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A BILL TO BE ENTITLED
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AN ACT
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relating to reliability requirements for certain electric |
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generation facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 39.1592(a) and (d), Utilities Code, are |
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amended to read as follows: |
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(a) This section applies only to an electric generation |
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facility in the ERCOT power region that is subject to [for which] a |
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standard generator interconnection agreement, [is signed on or |
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after January 1, 2027, that] has been in operation for at least one |
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year, and [that] is not a self-generator. |
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(d) The independent organization certified under Section |
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39.151 for the ERCOT power region may not impose penalties under |
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Subsection (c): |
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(1) for resource unavailability due to planned |
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maintenance outages or transmission outages; |
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(2) on resources that are already subject to |
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performance obligations during the highest reliability risk hours |
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under the day-ahead market rules or other ancillary or reliability |
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services established by the commission or the independent |
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organization; [or] |
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(3) during hours outside a baseline established by the |
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commission that includes morning and evening ramping periods; |
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(4) on resources that demonstrate the ability to |
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operate when called upon for dispatch for 24 continuous hours at or |
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above the seasonal average generation capability through the |
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resource's own generation capability or through a contract with an |
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on-site or off-site resource, including a battery energy storage |
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resource; or |
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(5) on resources with dual but separate grid |
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interconnections that provide dispatchable generation to the ERCOT |
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power region. |
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SECTION 2. Sections 52(b) and (c), Chapter 410 (H.B. 1500), |
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Acts of the 88th Legislature, Regular Session, 2023, are repealed. |
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SECTION 3. (a) The Public Utility Commission of Texas shall |
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adopt rules as necessary to implement Section 39.1592, Utilities |
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Code, as amended by this Act, not later than January 1, 2027. |
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(b) Notwithstanding Subsection (a) of this section, an |
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owner or operator of an electric generation facility that is |
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subject to a power purchase agreement entered into before the |
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effective date of this Act is not required to comply with the |
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performance requirements described by Section 39.1592(b), |
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Utilities Code, until the expiration of the agreement as it exists |
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on the effective date of this Act. |
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SECTION 4. (a) The Public Utility Commission of Texas shall |
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consider the use of a settlement price cap, a fixed reliability fee, |
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and other methods of imposing penalties under Section |
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39.1592(c)(1), Utilities Code. The Public Utility Commission of |
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Texas and the independent organization certified under Section |
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39.151, Utilities Code, for the ERCOT power region shall: |
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(1) consider rebating penalties collected under |
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Section 39.1592 directly to consumers or redirecting a portion of |
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the collected penalties toward reliability incentives; and |
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(2) for the purposes of Subdivision (1) of this |
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subsection, prioritize rebates of penalties or redirection of |
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penalties in a manner the commission determines will provide the |
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maximum financial benefit to consumers while still ensuring that |
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the reliability needs of the ERCOT power region are met and |
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premature retirements of dispatchable generation facilities are |
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avoided. |
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(b) Notwithstanding Section 39.1592(c), Utilities Code, the |
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Public Utility Commission of Texas may allow the financial |
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penalties and incentives required by that subsection to be adopted |
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in a phased manner over multiple years to mitigate market |
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disruptions that the commission determines would result in net |
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increased costs to consumers. |
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SECTION 5. This Act takes effect September 1, 2025. |