Texas Law Discriminates Against Grid Developers, Court Rules

A federal appeals court found a 2019 Texas law that restricted development of interstate electric transmission projects to utility companies that already operate in the state to be discriminatory, a ruling that could open up a chunk of the Lone Star State to competition.

Texas lawmakers violated the constitutional protections for interstate commerce when they passed the law, the US Court of Appeals for the Fifth Circuit ruled on Tuesday. It overturned a district court finding that backed the law because it regulates only the construction and operation of transmission lines and facilities within Texas.

“That is wrong for ...