Relating to a capacity cost recovery rider for certain electric utilities.
SB 1856 allows specific electric utilities operating outside ERCOT (in Southeastern Electric Reliability Council areas) to recover costs from multi-state capacity auctions through a special rider on customer bills. The rider must be annually updated and only covers costs not already recovered via base rates, including eligibility criteria for capacity-related expenses. Utilities must apply if they haven't exceeded their authorized return on equity, and the commission requires annual reconciliation to ensure costs are reasonable and prevent over-recovery. This law, effective immediately after the governor signed it on June 20, 2025, directly affects eligible out-of-ERCOT utilities participating in federal-regulated capacity markets.
Bill status
signed
all 5 stages cleared
Introduction
Mar 2025
Committee Review
May 2025
Senate Passage
May 2025
House Passage
May 2025
Signed into Law
Jun 2025
Introduced Mar 4, 2025
Signed Jun 20, 2025
Maddy AI version diff · 2 comparisons
What changed between versions
Engrossed
→
Enrolled
·
4 edits
·
Jun 20, 2025
MODERATE
The bill was converted from an 'Engrossed' version to an 'Enrolled' version, which is the final version ready for the Governor's signature. The substantive legislative text remains largely the same, though some formatting was cleaned up and a few procedural details were added to the application timeline.
Scope change
No substantive change to the bill's scope or applicability; the text describes the same capacity cost recovery rider for electric utilities operating outside ERCOT.
TECHNICAL
Removed placeholder text and formatting artifacts from the original draft to produce a clean, final version of the bill.
Added certification language at the end of the bill documenting the final passage votes in the Senate and House.
TIMELINE
Added specific language to Section 1(k)(2) clarifying that the application deadline may be extended if the regional transmission organization publishes capacity auction results after April 20th.
ENFORCEMENT
Added new Sections 2 and 3 to Section 36.216, establishing a 60-day commission review timeline for initial applications and setting the bill's expiration date as September 1, 2035.
Floor votes · House May 23, 2025
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
49
Key actions
16
Committee
11
Jun 20, 2025
Signed into law
Signed by the Governor
executive
May 27, 2025
Lower · Passed
Signed in the House
lower
May 26, 2025
Upper · Passed
Signed in the Senate
upper
May 25, 2025
Upper · Passed
House passage reported
upper
May 24, 2025
Lower · Passed
Passed
lower
May 23, 2025
House · Passed
House Vote: pass (129-3-9)
house
May 20, 2025
Lower · Passed
Committee report sent to Calendars
lower
May 19, 2025
Lower · Passed
Committee report distributed
lower
May 15, 2025
Lower · Passed
Reported favorably w/o amendment(s)
lower
May 12, 2025
Committee
Referred to State Affairs
lower
May 12, 2025
Introduced
Read first time
lower
May 9, 2025
Introduced
Received from the Senate
lower
May 9, 2025
Upper · Passed
Passed
upper
Apr 28, 2025
Upper · Passed
Committee report printed and distributed
upper
Apr 28, 2025
Upper · Passed
Reported favorably as substituted
upper
Apr 24, 2025
Upper · Passed
Vote reconsidered in committee
upper
Apr 24, 2025
Upper · Passed
Vote taken in committee
upper
Mar 25, 2025
Upper · Passed
Left pending in committee
upper
Mar 25, 2025
Upper · Passed
Testimony taken in committee
upper
Mar 17, 2025
Committee
Referred to Business & Commerce
upper
Mar 17, 2025
Introduced
Read first time
upper
2 primary · 0 co-sponsors
Sponsors
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