| 1 | 1 | | 81R9097 TRH-F |
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| 2 | 2 | | By: Keffer H.B. No. 2781 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the development and implementation of a wholesale |
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| 8 | 8 | | market structure for ERCOT. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 39.151, Utilities Code, is amended by |
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| 11 | 11 | | adding Subsections (n), (o), and (p) to read as follows: |
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| 12 | 12 | | (n) In developing or implementing a wholesale market |
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| 13 | 13 | | structure, an independent organization that is certified under this |
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| 14 | 14 | | section may not: |
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| 15 | 15 | | (1) directly assign a congestion rent to a buyer or |
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| 16 | 16 | | seller of generation output; or |
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| 17 | 17 | | (2) base a generation payment on locational marginal |
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| 18 | 18 | | pricing. |
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| 19 | 19 | | (o) An independent organization that is certified under |
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| 20 | 20 | | this section shall establish zonal markets used to determine the |
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| 21 | 21 | | market price of a generation product that are sufficient in size to |
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| 22 | 22 | | produce effective competition among generation resources. |
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| 23 | 23 | | (p) In this section: |
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| 24 | 24 | | (1) "Congestion rent" means a pricing element that is: |
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| 25 | 25 | | (A) added to the average market price of a |
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| 26 | 26 | | generation product; and |
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| 27 | 27 | | (B) based on the flow of power between two |
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| 28 | 28 | | discrete locations. |
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| 29 | 29 | | (2) "Locational marginal pricing" means the |
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| 30 | 30 | | calculation of marginal power prices that correspond to individual |
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| 31 | 31 | | nodes or locations on the power grids. |
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| 32 | 32 | | SECTION 2. This Act takes effect immediately if it receives |
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| 33 | 33 | | a vote of two-thirds of all the members elected to each house, as |
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| 34 | 34 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 35 | 35 | | Act does not receive the vote necessary for immediate effect, this |
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| 36 | 36 | | Act takes effect September 1, 2009. |
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