Texas Legislative Update

Texas Senate Bills SB6 and SB7

A historical comparison of two bills addressing dispatchable electricity resources and grid reliability.

The Story at a Glance
1

Senate Bill 6 — Reliability Assets

2

Senate Bill 7 — Firming and Reserves

3

Markets

4

Outcomes

At the time of the original update, Texas Senate Bills SB6 and SB7 had passed Senate votes and moved to the Texas House for consideration.

The proposals represented different approaches to funding and compensating reliable dispatchable generation.

01

Senate Bill 6 — Reliability Assets

SB6 contemplated a Texas Energy Insurance Program with 10 GW of emergency dispatchable generation and a loan-guarantee structure for eligible projects.

Under the proposal, Reliability Assets would operate during declared ERCOT emergencies involving prospective load shedding.

02

Senate Bill 7 — Firming and Reserves

SB7 proposed a firming requirement and cost-allocation approach, along with a new Dispatchable Reliability Reserve Service (DRRS) ancillary-service product.

New ancillary services require design, qualification, and implementation work before they can enter an operating electricity market.

10 GWProposed Emergency Capacity
SB6Financing Mechanism
SB7Firming and Reserve Design

Historical bill descriptions; not a statement of enacted or current Texas law.

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