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SB 6

Relating to the planning for, interconnection and operation of, and costs related to providing service for certain electrical loads and to the generation of electric power by a water supply or sewer service corporation.

89th Legislature (2025) Introduced by Carol Alvarado and 8 co-sponsors

Texas law now permits water and sewer utilities to generate and operate their own electrical power systems to reduce operational costs while establishing interconnection and planning frameworks.

Effective immediately
#citygovernment--utilities(i0068) #electricreliabilitycounciloftexas(ercot)(v0167) #publicutilitycommission(v0023) #utilities--electric(i0831)
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Bill Summary · SB 6

Legislative bill overview

SB 6 allows water supply and sewer service corporations in Texas to generate, plan for, interconnect, and operate electric power systems to serve their own operational needs. The bill establishes a regulatory framework for how these utilities can manage electricity costs and grid connections while maintaining their primary water/wastewater missions.

Why is this important

Water and sewer systems are energy-intensive operations, and enabling them to generate their own power could reduce operational costs and improve resilience during grid disruptions. This reflects a growing trend toward distributed energy generation and gives municipal utilities more control over energy expenses, which ultimately affects consumer water bills.

Potential points of contention

  • Regulatory oversight gaps: The bill may create ambiguity about which agency (PUCT, TCEQ, or local authorities) has primary jurisdiction over these utility-owned power systems, potentially leading to conflicting requirements or inadequate safety standards.
  • Cost allocation concerns: Without clear guidelines, ratepayers may end up subsidizing power generation infrastructure through water bills, while benefits accrue primarily to the utility; conversely, some may argue competitive power generation is unfairly advantaged.
  • Grid integration complexity: Water utilities lack traditional power sector expertise, raising questions about interconnection safety, reliability standards compliance, and operational coordination with retail electric providers.

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

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