Texas’s energy future is under threat from misguided legislation aimed at bolstering grid reliability. Bills like the Committee Substitute for House Bill 5 and Senate Bill 1731 represent a dangerous shift away from market-driven solutions and towards artificial mandates that will ultimately harm Texas’s energy sector and economy. The recent challenges faced during Winter Storm Uri have been exploited to justify policies that prioritize certain technologies, particularly natural gas, at the expense of innovation and competition.

The core problem isn’t a lack of reliability; it’s the flawed approach to *ensuring* that reliability. These bills attempt to guarantee “resource adequacy” by dictating the types of power generation and guaranteeing payments to specific plants. This intervention stifles the very market forces that are already responding to the need for a stable and resilient grid. Private investment, driven by consumer demand and long-term contracts, is proving to be a far more effective solution than legislative mandates.

By picking “winners” and “losers” in the energy landscape, this legislation actively discourages investment in promising alternatives like solar, wind, and energy storage. The grid requires flexibility and adaptability, and a rigid regulatory framework will only create vulnerabilities. Furthermore, the artificial constraints imposed by these bills are likely to lead to higher energy costs for Texas consumers. The inherent strength of the Texas energy market lies in its responsiveness and dynamism – qualities that these bills actively undermine. Unlike approaches taken in other states, this legislation risks creating an inflexible and costly energy system. Instead of learning from the challenges of Winter Storm Uri, these bills double down on a flawed model that prioritizes outdated technologies over the innovative solutions already emerging from the private sector.