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A BILL TO BE ENTITLED
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AN ACT
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relating to electricity pricing rules and operating procedures that |
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eliminate or compensate for market distortion caused by certain |
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federal tax credits. |
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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 39.166 to read as follows: |
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Sec. 39.166. MARKET DISTORTION RESPONSE. (a) The |
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commission and the ERCOT independent system operator shall adopt |
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rules, operating procedures, and protocols to eliminate or |
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compensate for any distortion in electricity pricing in the ERCOT |
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power region caused by a federal tax credit provided under 26 U.S.C. |
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Section 45. |
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(b) Rules, operating procedures, and protocols adopted |
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under this section must ensure that costs imposed on the system by |
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the sale of electricity that is eligible for a federal tax credit |
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provided under 26 U.S.C. Section 45, including costs of maintaining |
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sufficient capacity to serve load at the summer peak demand caused |
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by the loss of new investment from below-market prices, are paid by |
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the parties that impose the costs. |
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(c) In conjunction with adopting rules, operating |
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procedures, and protocols under this section, the commission and |
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the ERCOT independent system operator shall eliminate any rules, |
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operating procedures, or protocols that attempt to adjust |
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electricity prices to reflect the value of reserves at different |
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reserve levels based on the probability of reserves falling below |
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the minimum contingency level and the value of lost load. |
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SECTION 2. This Act takes effect on the 91st day after the |
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last day of the legislative session. |