2025S0155-1 02/28/25

By: Darby H.B. No. 3970

A BILL TO BE ENTITLED

AN ACT

relating to electricity planning for large loads.

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

SECTION 1. Subchapter D, Chapter 39, Utilities Code, is amended by adding Section 39.169 to read as follows:

Sec. 39.169. LARGE LOAD INTERCONNECTION; RELIABILITY PROGRAM. (a) In this section, "behind-the-meter generation" means a new generation facility on the retail customer's side of the meter.

(b) The commission by rule shall require the independent organization certified under Section 39.151 for the ERCOT power region to develop and implement an interconnection program to provide an expedited interconnection process for operators of large loads who agree to cease consuming energy from the power grid through deployment of their behind-the-meter generation when directed to by the independent organization. The program must be available only to large loads that are a facility at a single site with an aggregate peak power demand that exceeds a demand threshold established by the independent organization. The threshold must be at least 75 megawatts unless the independent organization determines that a lower threshold will better ensure reliability in the ERCOT power region.

(c) The program must require the independent organization certified under Section 39.151 for the ERCOT power region and the relevant electric cooperative, municipally owned utility, or transmission and distribution utility to give priority to a large load in the interconnection queue participating in the program.

(d) The program must provide that:

(1) an interconnection application for a participating large load with behind-the-meter generation that agrees to offer the energy generated by the behind-the-meter generation to the power grid at times directed by the independent organization or reduce its energy consumption from the power grid to a minimum level established by the independent organization will be given priority over other interconnection applications that are pending before the independent organization and the relevant electric cooperative, municipally owned utility, or transmission and distribution utility, including any applications from other participating large loads without behind-the-meter generation;

(2) if applicable, the generator interconnection application for a participating large load's behind-the-meter generation will be processed in parallel with the load interconnection application; and

(3) an applicant for participation in the program may choose:

(A) if authorized by the independent organization and the relevant electric cooperative, municipally owned utility, or transmission and distribution utility, to contract with a vendor approved by the relevant electric cooperative, municipally owned utility, or transmission and distribution utility or by the independent organization to perform all studies required by the relevant electric cooperative, municipally owned utility, or transmission and distribution utility before the approval of the interconnection application;

(B) to procure equipment required for the interconnection in accordance with technical specifications provided by the relevant electric cooperative, municipally owned utility, or transmission and distribution utility; and

(C) to construct interconnection facilities in accordance with technical and other requirements of the relevant electric cooperative, municipally owned utility, or transmission and distribution utility.

(e) The program shall provide that studies required by an electric cooperative, municipally owned utility, or transmission and distribution utility before the approval of an interconnection application for a participating large load may evaluate the load as non-firm.

SECTION 2. This Act takes effect September 1, 2025.