Regular Session
Government Affairs & Regulatory Compliance Analysis
SB1856 establishes a mandatory Capacity Cost Recovery Rider (CCRR), allowing electric utilities in the SERC region (East Texas/non-ERCOT) to pass capacity costs directly to ratepayers annually without a full base rate case. This legislation introduces immediate rate volatility for commercial and industrial operations in East Texas, requiring significant adjustments to utility budget forecasting and lease structures.
Sen. Charles Creighton·Senate Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-09-01). Review with your legal and compliance teams to understand implications.
Affected business types:
highSignificant operational investment may be required.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about SB1856
SB1856 establishes a mandatory Capacity Cost Recovery Rider (CCRR), allowing electric utilities in the SERC region (East Texas/non-ERCOT) to pass capacity costs directly to ratepayers annually without a full base rate case. This legislation introduces immediate rate volatility for commercial and industrial operations in East Texas, requiring significant adjustments to utility budget forecasting and lease structures.
SB1856 was authored by Texas Senator Charles Creighton during the Regular Session.
SB1856 was signed into law by Governor Greg Abbott on June 20, 2025.
SB1856 is enforced by Public Utility Commission of Texas.
The regulatory priority for SB1856 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB1856 is estimated as "high". This may vary based on industry and implementation requirements.
SB1856 addresses topics including state finances, state finances--management & control, utilities, utilities--electric and public utility commission.
Key dates for SB1856: Effective date is 2025-09-01. Rulemaking: Must issue an order approving, modifying, or denying a proposed or updated capacity cost recovery rider application (statutory mandate for processing, rather than general rulemaking). (60 days post-application). Consult with legal counsel regarding applicability.
SB1856 establishes the following penalties: administrative penalty of Disallowance of cost recovery for Costs found to be unreasonable, imprudently incurred, or not properly allocable to Texas retail customers during the reconciliation phase in the next base rate proceeding.. Consult with legal counsel for specific applicability to your situation.
SB1856 primarily affects utility companies and energy providers. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
