BILL ANALYSIS

Senate Research Center	S.B. 1929
88R9931 JXC-D	By: Johnson
	Business & Commerce
	3/23/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Since 2021, large load interconnections in the Electric Reliability Council of Texas (ERCOT) have been on the rise. Such new players are most commonly data centers, crypto mining facilities, hydrogen production facilities, and other high-demand assets. The size and potential ability of large electrical loads (LELs) to throttle down or shut off completely with or without knowledge by ERCOT presents grid stability issues. ERCOT's inability to see or control the behavior of LELs, which are defined as loads greater than 75 MW's that rapidly increase or decrease power consumption, hurts ERCOT's maintenance of grid stability. This issue would be reconciled through legislation removing any uncertainty about ERCOT's authority to require LELs to register with ERCOT and clarifying ERCOT's authority to establish reasonable operating restrictions on LELs as necessary to reliably run the grid. 

S.B. 1929 would authorize ERCOT to require a person wanting to connect to the grid with a large electricity-demanding project to provide information relating to existing and future electricity consumption ERCOT deems necessary. By amending Subchapter D, Chapter 39 of the Utilities Code, S.B. 1929 seeks to grant ERCOT the authority and ability to require information and registration from LELs. 

Key Provisions:

S.B. 1929 amends Subchapter D, Chapter 39, of the Utilities Code by adding Section 39.166 which authorizes ERCOT to require facilities seeking to participate in the electric grid with a large electrical load to:

� provide information about existing or future load demands, allowing visibility to ERCOT of the facility�s real-time power demands, to ensure grid reliability; and

� register with ERCOT.

As proposed, S.B. 1929 amends current law relating to the authority of an independent organization certified for the ERCOT power region to require information from and registration by certain facilities.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter D, Chapter 39, Utilities Code, by adding Section 39.166, as follows:

Sec. 39.166. LARGE ELECTRICAL LOADS. Authorizes the independent organization certified under Section 39.151 (Essential Organizations) for the Electric Reliability Council of Texas power region to require a person seeking to receive retail electric service for a facility that the organization anticipates will require a large electrical load to:

(1) provide to the organization any information about the person or existing or future load of the facility that is reasonably necessary for the purposes described by Section 39.151(a) (relating to requiring a power region to establish one or more independent organizations to perform certain functions), including telemetry of the facility's real-time electrical load; and

(2) register the facility with the organization.

SECTION 2. Effective date: September 1, 2023.