Relating to a financing mechanism allowing electric utilities to obtain recovery of costs associated with a weather-related event or other natural disaster; granting authority to issue bonds.

SB 1963 allows Texas electric utilities to recover costs from major weather events or natural disasters by issuing special bonds. It applies to utilities with system restoration costs totaling $50 million or more in a single year. The bill creates a process where utilities must apply to the Public Utility Commission for approval within 150 days, authorizing bond issuance and new "system restoration charges" on customer bills. Actual costs are reconciled later, with bill adjustments based on final expenses. This law took effect September 1, 2025.