TX SB1856

Applies only to electric utilities operating outside of ERCOT in areas within the Southeastern Electric Reliability Council (SERC)

Requires the Public Utility Commission to establish an annually updated capacity cost recovery rider for eligible utilities that have not exceeded their authorized return on equity, allowing recovery of costs and return of revenues from participation in multi-state capacity auctions operated by regional transmission organizations

Rider revenue requirements must include calculated costs and revenues for the upcoming year beginning June 1, plus true-up amounts accounting for differences between actual and collected amounts from two years prior, including adjustments for mathematical errors and FERC-ordered refunds or surcharges

Applications must be filed by May 15 annually, with responses due within 15 days and commission orders required within 60 days; amounts recovered are subject to reconciliation in the next base rate proceeding to verify costs were reasonable and prudently incurred

The section expires September 1, 2035; utilities may file applications for costs incurred before September 1, 2026, even before the commission adopts implementing rules