After the Storm: PUC Adopts New Winter Weatherization Rules for Generators and TSPs

In the aftermath of Winter Storm Uri, the Texas Legislature passed Senate Bill 3, which among other things required the Public Utility Commission of Texas to adopt certain market-related rules. A key component of Senate Bill 3 required the Commission to adopt weatherization rules no later than Dec. 1. This new rule will require both power generation companies and transmission service providers to quickly assess a company’s ability to comply with the new rule or navigate the potentially treacherous waters of a good cause exception for noncompliance. 

On Oct. 21, the Commission formally adopted new winter weatherization requirements for power generation entities (generators) and transmission service providers (TSPs). The new rule (16 TAC § 25.55), which only addresses winter weather readiness requirements, represents the first of two phases in the Commission’s development of new weather emergency preparation measures intended to increase ERCOT grid reliability during severe weather events. At some undefined future date, the Commission will commence “phase two” of the program by promulgating a more comprehensive, year-round set of weatherization standards.