The Texas Senate has introduced a new bill, Senate Bill 2012 (SB 2012), which aims to regulate the retail energy market in the state. One of the key provisions of the bill is to cap the market share of a Retail Electric Provider (REP), including its corporate parent, at 20% of the customers in the competitive retail market in a power region like ERCOT.

This means that any REP with a market share above the prescribed limit would need to file a plan with the Public Utility Commission (PUC) to reduce its market share. The PUC would evaluate the plan based on its impact on competitors in the generation market and the public interest, among other factors. The approved plan could be amended or repealed on a showing of good cause.

The purpose of this provision is to promote competition in the retail energy market and prevent monopolies from dominating the market. This would provide consumers with more choices and potentially lower prices. Currently, a few large REPs dominate the market, and this new regulation could break their hold on the market.

This provision has been met with mixed reactions from the industry. Supporters believe that it would level the playing field and promote fair competition. However, opponents argue that it would stifle innovation and investment in the market, making it less attractive to new entrants.

Overall, SB 2012 aims to bring much-needed reforms to the retail energy market in Texas. If passed, it could have a significant impact on the industry and consumers alike. While the provision to cap the market share of REPs is just one aspect of the bill, it is an essential step towards creating a more competitive and efficient market.

‍