87R11600 BRG-D

By: Goodwin H.B. No. 3038

A BILL TO BE ENTITLED

AN ACT

relating to deployment of information technology and electric distribution system upgrades to more equitably distribute rolling blackouts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 38, Utilities Code, is amended by adding Subchapter F to read as follows:

SUBCHAPTER F. UPGRADES FOR ROLLING BLACKOUTS

Sec. 38.151. ADVANCED METER DEPLOYMENT. (a) Each transmission and distribution utility, municipally owned utility, and electric cooperative shall install and connect to an information network, for each customer, an advanced meter capable of allowing the utility or cooperative to shut off the customer's power when a rolling blackout is necessary.

(b) Notwithstanding any other law, a customer may not refuse installation and connection of an advanced meter under this section.

Sec. 38.152. ADVANCED METERING EQUIPMENT AND SOFTWARE. (a) A transmission and distribution utility, municipally owned utility, or electric cooperative shall develop or acquire the equipment and software necessary to shut off a customer's power in the event of a rolling blackout by using an advanced meter installed and connected under Section 38.151.

(b) A utility or cooperative shall make software described by Subsection (a) available to:

(1) a county or municipal government, for the purpose of identifying critical load public safety customers; and

(2) a retail electric provider, for the purpose of providing the utility or cooperative with a preferential order for customer curtailment.

Sec. 38.153. UPGRADES TO DISTRIBUTION SYSTEM. (a) Each transmission and distribution utility, municipally owned utility, or electric cooperative shall make upgrades to the distribution system operated by the utility or cooperative for the purpose of more evenly distributing a rolling blackout.

(b) Upgrades made under Subsection (a) may include the installation of additional under-frequency relays or energy storage systems, if permitted.

(c) Each transmission and distribution utility, municipally owned utility, or electric cooperative shall install under-frequency relays throughout the distribution system operated by the utility or cooperative and rotate which relays are active every year.

Sec. 38.154. COST RECOVERY. A transmission and distribution utility, municipally owned utility, or electric cooperative may recover reasonable and necessary costs incurred in deploying advanced meters under Section 38.151, developing or acquiring equipment and software under Section 38.152, or making upgrades to the distribution system operated by the utility or cooperative under Section 38.153.

Sec. 38.155. ROLLING BLACKOUT PLAN. (a) Each utility or cooperative shall make a plan for using advanced metering technology, software, equipment, and other upgrades to a distribution system authorized by this subchapter to deploy a rolling blackout.

(b) A plan developed under Subsection (a) may include use of both advanced metering technology and distribution feeders.

Sec. 38.156. CRITICAL LOAD DESIGNATION. (a) A critical load public safety customer, as defined by commission rules, includes the following:

(1) long-term care facilities;

(2) food pantries;

(3) homeless shelters

(4) temporary shelters identified by the county government; and

(5) critical telecommunications facilities.

(b) The commission shall allow a county to designate a critical load public safety customer.

(c) A transmission and distribution utility, municipally owned utility, or electric cooperative shall identify customers in the utility's or cooperative's service area who qualify as critical load public safety customers under commission rules and are not designated as critical load public safety customers.

(d) A utility or cooperative shall notify the following entities of any critical load public safety customers identified under Subsection (c):

(1) the commission;

(2) the independent system operator certified under Section 39.151 for the ERCOT power region, if applicable; and

(3) a county or municipality where the customer resides.

SECTION 2. (a) In this section, the term "transmission and distribution utility" has the meaning assigned by Section 31.002, Utilities Code.

(b) Not later than September 1, 2022, the Public Utility Commission of Texas shall identify the best methods for implementing Subchapter F, Chapter 38, Utilities Code, as added by this Act, and adopt rules as necessary to reflect those methods and implement the subchapter.

(c) A transmission and distribution utility, municipally owned utility, or electric cooperative shall implement Sections 38.152, 38.153, 38.155, and 38.156, Utilities Code, as added by this Act, not later than September 1, 2025, if the utility or cooperative has installed and connected an advanced meter for each customer before September 1, 2022, that:

(1) is capable of allowing the utility or cooperative to shut off the customer's power when a rolling blackout is necessary; and

(2) meets standards established by commission rules adopted under Subsection (b) of this section.

(d) A transmission and distribution utility, municipally owned utility, or electric cooperative shall implement Sections 38.152, 38.153, 38.155, and 38.156, Utilities Code, as added by this Act, not later than September 1, 2026, if the utility or cooperative has not installed and connected an advanced meter for each customer before September 1, 2022, that:

(1) is capable of allowing the utility or cooperative to shut off the customer's power when a rolling blackout is necessary; and

(2) meets standards established by commission rules adopted under Subsection (b) of this section.

(e) The Public Utility Commission of Texas may extend the deadlines under Subsections (c) and (d) of this section by not more than one year, on a case-by-case basis.

SECTION 3. This Act takes effect September 1, 2021.