A federal district judge ruled this week that a provision of a Texas state law favoring in-state utilities for the construction of new electric transmission lines is unconstitutional.
The judgment issued Monday permanently blocks the Public Utility Commission of Texas from enforcing the 2019 “right of first refusal” — or ROFR — law in areas of the state not covered by the Electric Reliability Council of Texas, the state’s main grid operator.
The 2019 state law — passed as S.B. 1938 — only allowed utilities with a presence in Texas to construct new power lines for an interstate grid. Supporters of the law point to a need to bolster reliability, while critics say competition could help more transmission projects get built as the number of renewable energy projects climbs.
“Because SB 1938 facially discriminates based on interstate commerce and does not survive strict scrutiny, the statute is unconstitutional under the Commerce Clause,” wrote Judge Robert Pitman of the U.S. District Court for the Western District of Texas.
