| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the implementation of a program to meet the reliability |
|
|
needs in the ERCOT power region. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter D, Chapter 39, Utilities Code, is |
|
|
amended by adding Section 39.1595 to read as follows: |
|
|
Sec. 39.166. RELIABILITY PROGRAM. (a) The commission may |
|
|
not implement a reliability program for the ERCOT power region that |
|
|
provides for the purchase of credits earned by generators based on |
|
|
generator availability during times of high demand and low supply |
|
|
at a centrally determined clearing price until an updated |
|
|
assessment on the cost to and impact on the ERCOT market of the |
|
|
proposed program is conducted by both the independent organization |
|
|
certified under Section 39.151 for the ERCOT power region and the |
|
|
independent market monitor. The assessment must include: |
|
|
(1) an evaluation of the cost of new entry and the |
|
|
impact on consumer costs and the competitive retail market; |
|
|
(2) compilation of detailed information regarding |
|
|
cost offsets realized through a reduction in ancillary services; |
|
|
and |
|
|
(3) development of a set of metrics to measure the |
|
|
impact of the program on system reliability. |
|
|
(b) The reliability program described in Subsection (a) |
|
|
implemented by the commission must provide that: |
|
|
(1) credits are centrally cleared to avoid market |
|
|
manipulation by affiliated generation and retail companies; |
|
|
(2) participation in the program is limited to |
|
|
dispatchable resources with the specific attributes necessary to |
|
|
meet operational needs of the ERCOT power region; |
|
|
(3) qualifying generators receive performance credits |
|
|
not to exceed the amount of generation bid into the forward market |
|
|
on an individual basis; |
|
|
(4) generating units receive performance credits only |
|
|
for providing power during the tightest hours as defined by the |
|
|
commission; |
|
|
(5) a penalty structure exists for generators that bid |
|
|
into the forward market but do not meet their full obligation, |
|
|
without exception, that results in a net benefit to load; |
|
|
(6) the independent market monitor has the authority |
|
|
and necessary resources to investigate potential instances of |
|
|
market manipulation, including financial and physical actions, and |
|
|
recommend penalties to the commission; and |
|
|
(7) the program is subject to an independent review to |
|
|
determine the benefits of its continuation that must be completed |
|
|
by January 1, 2029. |
|
|
(c) This section expires September 1, 2029. |
|
|
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 September 1, 2023. |