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A BILL TO BE ENTITLED
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AN ACT
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relating to the responsibility for ancillary services costs |
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incurred for the operation of intermittent generation resources. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 35.004(e), Utilities Code, is amended to |
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read as follows: |
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(e) The commission shall ensure that ancillary services |
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necessary to facilitate the transmission of electric energy are |
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available at reasonable prices with terms and conditions that are |
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not unreasonably preferential, prejudicial, discriminatory, |
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predatory, or anticompetitive. The commission shall require, |
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consistent with cost-causation principles, intermittent generation |
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resources in the ERCOT power region to purchase ancillary services |
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and replacement power sufficient to manage net load variability. |
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In this subsection, "ancillary services" means services necessary |
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to facilitate the transmission of electric energy including load |
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following, standby power, backup power, reactive power, and any |
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other services as the commission may determine by rule. On the |
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introduction of customer choice in the ERCOT power region, |
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acquisition of generation-related ancillary services on a |
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nondiscriminatory basis by the independent organization in ERCOT on |
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behalf of entities selling electricity at retail shall be deemed to |
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meet the requirements of this subsection. |
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SECTION 2. The Public Utility Commission of Texas shall |
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adopt any rules required to implement Section 35.004(e), Utilities |
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Code, as amended by this Act, not later than January 1, 2022. The |
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commission shall ensure that the rules do not unreasonably impede |
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or impair performance under contracts entered into before the |
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effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |