| |
| |
| |
|
|
AN ACT
|
|
|
relating to use of electric energy storage facilities in the ERCOT |
|
|
power region. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 35.151, Utilities Code, is amended to |
|
|
read as follows: |
|
|
Sec. 35.151. ELECTRIC ENERGY STORAGE. This subchapter |
|
|
applies only to the ownership or operation of electric energy |
|
|
storage equipment or facilities in the ERCOT power region that are |
|
|
intended to: |
|
|
(1) provide energy or ancillary services at wholesale, |
|
|
including electric energy storage equipment or facilities listed on |
|
|
a power generation company's registration with the commission or, |
|
|
for an exempt wholesale generator, on the generator's registration |
|
|
with the Federal Energy Regulatory Commission; or |
|
|
(2) provide reliable delivery of electric energy to |
|
|
distribution customers. |
|
|
SECTION 2. Subchapter E, Chapter 35, Utilities Code, is |
|
|
amended by adding Section 35.153 to read as follows: |
|
|
Sec. 35.153. CONTRACTS FOR ELECTRIC ENERGY STORAGE FOR |
|
|
RELIABILITY SERVICES. (a) A transmission and distribution |
|
|
utility, with prior approval of the commission, may contract with a |
|
|
power generation company to provide electric energy from an |
|
|
electric energy storage facility to ensure reliable service to |
|
|
distribution customers. |
|
|
(b) The commission may not authorize ownership of an |
|
|
electric energy storage facility by a transmission and distribution |
|
|
utility. |
|
|
(c) Before entering into a contract under Subsection (a), |
|
|
the transmission and distribution utility must issue a request for |
|
|
proposals for use of an electric energy storage facility to meet the |
|
|
utility's reliability needs. |
|
|
(d) A transmission and distribution utility may enter into a |
|
|
contract under Subsection (a) only if use of an electric energy |
|
|
storage facility is more cost-effective than construction or |
|
|
modification of traditional distribution facilities. |
|
|
(e) A transmission and distribution utility may not enter |
|
|
into a contract under Subsection (a) that reserves an amount of |
|
|
capacity exceeding the amount of capacity required to ensure |
|
|
reliable service to the utility's distribution customers. |
|
|
(f) A power generation company that owns or operates an |
|
|
electric energy storage facility subject to a contract under |
|
|
Subsection (a) may sell electric energy or ancillary services |
|
|
through use of the facility only to the extent that the company |
|
|
reserves capacity as required by the contract. |
|
|
(g) A power generation company that owns or operates an |
|
|
electric energy storage facility subject to a contract under |
|
|
Subsection (a) may not discharge the facility to satisfy the |
|
|
contract's requirements unless directed by the transmission and |
|
|
distribution utility. |
|
|
(h) A contract under Subsection (a) must require a power |
|
|
generation company that owns or operates an electric energy storage |
|
|
facility to reimburse a transmission and distribution utility for |
|
|
the cost of an administrative penalty assessed against the utility |
|
|
for a violation caused by the facility's failure to meet the |
|
|
requirements of the agreement. |
|
|
(i) In establishing the rates of a transmission and |
|
|
distribution utility, a regulatory authority shall review a |
|
|
contract between the utility and a power generation company under |
|
|
Subsection (a). The utility has the burden of proof to establish |
|
|
that the costs of the contract are reasonable and necessary. The |
|
|
regulatory authority may authorize a transmission and distribution |
|
|
utility to include a reasonable return on the payments required |
|
|
under the contract only if the contract terms satisfy the relevant |
|
|
accounting standards for a capital lease or finance lease. |
|
|
(j) The total amount of electric energy storage capacity |
|
|
reserved by contracts under Subsection (a) may not exceed 100 |
|
|
megawatts. The commission shall by rule establish the maximum |
|
|
amount of electric energy storage capacity allotted to each |
|
|
transmission and distribution utility. |
|
|
(k) The commission shall adopt rules as necessary to |
|
|
implement this section and establish criteria for approving |
|
|
contracts under Subsection (a). |
|
|
SECTION 3. The Public Utility Commission of Texas shall |
|
|
adopt rules required by Section 35.153, Utilities Code, as added by |
|
|
this Act, as soon as practicable after the effective date of this |
|
|
Act. |
|
|
SECTION 4. This Act takes effect September 1, 2021. |
|
|
|
|
|
|
| |
| |
| |
| |
______________________________ |
______________________________ |
| |
President of the Senate |
Speaker of the House |
| |
|
|
I hereby certify that S.B. No. 415 passed the Senate on |
|
|
April 9, 2021, by the following vote: Yeas 31, Nays 0. |
|
|
|
| |
| |
______________________________ |
| |
Secretary of the Senate |
| |
|
|
I hereby certify that S.B. No. 415 passed the House on |
|
|
May 26, 2021, by the following vote: Yeas 131, Nays 17, one |
|
|
present not voting. |
|
|
|
| |
| |
______________________________ |
| |
Chief Clerk of the House |
| |
|
|
|
| |
|
|
Approved: |
|
|
|
|
|
______________________________ |
|
|
Date |
|
|
|
|
|
|
|
|
______________________________ |
|
|
Governor |