State Energy Marketing Program

The State Power Program helps public customers save on their electricity bills by buying their electricity from the GLO. Revenue earned by the program flows directly to the Texas Permanent School Fund helping pay for Texas public education. The State Power Program provides electricity to its customers through third-party retail electric providers.

SEMP Update May 30, 2019

Background 

In 1999, the Texas Legislature passed legislation enacting a competitive energy marketplace. At the time, many were concerned about the fluctuating electricity market, and thus the GLO was tasked with providing a low-cost solution for government entities to soften the shock of deregulation. Since the original legislation was passed in the 79th legislature, the electric marketplace in Texas has stabilized.

What does HB 2263 do? 

H.B. 2263 (86 R) gradually phases out the State Power Program over a five-year period and removes the GLO’s authorization to sell power directly to a public retail customer. Contracts in effect prior to May 17th, 2019 may be performed pursuant to their terms. No new contracts for the State Power Program will be accepted; however, existing contracts still in effect may be amended and extended. All public schools will be exempt from the gross receipts tax beginning in 2024 to level the playing field by providing tax relief for school districts not in the power program at that time. The legislation was signed into law on May 17th, 2019.

What Happens Now? 

• No new customers will be accepted into the State Power Program.
• Existing contracts will be maintained until the date of the agreement expires.
• Existing contracts may be extended; however, the agreement may not be extended beyond 12/31/23.
• The final bill text can be found here. 

The State Gas Program helps public customers save money on their natural gas bills by buying gas from the GLO. Revenue earned by the program flows directly to the Texas Permanent School Fund helping pay for Texas public education.

• Natural Gas Sales Procedures
• Glossary of Terms
• Frequently Asked Questions
• Gas Program Contract Exhibit A
• Gas Program Contract Exhibit B
• Gas Program Contract Exhibit C
• Gas Program Example RFP
• Current Energy Transition Price per kWh with Cavallo as GLO Provider
• Cavallo Energy Texas LLC
   

• Use of State Energy Resources (TNRC - Section 31.401)
• Statute for Restructuring of Electric Utility Industry (Utilities Code)
• State Energy Sales (Utilities Code)
• State Agency Definitions (Government Code)
• State Authority to Sell or Convey Power (Utilities Code - Section 35.101-35.106)
• Gas Required Service to Public Retail Customer (Utilities Code - Section 104.2545)
• Rules for State Gas Program (TAC)
• Gas Contract Maintenance Fees (TAC - 18A)