utility Commission. |
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| Alvarado |
Hinojosa |
Nichols |
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| Bettencourt |
Huffman |
Paxton |
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| Buckingham |
Kolkhorst |
Seliger |
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| Creighton |
Menéndez |
Taylor |
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Patrick, President of the Senate |
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_______________________________ |
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President of the Senate |
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I hereby certify that the |
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above Resolution was adopted by |
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the Senate on May 3, 2021, by the |
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following vote: Yeas 30, Nays 0. |
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_______________________________ |
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Secretary of the Senate |