An Act To Reduce Electricity Rates By Removing Limitations On The Ownership Of Generation By An Affiliate Of An Investor-Owned Transmission And Distribution Utility

132nd Legislature (2025-2026) Introduced by Billy Bob Faulkingham and 5 co-sponsors

Allows an investor-owned utility affiliate to own generation assets to lower electricity rates; the bill died and did not become law, with only minor regulatory costs.

Placed in Legislative Files (DEAD)

#electricutilities #rates #reduction

Overview

LD 1358 seeks to reduce electricity rates by removing existing limitations on generation ownership by an affiliate of an investor-owned transmission and distribution utility (IOU). The bill would permit an IOU affiliate to own generation assets, potentially enabling new ownership structures within the utility system. The stated goal is a reduction in electricity rates, though the bill does not guarantee rate cuts and relies on changes to ownership restrictions to achieve potential savings.

What the bill would change

Removes statutory limitations on the ownership of generation by an affiliate of an investor-owned T&D utility.

Allows an IOU’s affiliate to own and possibly operate generation capacity alongside the utility’s existing T&D operations.

Creates a framework in which generation assets could be acquired or developed by affiliated entities rather than exclusively by separate, non-affiliated generators.

Note: Specific statutory language and thresholds are not provided in the summary, but the core change is the authorization for affiliated generation ownership as a policy lever for potential rate relief.

Fiscal impact

Fiscal Note (approved 05/08/25)indicates minor cost increases to Other Special Revenue Funds.

Public Utilities Commission (PUC) costs associated with implementing or enforcing the bill are expected to be minor and absorbable within current budgets and resources.

Overall, the fiscal note suggests the regulatory burden would be limited, with no large or new funding needs anticipated.

Affected parties

Investor-owned utilities and their affiliates (generation ownership implications).

Electric ratepayers and customers who might benefit from potential rate reductions.

The Public Utilities Commission, which would oversee and enforce provisions related to generation ownership changes and any resulting market or reliability effects.

Procedural history and current status

Introduced: March 28, 2025.

Referred to: Committee on Energy, Utilities and Technology.

March–April 2025: Work sessions held; bill tabled at various points.

May 23, 2025: Reported Out as ONTP/OTP-AM (allowed to proceed with amendment or no recommendation).

May 28, 2025: Majority Ought Not to Pass Report accepted; roll call recorded (Yeas 81 – Nays 65).

May 28, 2025: Sent for concurrence; ORDERED SENT FORTHWITH.

May 29, 2025: Reports Read; Majority Ought Not to Pass Report accepted in concurrence; placed in Legislative Files (DEAD).

Fiscal note approved on 05/08/25.

Status: Placed in Legislative Files (DEAD) — the bill did not advance to enactment.

Key takeaways

The bill aimed to alter ownership structures within IOU-regulated systems to drive potential rate reductions.

It would allow an IOU affiliate to own generation assets, changing the current ownership framework.

The proposal did not progress to enactment and is described as dead, with a minor regulatory cost impact anticipated.

The committee and legislative votes reflect opposition to advancing the measure, despite considerations of potential rate effects.

Bill