Texas’ growing power grid is facing an uncertain future as several bills aimed at regulating the energy market advance through the state legislature. The Electric Reliability Council of Texas (ERCOT) has warned that any significant changes to the state’s energy policy could undermine its ability to meet forecasted demand.
State lawmakers are considering Senate Bills 388 and 819, which would alter the free trade and marginally regulated business environment that allows power generators and retailers to operate as they see fit. One bill, sponsored by Sen. Phil King, R-Weatherford, aims to bolster reliable energy generation by requiring half of the grid’s supply as of 2026 to be dispatchable, or natural gas, nuclear, and coal-fired energy.
Critics argue that these bills will interfere with a market that runs best when left alone, while proponents claim they are necessary to ensure the state can meet growing demand for electricity. The issue has sparked debate among lawmakers, experts, and industry stakeholders, with some arguing that renewable energy development needs to be balanced with dispatchable energy sources.
The Texas Tribune spoke to several experts and lawmakers, who expressed concerns about the potential impact of these bills on the grid’s ability to meet demand. Doug Lewin, author of the Texas Energy and Power newsletter, warned that tying growth to natural gas infrastructure is “insane,” while Peter Hartley, an economist at Rice University, argued that subsidies for renewable energy have forced lawmakers to make faster inroads for natural gas.
The bills still need approval from the House and must not be vetoed by Gov. Greg Abbott before becoming law. If passed, they could significantly alter the state’s energy landscape and impact its ability to meet forecasted demand.
Source: https://www.texastribune.org/2025/04/16/texas-ercot-energy-demand-legislature