By: Schwertner S.R. No. 342       SENATE RESOLUTION          WHEREAS, Many Texas residents were hit with massive   electricity bills in the wake of Winter Storm Uri, and high costs   have rattled all sectors of the power market; and          WHEREAS, On February 12, 2021, as the storm bore down on   Texas, Governor Greg Abbott issued a disaster declaration for all   counties in Texas; three days later, the Electric Reliability   Council of Texas declared its highest state of emergency, an   Emergency Energy Alert Level 3, due to exceptionally high   electricity demand exceeding supply; and          WHEREAS, In response to the emergency level of consumer   demand, on February 15, the Public Utility Commission of Texas   issued an order directing ERCOT to start using the high   system-wide offer cap, or HCAP, that would raise the cap for   energy prices to $9,000 per megawatt hour, pursuant to 16 Texas   Administrative Code Section 25.505(g)(6)(B); this increase   reflected an approximately 10,000 percent spike in pricing from   the preceding three-month average; and          WHEREAS, PUC's administratively approved HCAP tripled   between 2012 and 2015 to its current rate of $9,000 per megawatt   hour; the highest price cap in the nation, this resulted in   jaw-dropping electric bills after the cap was reached and   remained in place for more than four days in February 2021; the   fallout threatens utilities and retail electric providers, which   collectively face billions of dollars in charges related to the   blackout; among those in bankruptcy is the state's largest and   oldest electric power cooperative, and electricity firms have   failed to pay some $3 billion in storm-related charges, a   shortfall that would be passed on to all Texas utilities and   customers; and          WHEREAS, Two new PUC members, commissioner Will McAdams   and chair Peter Lake, have been sworn in and will participate in   their first PUC hearing on May 6, 2021, enabling the commission   to take needed action to protect consumers and the financial   stability of electricity providers; now, therefore, be it          RESOLVED, That the Senate of the State of Texas, 87th   Legislature, hereby urge the Public Utility Commission of Texas   to significantly reduce the high system-wide offer cap and   evaluate changes to the market structure; and, be it further          RESOLVED, That the secretary of the senate forward   official copies of this Resolution to the members of the Public   Utility Commission.       Alvarado Hinojosa Nichols   Bettencourt Huffman Paxton   Birdwell Hughes Perry   Blanco Johnson Powell   Buckingham Kolkhorst Seliger   Campbell Lucio Springer   Creighton Menéndez Taylor   Gutierrez Miles West   Hall Nelson Whitmire   Hancock Zaffirini     Patrick, President of the Senate         _______________________________          President of the Senate                I hereby certify that the     above Resolution was adopted by     the Senate on May 3, 2021, by the   following vote:  Yeas 30, Nays 0.             _______________________________          Secretary of the Senate