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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of electric energy storage facilities in the |
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ERCOT power region. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 35.151, Utilities Code, is amended to |
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read as follows: |
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Sec. 35.151. ELECTRIC ENERGY STORAGE. (a) This subchapter |
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applies to electric energy storage equipment or facilities that are |
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intended to provide energy or ancillary services at wholesale, |
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including electric energy storage equipment or facilities listed on |
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a power generation company's registration with the commission or, |
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for an exempt wholesale generator, on the generator's registration |
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with the Federal Energy Regulatory Commission. |
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(b) This subchapter does not apply to ownership or operation |
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of electric energy storage equipment or facilities outside of |
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ERCOT. |
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SECTION 2. Subchapter E, Chapter 35, Utilities Code, is |
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amended by adding Section 35.153 to read as follows: |
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Sec. 35.153. USE OF ELECTRIC ENERGY STORAGE FACILITIES FOR |
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DISTRIBUTION SYSTEM RELIABILITY. (a) With prior approval by the |
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commission and to ensure reliable service to retail customers, a |
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transmission and distribution utility may enter into an agreement |
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with a power generation company to provide electricity from an |
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energy storage facility. |
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(b) An agreement under Subsection (a) is limited to |
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situations where construction of traditional distribution |
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facilities is not cost-effective when compared to the use of an |
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energy storage facility. |
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(c) A transmission and distribution utility must issue a |
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request for proposals to provide electricity from an energy storage |
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facility to meet specific reliability needs. |
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(d) The energy storage facility may be used to offer or sell |
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electric energy or ancillary services so long as the power |
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generation company reserves the capacity required by the agreement |
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with the transmission and distribution utility. |
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(e) The energy storage facility may be discharged for |
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reliability purposes only when and as directed by the transmission |
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and distribution utility. |
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(f) An agreement under Subsection (a) may provide that the |
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energy storage facility owner will reimburse the transmission and |
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distribution utility for an administrative penalty the commission |
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assessed because the facility failed to meet the requirements of |
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the agreement. |
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(g) An agreement between a transmission and distribution |
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utility and a power generation company that owns an energy storage |
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facility shall be reviewed in a proceeding under Chapter 36. The |
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transmission and distribution utility has the burden of |
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establishing that the agreement, including associated costs, is |
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reasonable and necessary. |
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(h) If a transmission and distribution utility issues a |
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request for proposals to provide electricity from an energy storage |
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facility to meet specific reliability needs and does not receive an |
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offer that meets the requirements of the request for proposals, |
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then, with prior approval by the commission, the transmission and |
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distribution utility may own and operate an energy storage facility |
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to ensure reliable delivery of electricity to retail customers. |
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The total amount of energy storage capacity owned by a single |
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transmission and distribution utility for this purpose may not |
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exceed 10 megawatts. |
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(i) A transmission and distribution utility that owns or |
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operates an energy storage facility in accordance with Subsection |
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(h) must purchase the energy to charge the facility from a retail |
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electric provider and sell the energy discharged from the energy |
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storage device to the same retail electric provider. |
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(j) An energy storage facility described by Subsection (h) |
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may not be used to offer or sell electric energy or ancillary |
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services except for sales to the retail electric provider that |
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serves the transmission and distribution utility's energy storage |
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facility when needed to ensure reliable service to retail |
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customers. |
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(k) A transmission and distribution utility that owns or |
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operates an energy storage facility in accordance with Subsection |
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(h) is not a power generation company. |
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(l) The commission shall adopt rules establishing criteria: |
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(1) for agreements under Subsection (a), which must |
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include the requirements of Subsections (b)-(f); and |
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(2) for ownership and operation of energy storage |
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facilities by transmission and distribution utilities under |
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Subsection (h), including the recovery of associated costs. |
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SECTION 3. The Public Utility Commission of Texas shall |
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adopt rules required under Section 35.153, Utilities Code, as added |
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by this Act, as soon as practicable after the effective date of this |
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Act. |
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SECTION 4. This Act takes effect September 1, 2019. |