This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.
Amend Amendment No. 1 by P. King to CSSB 483 (house committee
printing) by striking the text of the amendment after page 1, line
2, and substituting the following:
(1) Add the following appropriately numbered items to read
as follows:
(__) In the recital to SECTION 1 of the bill (page 1, line
6), strike "adding Subsection (a-1)" and substitute "adding
Subsections (a-1) and (a-2)".
(__) In Section 39.152(a)(2), Utilities Code, as amended by
SECTION 1 of the bill (page 1, line 15), strike "and" and substitute
"[and]".
(__) In Section 39.152(a)(3), Utilities Code, as amended by
SECTION 1 of the bill (page 1, line 19), strike the period and
substitute the following:
; and
(4) no person owns, controls, or owns and controls in
any combination more than 40 percent of the installed generation
capacity located in an ERCOT zone as provided by Subsection (a-2)
and as determined according to Section 39.154(a)(2).
(__) In Section 39.152, Utilities Code, as amended by
SECTION 1 of the bill (page 2, between lines 4 and 5), insert the
following:
(a-2) For purposes of Subsection (a)(4), the ERCOT zones are
the congestion zones determined by the ERCOT independent
organization and in effect as of January 1, 2007. This zonal
restriction expires on the later of the first anniversary of the
date of the implementation of the ERCOT nodal market or December 31,
2009. In determining the percentage of installed generation
capacity owned or controlled by a person under Subsection (a)(4),
the commission shall, for purposes of calculating the numerator and
notwithstanding any other provision of this chapter, exclude
capacity:
(1) from a generating facility that uses nuclear
energy to generate electricity for sale and that is constructed
after January 1, 2007;
(2) from a coal-fired generating facility that uses
integrated gasification combined cycle technology or undiluted
high-flame temperature oxygen combustion technology that excludes
air; or
(3) from a generating facility that uses a renewable
energy technology, as that term is defined by Section 39.904(d),
and that is not dispatchable;
(4) from a generating facility owned by a municipally
owned utility or electric cooperative, provided that if the
facility is owned only partly by the municipally owned utility or
electric cooperative, the commission shall exclude only the
proportion of that capacity that is equal to the proportion the
municipality's or electric cooperative's ownership bears to the
total ownership;
(5) in an amount equivalent to the sum of firm
bilateral energy or capacity sales for delivery in the relevant
ERCOT zone that are not indexed to real time energy clearing prices
and that are for a term of, or consecutive or overlapping terms
adding up to, 12 months or longer by the power generation company or
through its marketing affiliate to unaffiliated third parties as
reduced by firm bilateral energy or capacity purchases for delivery
in the same ERCOT zone that are not indexed to real time energy
clearing prices for a term of, or consecutive or overlapping terms
adding up to, 12 months or longer, provided that the power
generation company and marketing affiliate shall certify to the
commission each month the amounts excluded under this subdivision;
and
(6) from generating facilities that were mothballed as
of January 1, 2007, and remain mothballed.
(__) In Section 39.152(a-1), Utilities Code, as added by
SECTION 1 of the bill (page 1, lines 20-24), strike
"Notwithstanding Subsection (a)(3), the commission may certify a
power region in which a person owns, controls, or owns and controls
in any combination more than 20 percent of the installed generation
capacity located in or capable of delivering electricity to the
power region" and substitute "Notwithstanding Subsections (a)(3)
and (4), the commission may certify a power region in which a person
owns, controls, or owns and controls in any combination more than 20
percent of the total installed generation capacity located in or
capable of delivering electricity to the power region".
(2) On page 1 of the amendment, strike lines 15 and 16 and
substitute the following:
(3) In the recital to SECTION 3 of the bill (page 4, line
19), strike "Subsections (a) and (c) and adding Subsection (a-1)"
and substitute "Subsections (a), (c), and (e), and adding
Subsections (a-1) and (a-2)".
(3) Add the following appropriately numbered items and
renumber subsequent items accordingly:
(__) In Section 39.154(a), Utilities Code, as amended by
SECTION 3 of the bill (page 4, lines 23-25), strike "control in any
combination more than 20 percent of the installed generation
capacity located in, or capable of delivering electricity to, a
power region." and substitute:
control in any combination more than:
(1) 20 percent of the installed generation capacity
located in, or capable of delivering electricity to, a power
region; or
(2) 40 percent of the installed generation capacity
located in an ERCOT zone as provided by Subsection (a-2).
(__) In Section 39.154, Utilities Code, as amended by
SECTION 3 of the bill (page 5, between lines 4 and 5), insert the
following:
(a-2) For purposes of Subsection (a)(2), the ERCOT zones are
the congestion zones determined by the ERCOT independent
organization and in effect as of January 1, 2007. This zonal
restriction expires on the later of the first anniversary of the
date of the implementation of the ERCOT nodal market or December 31,
2009. In determining the percentage of total installed generation
capacity owned or controlled by a power generation company under
Subsection (a)(2), the commission shall, for purposes of
calculating the numerator and notwithstanding any other provision
of this chapter, exclude capacity:
(1) from a generating facility that uses nuclear
energy to generate electricity for sale and that is constructed
after January 1, 2007;
(2) from a coal-fired generating facility that uses
integrated gasification combined cycle technology;
(3) from a generating facility that uses a renewable
energy technology, as that term is defined by Section 39.904(d),
and that is not dispatchable;
(4) from a generating facility owned by a municipally
owned utility or electric cooperative, provided that if the
facility is owned only partly by the municipally owned utility or
electric cooperative, the commission shall exclude only the
proportion of that capacity that is equal to the proportion the
municipality's or electric cooperative's ownership bears to the
total ownership;
(5) in an amount equivalent to the sum of firm
bilateral energy or capacity sales for delivery in the relevant
ERCOT zone that are not indexed to real time energy clearing prices
and that are for a term of, or consecutive or overlapping terms
adding up to, 12 months or longer by the power generation company or
through its marketing affiliate to unaffiliated third parties as
reduced by firm bilateral energy or capacity purchases for delivery
in the same ERCOT zone that are not indexed to real time energy
clearing prices for a term of, or consecutive or overlapping terms
adding up to, 12 months or longer, provided that the power
generation company and marketing affiliate shall certify to the
commission each month the amounts excluded under this subdivision;
and
(6) from generating facilities that were mothballed as
of January 1, 2007, and remain mothballed.
(__) In Section 39.154(c), Utilities Code, as amended by
SECTION 3 of the bill (page 5, line 9), between "power region" and
", reduced", insert "or the ERCOT zone".
(4) On page 2, line 18 of the amendment, between
"Subsections" and "(f-1)", insert "(b-1),".
(5) On page 3 of the amendment, strike lines 2-5 and
substitute the following:
"enter into an agreement to mitigate the potential for market power
abuse with the wholesale electric market monitor" and substitute
"file a market power mitigation plan described by Subsection (a)(2)
with the commission, which shall apply to generation capacity
offered into any market operated by the independent organization
and must be designed to provide recovery for incremental costs,
including operational and start-up costs, provided that this
subsection does not restrict a person subject to a mitigation plan
from receiving the market clearing price for services offered in
any market operated by the independent organization,".
(6) Add the following appropriately numbered item to read as
follows and renumber subsequent items accordingly:
(__) In Section 39.156, Utilities Code, as amended by
SECTION 5 of the bill (page 6, between lines 25 and 26), insert the
following:
(b-1) An electric utility or power generation company that
owns, controls, or owns and controls in any combination more than 40
percent of the total installed generation capacity located in an
ERCOT zone, as defined by Section 39.154(a)(2), not later than the
90th day after the date the utility or company knew or should have
known that its generation capacity exceeds the 40 percent
limitation prescribed by this subsection, shall file a market power
mitigation plan described by Subsection (b)(2). Subsections (f),
(f-1), (f-2), (f-3), and (f-4) apply to the filing. The commission
may not require divestiture or auction of installed generation
capacity described by this subsection or take any action under this
section that prohibits an electric utility or power generation
company from constructing additional generating facilities. For
purposes of this subsection, the ERCOT zones are the congestion
zones determined by the ERCOT independent organization and in
effect as of January 1, 2007. This zonal restriction expires on the
later of the first anniversary of the date of the implementation of
the ERCOT nodal market or December 31, 2009. In determining the
percentage of total installed generation capacity owned or
controlled by a power generation company under this subsection, the
commission shall, for purposes of calculating the numerator and
notwithstanding any other provision of this chapter, exclude
capacity:
(1) from a generating facility that uses nuclear
energy to generate electricity for sale and that is constructed
after January 1, 2007;
(2) from a coal-fired generating facility that uses
integrated gasification combined cycle technology;
(3) from a generating facility that uses a renewable
energy technology, as that term is defined by Section 39.904(d),
and that is not dispatchable;
(4) from a generating facility owned by a municipally
owned utility or electric cooperative, provided that if the
facility is owned only partly by the municipally owned utility or
electric cooperative, the commission shall exclude only the
proportion of that capacity that is equal to the proportion the
municipality's or electric cooperative's ownership bears to the
total ownership;
(5) in an amount equivalent to the sum of firm
bilateral energy or capacity sales for delivery in the relevant
ERCOT zone that are not indexed to real time energy clearing prices
and that are for a term of, or consecutive or overlapping terms
adding up to, 12 months or longer by the power generation company or
through its marketing affiliate to unaffiliated third parties as
reduced by firm bilateral energy or capacity purchases for delivery
in the same ERCOT zone that are not indexed to real time energy
clearing prices for a term of, or consecutive or overlapping terms
adding up to, 12 months or longer, provided that the power
generation company and marketing affiliate shall certify to the
commission each month the amounts excluded under this subdivision;
and
(6) from generating facilities that were mothballed as
of January 1, 2007, and remain mothballed.