As of March 20, 2025, the Texas Senate passed a bill to create a new dispatchable power credits trading program that would require utilities, generation companies, and electric cooperatives in the Electric Reliability Council of Texas (ERCOT) territory to offset new renewables and battery capacity with an equal amount of new dispatchable capacity beginning as early as next year. [1] The bill defines dispatchable generation to exclude batteries and exempts companies that only operate battery storage systems. S.B.388 updates a 25-year-old section of the Texas Utilities Code to reflect the intent of the legislature that 50 percent of the megawatts of generating capacity installed in ERCOT power region after January 1, 2026, be sourced from dispatchable generation other than battery energy storage. It requires the Texas Public Utilities Commission to establish a program through which covered utilities and power generation companies would buy dispatchable power credits to cover any deficit in dispatchable generation capacity under the companies’ ownership or control. The bill says that the PUC must activate the credit trading program if it determines that dispatchable generation may provide less than 55 percent of all new generating capacity installed in the ERCOT power region after January 1, 2026.
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