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HB 3402

Relating to risk mitigation planning and associated liability for providers of electric service.

89th Legislature (2025)

HB 3402 establishes risk mitigation requirements for Texas electric utilities while limiting their liability for compliance efforts, potentially reducing grid accountability while shifting infrastructure costs to ratepayers.

Referred to State Affairs
#citygovernment--utilities(i0068) #civilremedies&liabilities(i0065) #disasterpreparedness&relief(i0211) #emergencymanagement #texasdivisionof(vp6fw) #firesafety&prevention(s0273) #insurance--general(i0445) #insurance--property&casualty(i0442) #publicutilitycommission(v0023) #utilities--electric(i0831)
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Bill Summary · HB 3402

Legislative bill overview

HB 3402 establishes risk mitigation planning requirements for electric service providers in Texas and defines their associated liability protections. The bill creates a framework for utilities to develop and implement plans addressing operational risks while providing legal safeguards for good-faith compliance efforts. This appears designed to balance grid reliability improvements with limiting litigation exposure for utility companies undertaking risk reduction measures.

Why is this important

Texas's power grid has faced scrutiny following weather-related failures and outages. This bill directly impacts electricity reliability and cost—utilities may pass compliance expenses to ratepayers, while liability protections could reduce incentives for preventative safety measures or increase accident costs borne by consumers rather than companies. The bill's scope determines whether utilities adequately prepare for extreme weather and infrastructure failures versus receiving broad immunity from accountability.

Potential points of contention

  • Scope of liability protection: How broadly "good-faith" risk mitigation is defined could shield utilities from negligence claims or require meaningful accountability for preventable failures
  • Ratepayer costs: Whether consumers ultimately fund risk mitigation planning and whether companies can profit from compliance while avoiding liability
  • Regulatory oversight: The degree to which the Public Utilities Commission can mandate specific mitigation measures versus allowing utility discretion that prioritizes profits over grid resilience

Compiled from official sources — confirm details with the bill’s official record.

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