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A BILL TO BE ENTITLED
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AN ACT
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relating to temporary emergency energy facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.918, Utilities Code, is amended by |
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amending Subsections (d) and (f) and adding Subsections (f-1), |
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(f-2), (f-3), (f-4), (k), (l), (m), and (n) to read as follows: |
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(d) A facility [Facilities] described by Subsection (b)(1): |
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(1) must be operated in isolation from the bulk power |
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system; [and] |
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(2) may not be included in independent system |
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operator: |
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(A) locational marginal pricing calculations; |
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(B) pricing; or |
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(C) reliability models; and |
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(3) must be: |
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(A) mobile; and |
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(B) capable of generating electric energy within |
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three hours after being connected to a demand source. |
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(f) A transmission and distribution utility shall[, when |
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reasonably practicable,] use a competitive bidding process to lease |
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facilities under Subsection (b)(1). |
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(f-1) A transmission and distribution utility may not enter |
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into a lease under Subsection (b)(1) unless: |
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(1) the commission first, in a rate proceeding or a |
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separate contested case hearing, authorizes: |
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(A) the total generating capacity the utility may |
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lease; and |
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(B) the functions for which the utility may lease |
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facilities and the generation capacity the utility may lease for |
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each function; or |
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(2) the lease includes a provision that allows |
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alteration of the lease based on commission order or rule. |
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(f-2) The commission may limit the period during which an |
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authorization issued under Subsection (f-1) is valid. |
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(f-3) Notwithstanding Subsections (f) and (f-1)(1), a |
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transmission and distribution utility may enter into a lease under |
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Subsection (b)(1) without competitive bidding or prior commission |
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approval if: |
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(1) the transmission and distribution utility lacks |
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the leased generating capacity necessary to aid in restoring power |
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to the utility's customers during a significant power outage; |
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(2) the amount of leased generating capacity does not |
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significantly exceed the amount of megawatts necessary to restore |
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electric service to the utility's customers during a significant |
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power outage; and |
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(3) the term of the lease does not significantly |
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exceed the time period that is required to restore electric service |
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to the utility's customers during a significant power outage. |
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(f-4) A transmission and distribution utility that enters |
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into a lease in the manner provided by Subsection (f-3) shall |
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provide documentation to justify the amount of leased generating |
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capacity during the first base rate proceeding after the date the |
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lease begins. |
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(k) The Texas Division of Emergency Management, in |
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coordination with the commission and transmission and distribution |
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utilities, shall develop an annex to the state emergency management |
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plan prepared under Section 418.042, Government Code, that |
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addresses planning for deploying facilities leased under |
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Subsection (b). The annex must include procedures for transmission |
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and distribution utilities to maintain a current list of facilities |
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leased under Subsection (b), information submitted to the |
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commission under Subsection (n), and facilities available to be |
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deployed through mutual aid agreements. |
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(l) The list maintained under Subsection (k) must be |
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accessible, on request, to each transmission and distribution |
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utility, the commission, the Texas Division of Emergency |
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Management, and each state agency with emergency response duties. |
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Each transmission and distribution utility that leases a facility |
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described by Subsection (b) shall notify the commission not later |
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than the 30th day after the date of a change in the utility's lease |
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of the facility. |
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(m) The commission by rule shall require a transmission and |
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distribution utility that leases a facility described by Subsection |
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(b) to offer to enter into mutual aid agreements with other |
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transmission and distribution utilities to facilitate the |
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deployment of undeployed facilities on the request of another |
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transmission and distribution utility. |
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(n) The commission by rule shall require a transmission and |
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distribution utility that enters into a mutual aid agreement |
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described by Subsection (m) to: |
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(1) provide to the commission information regarding |
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the agreement not later than the 30th day after the date the utility |
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enters into the agreement; and |
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(2) not later than the 30th day after the date of any |
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change in the required information, provide updated information to |
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the commission. |
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SECTION 2. The changes in law made by this Act to Section |
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39.918(d), Utilities Code, apply only to a temporary emergency |
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electric energy facility leased by a transmission and distribution |
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utility on or after the effective date of this Act. A temporary |
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emergency electric energy facility that was leased by a |
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transmission and distribution utility under Section 39.918(b)(1), |
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Utilities Code, before the effective date of this Act is governed by |
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the law in effect at the time the lease was executed, and the former |
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law is continued in effect for that purpose. |
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SECTION 3. The Public Utility Commission of Texas shall |
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require a transmission and distribution utility to which Section |
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39.918(m), Utilities Code, as added by this Act, applies to make |
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offers for mutual aid agreements before June 1, 2026. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |