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2025 · Regular session · Senate bill
SB231
SB231 sets equipment and leasing conditions for temporary emergency generators used by transmission and distribution utilities.
Official caption: Relating to temporary emergency electric energy facilities.
Official report lists Senate author(s): King. This does not identify sponsors or amendment drafters.
Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.
Bill highlights
Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.
- SB231 sets equipment and leasing conditions for temporary emergency generators used by transmission and distribution utilities.
- Equipment requirements: a covered facility must be mobile, capable of being moved from its staged location in less than 12 hours, capable of generating electricity within three hours after connection to a demand source, and limited to five megawatts of generation capacity.
- The new equipment changes apply to facilities leased on or after June 20, 2025.
- Leasing and oversight: competitive bidding is required, subject to a defined emergency exception.
- Emergency exception: leasing without bidding or prior approval is permitted when the utility lacks needed leased capacity, the amount leased does not significantly exceed the megawatts needed to restore service, and the lease term does not significantly exceed the restoration period.
What does it do?
SB231 sets equipment and leasing conditions for temporary emergency generators used by transmission and distribution utilities. These are utilities’ facilities for restoring service during qualifying major outages—not a general rule for every home generator. The law was signed and took immediate effect June 20, 2025. Official history; final law.
Equipment requirements: a covered facility must be mobile, capable of being moved from its staged location in less than 12 hours, capable of generating electricity within three hours after connection to a demand source, and limited to five megawatts of generation capacity. Five megawatts is the maximum per facility, not a limit on the utility’s entire fleet. These are equipment-capability standards, not a promise that every customer’s power will return within three hours of an outage.
The new equipment changes apply to facilities leased on or after June 20, 2025. Facilities leased before that date remain governed by the former law for those changes. The bill retains the requirements to operate isolated from the bulk power system and to stay out of the system operator’s pricing and reliability models. This is temporary local restoration, not permission to run these units as ordinary wholesale-market generation.
Leasing and oversight: competitive bidding is required, subject to a defined emergency exception. Ordinarily, the utility must either obtain Public Utility Commission authorization for its total leased capacity, the functions it will serve and capacity for each function, or include a lease provision allowing alteration based on a commission order or rule. The commission may limit an authorization’s duration.
Emergency exception: leasing without bidding or prior approval is permitted when the utility lacks needed leased capacity, the amount leased does not significantly exceed the megawatts needed to restore service, and the lease term does not significantly exceed the restoration period. The utility must justify the leased capacity in its first subsequent base-rate proceeding. The exception is not unlimited permission to lease any size fleet for any length of time. Section 1, Utilities Code 39.918(d), (f) and (f-1)–(f-4); Section 2 transition.
What changed along the way?
The introduced bill would have measured mobility by whether moving a unit required certain oversized or overweight transport permits. The Senate committee substitute instead used the less-than-12-hour movement standard. It changed proposed approval of each lease into authorization of fleet capacity and functions, added authority to time-limit approval, and added the emergency lease-duration condition and the prospective equipment transition. The Senate committee, Senate-passed, House committee and enrolled versions have the same operative provisions; the amendment index lists no floor amendments. All versions.
A proposed retroactive remedy was removed. The introduced version would have required a prompt rate review for certain utilities that failed to deploy leased facilities during a federally declared major disaster in 2024, with specified rate-of-return revision or customer refunds after adverse findings. That special proceeding is absent from the final law. Its removal does not repeal existing review of reasonable and necessary costs.
Some oversight already existed by rule. The PUC’s December 2024 adoption order, printed pages 100–119, already contained fleet authorization, emergency leasing, competitive bidding and cost-review rules in 16 TAC 25.56. The filing record identifies the January 8, 2025 implementation timing. SB231 puts revised requirements in statute, adds explicit equipment limits, and permits a non-emergency alternative to prior authorization through an alteration clause; it did not invent all generator oversight.
Later implementation is separate from the 2025 enactment. The PUC’s February 6, 2026 adoption order implements SB231 with detailed lease provisions, a public notice within 14 days for the non-emergency alteration-clause route, and a contested-case process to alter or terminate such a lease in the public interest. Its emergency route expressly operates without that alteration-clause route’s requirements, while retaining emergency conditions and cost review. The PUC’s February 18 implementation notice states that the amendments take effect March 1, 2026 and identifies Project 59389 for public notices. Disclosures for leases entered June 20, 2025 through February 28, 2026 were invited voluntarily; the later filing requirement should not be presented as retroactive.
For the full amendment record, open the official amendment index.
Official bill versions
Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.
Who could benefit—and who could bear the costs?
Mobile, smaller units may be easier to deploy where restoration is needed. Capacity planning, competitive procurement and limits on emergency leases may improve accountability. Those are intended benefits, not verified reductions in outage duration or electricity bills. The PUC’s 2026 order expressly declined to add a mandatory dispatch-and-connection deadline; the statutory three-hour clock concerns generation capability after connection, not delivery to every neighborhood.
Utilities and suppliers must meet equipment and lease requirements, and regulators must review authorizations and costs. Customers can still bear reasonable and necessary leasing and operating costs through regulated rates: SB231 does not repeal the existing cost-recovery framework. The 2026 rule retains reconciliation of temporary charges and refund or offset treatment for costs found unreasonable, unnecessary or imprudent. Neither prior authorization nor an alteration clause guarantees recovery of every dollar.
The May 8, 2025 fiscal note, for text unchanged in the final act, anticipates no significant state or local governmental fiscal impact and assumes costs can be absorbed using existing resources. It does not quantify ratepayer savings, supplier costs or reliability gains. The final act contains no new appropriation and no automatic refund to a particular customer.
Official sources
- Bill history and latest recorded action
- Bill versions, analyses and fiscal notes
- Action history and votes
- Amendment index
Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.