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A BILL TO BE ENTITLED
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AN ACT
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relating to the interconnection of large loads; providing an |
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administrative penalty. |
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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 39.169 to read as follows: |
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Sec. 39.169. LARGE LOAD INTERCONNECTION. (a) In this |
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section: |
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(1) "Behind-the-meter generation" means a new |
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generation facility on the retail customer's side of the meter |
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capable of serving the full load requirement of the retail |
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customer. |
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(2) "Flexible load" means a load operated by a retail |
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customer who is obligated by contract or agreement in the ERCOT |
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market to reduce the load or power the load exclusively with back-up |
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generation: |
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(A) at the direction of the independent |
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organization certified under Section 39.151 for the ERCOT power |
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region; or |
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(B) as required to protect the integrity of the |
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ERCOT grid. |
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(b) The commission by rule shall establish a program to |
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provide an expedited process for the interconnection of large |
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loads. The program must require the interconnecting electric |
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cooperative, municipally owned utility, or transmission and |
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distribution utility and the independent organization certified |
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under Section 39.151 for the ERCOT power region to give priority in |
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the interconnection queue to a large load for which a retail |
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customer has received approval for expedited processing over any |
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other large loads. If applicable, the generation interconnection |
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application for the large load's behind-the-meter generation must |
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be processed in parallel with the large load. |
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(c) The program must require a large load to qualify for |
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expedited interconnection processing by bringing in-service, not |
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later than the 180th day after the interconnection date, |
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behind-the-meter generation that is: |
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(1) registered with the independent organization |
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certified under Section 39.151 for the ERCOT power region; and |
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(2) capable of serving the full load requirement of |
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the customer. |
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(d) As an alternative to the requirements of Subsection (c), |
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a large load may qualify for expedited interconnection processing |
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if the load is a facility with an aggregated peak demand at a single |
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site of more than 75 megawatts by: |
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(1) providing to the interconnecting entity all data |
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regarding, and posting all required financial security for, the |
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load; and |
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(2) being subject to a contract or agreement with the |
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independent organization certified under Section 39.151 for the |
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ERCOT power region to establish the load as a flexible load for a |
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minimum period established by the commission, which must be at |
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least 10 years. |
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(e) A large load that qualifies for expedited |
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interconnection processing may choose: |
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(1) if authorized by the independent organization |
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certified under Section 39.151 for the ERCOT power region and the |
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relevant electric cooperative, municipally owned utility, or |
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transmission and distribution utility, to contract with a vendor |
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approved by the relevant electric cooperative, municipally owned |
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utility, or transmission and distribution utility or by the |
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independent organization to perform all studies required by the |
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relevant electric cooperative, municipally owned utility, or |
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transmission and distribution utility before the approval of the |
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interconnection application; and |
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(2) if authorized by the relevant electric |
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cooperative, municipally owned utility, or transmission and |
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distribution utility: |
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(A) to procure equipment required for the |
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interconnection in accordance with technical specifications |
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provided by the relevant electric cooperative, municipally owned |
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utility, or transmission and distribution utility; and |
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(B) to construct interconnection facilities in |
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accordance with technical and other requirements of the relevant |
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electric cooperative, municipally owned utility, or transmission |
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and distribution utility. |
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(f) The program may provide that studies required by an |
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electric cooperative, municipally owned utility, or transmission |
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and distribution utility before the approval of an interconnection |
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application for a flexible load may evaluate the load as non-firm. |
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(g) Demand reductions from flexible loads that receive |
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expedited processing and are removed from the system through the |
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utilization of behind-the-meter generation during an energy |
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emergency alert must be counted toward any obligation of the |
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electric cooperative, municipally owned utility, or transmission |
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and distribution utility to shed load. |
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(h) The commission shall impose an administrative penalty |
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on an owner or operator of a large load that is approved for |
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expedited interconnection processing but does not comply with the |
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requirements of this section. |
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SECTION 2. This Act takes effect September 1, 2025. |