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A BILL TO BE ENTITLED
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AN ACT
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relating to cost recovery for costs arising from the |
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interconnection of certain electric generation facilities with the |
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ERCOT transmission system. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 35.004, Utilities Code, is amended by |
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amending Subsection (d) and adding Subsection (d-1) to read as |
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follows: |
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(d) The commission shall price wholesale transmission |
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services within ERCOT based on the postage stamp method of pricing |
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under which a transmission-owning utility's rate is based on the |
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ERCOT utilities' combined annual costs of transmission, other than |
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costs that exceed the allowance described in Subsection (d-1), |
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divided by the total demand placed on the combined transmission |
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systems of all such transmission-owning utilities within a power |
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region. An electric utility subject to the freeze period imposed by |
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Section 39.052 may treat transmission costs in excess of |
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transmission revenues during the freeze period as an expense for |
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purposes of determining annual costs in the annual report filed |
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under Section 39.257. Notwithstanding Section 36.201, the |
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commission may approve wholesale rates that may be periodically |
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adjusted to ensure timely recovery of transmission investment. |
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Notwithstanding Section 36.054(a), if the commission determines |
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that conditions warrant the action, the commission may authorize |
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the inclusion of construction work in progress in the rate base for |
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transmission investment required by the commission under Section |
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39.203(e). |
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(d-1) The commission by rule shall establish a reasonable |
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allowance for capital costs incurred to interconnect generation |
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resources and electric energy storage resources described by |
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Section 35.152(a) with the ERCOT transmission system, which must |
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include the costs of the direct interconnection of the generator to |
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the system and upgrades directly caused by the interconnection. |
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Any costs that exceed the allowance must be borne directly by the |
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generation resource or electric energy storage resource receiving |
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interconnection service through the facilities. |
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SECTION 2. This Act takes effect September 1, 2021. |