S.B. No. 943
AN ACT
relating to the classification, use, and regulation of electric
energy storage equipment or facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subdivision (10), Section 31.002, Utilities
Code, is amended to read as follows:
(10) "Power generation company" means a person that:
(A) generates electricity that is intended to be
sold at wholesale, including the owner or operator of electric
energy storage equipment or facilities to which Subchapter E,
Chapter 35, applies;
(B) does not own a transmission or distribution
facility in this state other than an essential interconnecting
facility, a facility not dedicated to public use, or a facility
otherwise excluded from the definition of "electric utility" under
this section; and
(C) does not have a certificated service area,
although its affiliated electric utility or transmission and
distribution utility may have a certificated service area.
SECTION 2. Chapter 35, Utilities Code, is amended by adding
Subchapter E to read as follows:
SUBCHAPTER E. ELECTRIC ENERGY STORAGE
Sec. 35.151. ELECTRIC ENERGY STORAGE. This subchapter
applies to electric energy storage equipment or facilities that are
intended to provide energy or ancillary services at wholesale,
including electric energy storage equipment or facilities listed on
a power generation company's registration with the commission or,
for an exempt wholesale generator, on the generator's registration
with the Federal Energy Regulatory Commission.
Sec. 35.152. GENERATION ASSETS. (a) Electric energy
storage equipment or facilities that are intended to be used to sell
energy or ancillary services at wholesale are generation assets.
(b) The owner or operator of electric energy storage
equipment or facilities that are generation assets under Subsection
(a) is a power generation company and is required to register under
Section 39.351(a). The owner or operator of the equipment or
facilities is entitled to:
(1) interconnect the equipment or facilities;
(2) obtain transmission service for the equipment or
facilities; and
(3) use the equipment or facilities to sell
electricity or ancillary services at wholesale in a manner
consistent with the provisions of this title and commission rules
applicable to a power generation company or an exempt wholesale
generator.
(c) Notwithstanding Subsection (a), this section does not
affect a determination made by the commission in a final order
issued before December 31, 2010.
SECTION 3. Subdivision (10), Section 31.002, Utilities
Code, as amended by this Act, and Subchapter E, Chapter 35,
Utilities Code, as added by this Act, may not be construed to
determine the regulatory treatment of electricity acquired to
charge electric energy storage equipment or facilities and used
solely for the purpose of later sale as energy or ancillary
services.
SECTION 4. (a) The Public Utility Commission of Texas
shall adopt or revise rules as necessary to implement this Act not
later than January 1, 2012.
(b) The Public Utility Commission of Texas shall ensure that
the Electric Reliability Council of Texas adopts or revises the
council's protocols, standards, and procedures to implement this
Act not later than April 1, 2012.
SECTION 5. This Act takes effect September 1, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 943 passed the Senate on
April 21, 2011, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 27, 2011, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 943 passed the House, with
amendment, on May 20, 2011, by the following vote: Yeas 149,
Nays 0, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor