TX SB714

Requires the Public Utility Commission and ERCOT to adopt rules, operating procedures, and protocols to eliminate or compensate for electricity pricing distortions in the ERCOT power region caused by the federal Production Tax Credit (26 U.S.C. Section 45)

Mandates that costs imposed on the grid by electricity sales eligible for federal tax credits—including costs of maintaining sufficient capacity to meet summer peak demand—must be paid by the parties that impose those costs

Directs the commission and ERCOT to eliminate existing rules that adjust electricity prices based on the probability of reserves falling below minimum contingency levels and the value of lost load (known as the Operating Reserve Demand Curve or ORDC)

Takes effect September 1, 2025