87S10240 JXC-D
 
  By: Reynolds H.B. No. 112
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of the Public Utility Commission of Texas
  to ensure the independent organization certified for the ERCOT
  power region has adequate reserve power to prevent blackout
  conditions.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 39, Utilities Code, is
  amended by adding Section 39.166 to read as follows:
         Sec. 39.166.  ENSURING RESERVE POWER CAPACITY. (a) The
  commission by rule shall develop a process for obtaining emergency
  reserve power generation capacity as appropriate to prevent
  blackout conditions caused by shortages of generated power in the
  ERCOT power region. The rules must provide:
               (1)  parameters for estimating the amount of emergency
  reserve power generation capacity necessary to prevent blackout
  conditions; and
               (2)  mechanisms for equitably sharing the costs of
  making the reserve capacity available and the costs of generated
  power provided to prevent blackout conditions.
         (b)  In accordance with rules adopted under Subsection (a),
  an independent organization certified under Section 39.151 for the
  ERCOT power region shall adopt procedures and enter contracts as
  necessary to ensure the availability of a defined amount of
  emergency reserve power generation capacity the organization may
  call on to prevent blackouts caused by shortages of generated
  power.
         (c)  Before the independent organization calls on the
  emergency reserve power generation capacity to prevent blackout
  conditions, the organization shall use all other sources of power
  and demand reduction available in accordance with commission rules
  adopted under this section.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect on the 91st day after the last day of the
  legislative session.