TX HB3896

Authorizes water supply or sewer service corporations to generate electric power for their own operations, including powering water well pumps, service pumps, and equipment for raw water production, treatment, and transportation, as well as infrastructure for potable drinking water treatment and delivery

Permits wholesale water suppliers or sewer service corporations in counties with populations under 350,000 to generate and sell excess electric power in the ERCOT power region, provided they primarily generate power for their own operational uses

Requires corporations selling excess power to register as a power generation company under Section 39.351 of the Utilities Code

Restricts revenue from electricity sales to covering power production and sales costs (administration, employees, equipment, fuel, maintenance) or purposes authorized under Section 67.002 of the Water Code

Takes effect September 1, 2025