TX HB2868

Applies only to electric utilities operating solely within the ERCOT (Electric Reliability Council of Texas) grid

Establishes a presumption that a utility's proposed debt-to-equity capitalization ratio is reasonable when setting rates, if calculated using the utility's actual proportion from its books and records for the most recent financial quarter before the rate proceeding

Requires the calculation methodology to be consistent with earnings monitoring reports

If the regulatory authority finds the utility's proposed capitalization ratio unreasonable, it must use an equity capitalization ratio equal to the national average for electric utility operating companies

Takes effect immediately with a two-thirds vote of both legislative chambers, otherwise September 1, 2025; applies only to rate proceedings without a final order before the effective date