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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of cross-border electric generating |
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facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 39, Utilities Code, is |
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amended by adding Section 39.159 to read as follows: |
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Sec. 39.159. SWITCHABLE ELECTRIC GENERATING FACILITIES FOR |
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CROSS-BORDER DISPATCH. (a) In this section: |
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(1) "Critical load condition" means a temporary |
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condition on a power grid that requires or may require the |
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interruption of firm load. |
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(2) "Mexican power grid" means an electric power grid |
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in the United Mexican States that is adjacent to the ERCOT power |
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grid. |
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(3) "Switchable electric generating facility" means |
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an electric generating facility that consists of one or more units |
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that: |
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(A) are capable of synchronizing with and |
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dispatching into the ERCOT power grid or the Mexican power grid at |
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different times; and |
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(B) can each dispatch into only the ERCOT power |
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grid or the Mexican power grid at any given time. |
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(b) Subject to Subsection (c), the commission shall approve |
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a binding coordination agreement made between the operators of the |
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ERCOT power grid and the Mexican power grid that governs the |
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dispatching of energy into the ERCOT power grid and the Mexican |
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power grid from a new switchable electric generating facility that |
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is capable of making all generating units available to serve the |
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ERCOT power grid during an emergency and that is commissioned after |
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September 1, 2017, if the agreement complies with the requirements |
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of this section. |
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(c) The commission may impose reasonable conditions on a |
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binding coordination agreement to protect the public interest. |
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(d) The commission shall approve a binding coordination |
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agreement filed with the commission that complies with the |
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requirements of this section not later than the 185th day after the |
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date the agreement is filed. |
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(e) A binding coordination agreement must: |
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(1) require that at least 35 percent of the switchable |
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electric generating facility be committed to serve the ERCOT power |
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grid to the exclusion of the Mexican power grid during an ERCOT |
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critical load condition, regardless of conditions on the Mexican |
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power grid; |
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(2) provide reasonable assurance that the remaining |
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nameplate capacity of the switchable electric generating facility |
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cannot be denied to the operator of the Mexican power grid when the |
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facility is called on by the operator of the Mexican power grid, |
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regardless of whether an ERCOT critical load condition exists on |
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the ERCOT power grid, unless the remaining capacity: |
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(A) has been offered to the ERCOT power grid and |
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is selected by the operator of the ERCOT power grid to provide |
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ancillary services in accordance with Section 35.004(e); or |
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(B) is otherwise expressly contractually |
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committed to the operator of the ERCOT power grid; and |
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(3) provide that the owner of the switchable electric |
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generating facility is responsible for any penalties imposed on the |
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operator of the ERCOT power grid by the commission, the Texas |
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Reliability Entity, the Federal Energy Regulatory Commission, or |
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the North American Electric Reliability Corporation for any action |
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taken by the operator of the ERCOT power grid in accordance with |
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Subdivision (2) if the entity imposing the penalty determines that |
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a wrongful action of the switchable electric generating facility |
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caused the violation for which the penalty is imposed. |
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(f) A binding coordination agreement may limit the |
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provision of service from a unit to the ERCOT power grid during an |
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emergency. |
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SECTION 2. This Act takes effect September 1, 2017. |