The Promise of Senate Bill 75

Written by Jordan E. Bailey, KBH Energy Center Graduate Fellow

Will Senate Bill 75 adequately address the looming and dangerous risks facing the power grid? Not completely. With bipartisan support, SB 75 became effective in June 2025. The bill created the Texas Grid Security Commission, a group tasked with identifying natural and manmade threats to the grid and critical infrastructure. The Commission mitigates these vulnerabilities by developing resiliency standards and conducting biennial attack simulations. The passage of SB 75 marks an important first step in securing Texas’ power supply, but time will tell if the bill is able to produce results.

As demonstrated by the 2011 and 2021 Texas Power Outages, grid failures cause death, disruption of essential services, and significant monetary losses. Fortunately, Texas is uniquely positioned to be a leader in grid resilience as it is the only state with the majority of its electric grid within its jurisdiction.

SB 75 proponents argue that grid security will entice more businesses to Texas, foster public confidence, and support essential services. However, current market incentives and regulations do not adequately ensure that electric utilities prioritize grid resilience and security. So, the bill successfully centralizes public and private actors to identify risks, create solutions, and test the resiliency of the Texas grid.

In December 2026, the Commission will release its first reports on specific threats and hazards facing the Texas grid and critical infrastructure. Presuming Texas’ grid is exposed to similar threats as the rest of the nation, SB 75 provides a foundation for protecting the grid from attacks, extreme weather, and increasing electricity demand.

Why is this important? The Texas grid is undergoing significant transformation as energy demand increases at unprecedented rates. Compared to other U.S. grids, ERCOT experienced the fastest demand growth in 2024 and 2025. While changes to the grid are necessary, transformation makes the grid more complex, creates a larger attack surface for hackers and likely leads to more costly effects.

Technological advancements, including AI, have made cyberattacks more sophisticated. Hackers utilize deepfakes and malware, leaving energy systems vulnerable. Technology such as drones and other remotely controlled devices pose physical risks to grids. Physical attacks can cause outages and replacement delays, especially when materials face supply chain constraints or long lead times.

The bill requires the Texas Public Utilities Commission (PUC) and other ERCOT certified independent organizations to perform certain simulations to “mitigate and prepare” for attacks. These tabletop exercises identify roles and responsibilities for several stakeholders, including law enforcement, power generators, and transmission and distribution service providers, in the event of an attack. Additionally, the presiding officer of the Commission may consult cybersecurity experts. Importantly, the Texas National Guard will be trained as first responders, equipped to assist in the aftermath of future cyber threats and attacks.

Moreover, the bill thoughtfully carves out an information security working group, preserving the delicate balance between transparency and confidentiality. The working group determines what information obtained is confidential, who has access to what information, and who should apply for federal security clearances. Equipped with security clearances, individuals may be briefed on specific security threats facing the grid.

While skeptics voice that the bill simply creates another regulatory board, or that it does not have any real bite, it is a diagnostic that will supplement future action. In order to take meaningful steps forward and prepare for disastrous outages, the Commission needs to understand the risks, their respective likelihoods, and the feasibility of solutions. Once equipped with a report on the imminent and costly threats facing the grid, the Texas legislature should rapidly delegate implementations and allocate the costs of securing our power supply.