85R21958 JXC-D
 
  By: Oliveira H.B. No. 1665
 
  Substitute the following for H.B. No. 1665:
 
  By:  Geren C.S.H.B. No. 1665
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of cross-border electric generating
  facilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 39, Utilities Code, is
  amended by adding Section 39.159 to read as follows:
         Sec. 39.159.  SWITCHABLE ELECTRIC GENERATING FACILITIES FOR
  CROSS-BORDER DISPATCH. (a) In this section:
               (1)  "Critical load condition" means a temporary
  condition on a power grid that requires or may require the
  interruption of firm load.
               (2)  "Mexican power grid" means an electric power grid
  in the United Mexican States that is adjacent to the ERCOT power
  grid.
               (3)  "Switchable electric generating facility" means
  an electric generating facility that consists of one or more units
  that:
                     (A)  are capable of synchronizing with and
  dispatching into the ERCOT power grid or the Mexican power grid at
  different times; and
                     (B)  can each dispatch into only the ERCOT power
  grid or the Mexican power grid at any given time.
         (b)  Subject to Subsection (c), the commission shall approve
  a binding coordination agreement made between the operators of the
  ERCOT power grid and the Mexican power grid that governs the
  dispatching of energy into the ERCOT power grid and the Mexican
  power grid from a new switchable electric generating facility that
  is capable of making all generating units available to serve the
  ERCOT power grid during an emergency and that is commissioned after
  September 1, 2017, if the agreement complies with the requirements
  of this section.
         (c)  The commission may impose reasonable conditions on a
  binding coordination agreement to protect the public interest.
         (d)  The commission shall approve a binding coordination
  agreement filed with the commission that complies with the
  requirements of this section not later than the 185th day after the
  date the agreement is filed.
         (e)  A binding coordination agreement must: 
               (1)  require that at least 35 percent of the switchable
  electric generating facility be committed to serve the ERCOT power
  grid to the exclusion of the Mexican power grid during an ERCOT
  critical load condition, regardless of conditions on the Mexican
  power grid;
               (2)  provide reasonable assurance that the remaining
  nameplate capacity of the switchable electric generating facility
  cannot be denied to the operator of the Mexican power grid when the
  facility is called on by the operator of the Mexican power grid,
  regardless of whether an ERCOT critical load condition exists on
  the ERCOT power grid, unless the remaining capacity:
                     (A)  has been offered to the ERCOT power grid and
  is selected by the operator of the ERCOT power grid to provide
  ancillary services in accordance with Section 35.004(e); or
                     (B)  is otherwise expressly contractually
  committed to the operator of the ERCOT power grid; and
               (3)  provide that the owner of the switchable electric
  generating facility is responsible for any penalties imposed on the
  operator of the ERCOT power grid by the commission, the Texas
  Reliability Entity, the Federal Energy Regulatory Commission, or
  the North American Electric Reliability Corporation for any action
  taken by the operator of the ERCOT power grid in accordance with
  Subdivision (2) if the entity imposing the penalty determines that
  a wrongful action of the switchable electric generating facility
  caused the violation for which the penalty is imposed.
         (f)  A binding coordination agreement may limit the
  provision of service from a unit to the ERCOT power grid during an
  emergency.
         SECTION 2.  This Act takes effect September 1, 2017.