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A BILL TO BE ENTITLED
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AN ACT
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relating to the interconnection of the ERCOT power grid to grids |
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outside the ERCOT power region. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.002(5), Utilities Code, is amended to |
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read as follows: |
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(5) "Electric Reliability Council of Texas" or "ERCOT" |
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means: |
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(A) the area in Texas served by electric |
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utilities, municipally owned utilities, and electric cooperatives |
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that is not synchronously interconnected with electric utilities |
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outside the state; or |
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(B) if the commission approves a synchronous |
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interconnection under Chapter 39A, an area designated by the |
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commission by rule as necessary to administer this subtitle. |
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SECTION 2. Subtitle B, Title 2, Utilities Code, is amended |
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by adding Chapter 39A to read as follows: |
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CHAPTER 39A. INTERCONNECTION OF FACILITIES IN ERCOT TO GRIDS |
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OUTSIDE ERCOT POWER REGION |
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Sec. 39A.0101. UTILITY AND COOPERATIVE AUTHORITY. |
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Notwithstanding any other law, a transmission and distribution |
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utility, municipally owned utility, or electric cooperative that |
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transmits or distributes power purchased at wholesale in the ERCOT |
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power region may construct, own, and operate facilities as |
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necessary to: |
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(1) interconnect transmission facilities inside the |
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ERCOT power region to transmission facilities outside of the ERCOT |
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power region; and |
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(2) purchase power at wholesale from outside of the |
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ERCOT power region. |
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Sec. 39A.0102. SALE AUTHORITY. Notwithstanding any other |
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law, an electric utility, electric cooperative, municipally owned |
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utility, or power generation company operating in this state may |
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sell electric energy at wholesale for retail sale inside or outside |
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the ERCOT power region for the purposes of this chapter. |
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Sec. 39A.0103. COMMISSION AUTHORITY. (a) The commission |
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may request any federal approval necessary for the synchronous or |
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nonsynchronous interconnection of a facility described by Section |
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39A.0101. |
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(b) The commission may require the independent organization |
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certified for the ERCOT power region under Section 39.151 to |
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approve the synchronous or nonsynchronous interconnection of a |
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facility described by Section 39A.0101 unless otherwise provided by |
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federal law or the commission or the independent organization |
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determines that the interconnection poses a significant and |
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imminent risk to public health and safety. |
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(c) The commission may provide technical and administrative |
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assistance to a transmission and distribution utility, municipally |
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owned utility, or electric cooperative seeking to construct, own, |
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or operate a facility described by Section 39A.0101. |
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(d) The commission shall implement, and shall provide to the |
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Federal Energy Regulatory Commission, the Electric Reliability |
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Organization as defined by 16 U.S.C. Section 824o, and the |
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independent organization certified under Section 39.151 for the |
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ERCOT power region any assistance necessary to implement, a |
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reliability standard for the purposes of this chapter that requires |
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minimum total transfer capabilities between the ERCOT power region |
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and other regions as follows: |
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(1) 4.3 gigawatts between the area under functional |
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control of the independent organization and the area under |
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functional control of the Southwest Power Pool; |
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(2) 2.5 gigawatts between the area under functional |
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control of the independent organization and the area under |
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functional control of Midcontinent Independent System Operator; |
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and |
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(3) 2.6 gigawatts between the area under functional |
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control of the independent organization and the Western |
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Interconnection. |
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(e) The commission shall designate one or more entities |
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described by Section 39A.0101 to site and construct new |
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transmission facilities or modify existing transmission facilities |
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to achieve the minimum total transfer capabilities described by |
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Subsection (d) or delegate authority to the independent |
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organization certified under Section 39.151 for the ERCOT power |
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region to designate the entities. |
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(f) Notwithstanding any other law, the commission may |
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require an entity designated under Subsection (e) to make requests, |
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obtain approvals, enter into contracts, and construct or modify |
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facilities as necessary to interconnect a transmission facility |
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with a facility outside of ERCOT. |
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SECTION 3. Sections 37.051(c-1), (c-2), and (c-3), |
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Utilities Code, are redesignated as Section 39A.0104, Utilities |
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Code, and amended to read as follows: |
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Sec. 39A.0104. CERTIFICATES OF CONVENIENCE AND NECESSITY. |
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(a) A transmission and distribution utility, [(c-1) |
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Notwithstanding any other provision of this title except Section |
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11.009, and except as provided by Subsection (c-2), a person, |
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including an electric utility or] municipally owned utility, or |
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electric cooperative may not interconnect a facility to the ERCOT |
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transmission grid that enables additional power to be imported into |
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or exported out of the ERCOT power grid unless the utility or |
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cooperative [person] obtains a certificate from the commission in |
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the manner provided by Chapter 37 and this chapter stating that the |
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interconnection does not pose a significant and imminent risk to |
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public health and safety [public convenience and necessity requires |
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or will require the interconnection]. |
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(b) In the case of a conflict between Chapter 37 and this |
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chapter, this chapter prevails. |
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(c) Sections 37.056(c)(1) and (2) and (d) do not apply to an |
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application for a certificate described by Subsection (a). |
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(d) The commission may approve an application for a |
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certificate described by Subsection (a) unless otherwise provided |
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by federal law or the commission determines that granting the |
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application poses a significant and imminent risk to public health |
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and safety. |
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(e) The transmission and distribution utility, municipally |
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owned utility, or electric cooperative [person] must apply to the |
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commission for a [the] certificate described by Subsection (a) not |
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later than the 180th day before the date the utility or cooperative |
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[person] seeks any order from the Federal Energy Regulatory |
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Commission related to the interconnection. |
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(f) [The commission shall apply Section 37.056 in |
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considering an application under this subsection. In addition, the |
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commission must determine that the application is consistent with |
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the public interest before granting the certificate. The commission |
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may adopt rules necessary to implement this subsection. This |
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subsection does not apply to a facility that is in service on |
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December 31, 2014. |
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[(c-2)] The commission, not later than the 185th day after |
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the date the application is filed, shall approve an application |
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[filed under Subsection (c-1)] for a facility that is to be |
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constructed under an interconnection agreement appended to an offer |
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of settlement approved in a final order of the Federal Energy |
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Regulatory Commission that was issued in Docket No. TX11-01-001 on |
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or before December 31, 2014, directing physical connection between |
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the ERCOT and SERC regions under Sections 210, 211, and 212 of the |
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Federal Power Act (16 U.S.C. Sections 824i, 824j, and 824k). In |
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approving the application, the commission may prescribe reasonable |
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conditions to protect the public interest that are consistent with |
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the final order of the Federal Energy Regulatory Commission. |
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(g) [(c-3)] Nothing in this section [Subsection (c-1) or |
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(c-2)] is intended to restrict the authority of the commission or |
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the independent organization certified under Section 39.151 for the |
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ERCOT power region to adopt rules or protocols of general |
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applicability. |
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SECTION 4. This Act takes effect September 1, 2025. |