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               A BILL TO BE ENTITLED
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               AN ACT
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            relating to the authority of the Public Utility Commission of Texas  | 
         
         
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            to ensure the independent organization certified for the ERCOT  | 
         
         
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            power region has adequate reserve power to prevent blackout  | 
         
         
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            conditions. | 
         
         
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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.  ENSURING RESERVE POWER CAPACITY.  (a)  The  | 
         
         
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            commission by rule shall develop a process for obtaining emergency  | 
         
         
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            reserve power generation capacity as appropriate to prevent  | 
         
         
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            blackout conditions caused by shortages of generated power in the  | 
         
         
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            ERCOT power region.  The rules must provide: | 
         
         
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                         (1)  parameters for estimating the amount of emergency  | 
         
         
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            reserve power generation capacity necessary to prevent blackout  | 
         
         
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            conditions; and | 
         
         
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                         (2)  mechanisms for equitably sharing the costs of  | 
         
         
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            making the reserve capacity available and the costs of generated  | 
         
         
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            power provided to prevent blackout conditions. | 
         
         
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                   (b)  In accordance with rules adopted under Subsection (a),  | 
         
         
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            an independent organization certified under Section 39.151 for the  | 
         
         
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            ERCOT power region shall adopt procedures and enter contracts as  | 
         
         
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            necessary to ensure the availability of a defined amount of  | 
         
         
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            emergency reserve power generation capacity the organization may  | 
         
         
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            call on to prevent blackouts caused by shortages of generated  | 
         
         
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            power. | 
         
         
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                   (c)  Before the independent organization calls on the  | 
         
         
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            emergency reserve power generation capacity to prevent blackout  | 
         
         
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            conditions, the organization shall use all other sources of power  | 
         
         
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            and demand reduction available in accordance with commission rules  | 
         
         
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            adopted under this section. | 
         
         
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                   SECTION 2.  This Act takes effect immediately if it receives  | 
         
         
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            a vote of two-thirds of all the members elected to each house, as  | 
         
         
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            provided by Section 39, Article III, Texas Constitution.  If this  | 
         
         
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            Act does not receive the vote necessary for immediate effect, this  | 
         
         
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            Act takes effect on the 91st day after the last day of the  | 
         
         
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            legislative session. |