82R25943 ALL-D
 
  By: Carona S.B. No. 943
 
  (Anchia)
 
  Substitute the following for S.B. No. 943:  No.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the classification, use, and regulation of electric
  energy storage equipment or facilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 31.002(10), Utilities Code, is amended
  to read as follows:
               (10)  "Power generation company" means a person that:
                     (A)  generates electricity that is intended to be
  sold at wholesale, including the owner or operator of electric
  energy storage equipment or facilities to which Subchapter E,
  Chapter 35, applies;
                     (B)  does not own a transmission or distribution
  facility in this state other than an essential interconnecting
  facility, a facility not dedicated to public use, or a facility
  otherwise excluded from the definition of "electric utility" under
  this section; and
                     (C)  does not have a certificated service area,
  although its affiliated electric utility or transmission and
  distribution utility may have a certificated service area.
         SECTION 2.  Chapter 35, Utilities Code, is amended by adding
  Subchapter E to read as follows:
  SUBCHAPTER E.  ELECTRIC ENERGY STORAGE
         Sec. 35.151.  ELECTRIC ENERGY STORAGE. This subchapter
  applies to electric energy storage equipment or facilities that are
  intended to 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.
         Sec. 35.152.  GENERATION ASSETS.  (a)  Electric energy
  storage equipment or facilities that are intended to be used to sell
  energy or ancillary services at wholesale are generation assets.
         (b)  The owner or operator of electric energy storage
  equipment or facilities that are generation assets under Subsection
  (a) is a power generation company and is required to register under
  Section 39.351(a). The owner or operator of the equipment or
  facilities is entitled to:
               (1)  interconnect the equipment or facilities;
               (2)  obtain transmission service for the equipment or
  facilities; and
               (3)  use the equipment or facilities to sell
  electricity or ancillary services at wholesale in a manner
  consistent with the provisions of this title and commission rules
  applicable to a power generation company or an exempt wholesale
  generator.
         (c)  Notwithstanding Subsection (a), this section does not
  affect a determination made by the commission in a final order
  issued before December 31, 2010.
         SECTION 3.  Section 31.002(10), Utilities Code, as amended
  by this Act, and Subchapter E, Chapter 35, Utilities Code, as added
  by this Act, may not be construed to determine the regulatory
  treatment of electricity acquired to charge electric energy storage
  equipment or facilities and used solely for the purpose of later
  sale as energy or ancillary services.
         SECTION 4.  (a)  The Public Utility Commission of Texas
  shall adopt or revise rules as necessary to implement this Act not
  later than January 1, 2012.
         (b)  The Public Utility Commission of Texas shall ensure that
  the Electric Reliability Council of Texas adopts or revises the
  council's protocols, standards, and procedures to implement this
  Act not later than April 1, 2012.
         SECTION 5.  This Act takes effect September 1, 2011.