Energy (Utility Regulation)

HB 318 creates a new regulatory framework (Chapter 39A) in Texas law to allow utilities within the ERCOT power grid to connect to external power grids. It directly affects transmission and distribution utilities, municipally owned utilities, and electric cooperatives in Texas, granting them authority to build facilities for accessing power from outside ERCOT. Key provisions require the Public Utility Commission to approve interconnection applications (unless safety risks exist), coordinate with federal regulators, and identify potential transmission facilities for synchronous interconnection by September 2027. The bill establishes clear procedures for both synchronous and non-synchronous grid connections while maintaining ERCOT's operational independence under state law.