| 1 | 1 | | 84R2489 JXC-F |
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| 2 | 2 | | By: Keffer H.B. No. 2561 |
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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 allocation of congestion rents in the ERCOT |
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| 8 | 8 | | wholesale market. |
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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. Subchapter D, Chapter 39, Utilities Code, is |
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| 11 | 11 | | amended by adding Section 39.159 to read as follows: |
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| 12 | 12 | | Sec. 39.159. CONGESTION RENT IN ERCOT WHOLESALE MARKET. |
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| 13 | 13 | | (a) In this section, "congestion rent" means a pricing element that |
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| 14 | 14 | | is: |
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| 15 | 15 | | (1) added to the average market price of a generation |
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| 16 | 16 | | product; and |
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| 17 | 17 | | (2) based on the flow of power between two discrete |
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| 18 | 18 | | locations. |
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| 19 | 19 | | (b) The commission by rule shall establish a system to |
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| 20 | 20 | | annually prioritize and allocate congestion rents accrued on the |
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| 21 | 21 | | grid in the ERCOT wholesale market to transmission and distribution |
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| 22 | 22 | | utilities for congestion relief projects. |
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| 23 | 23 | | (c) A power generation company may not receive congestion |
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| 24 | 24 | | rent accrued on the grid in the ERCOT wholesale market. |
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| 25 | 25 | | (d) The rules must: |
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| 26 | 26 | | (1) establish a process for a transmission and |
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| 27 | 27 | | distribution utility to submit to the independent organization |
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| 28 | 28 | | certified under Section 39.151 for ERCOT an application to receive |
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| 29 | 29 | | congestion rent to offset the cost of a proposed congestion relief |
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| 30 | 30 | | project and for the staff of the organization to evaluate the |
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| 31 | 31 | | applications; |
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| 32 | 32 | | (2) establish criteria for congestion relief projects |
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| 33 | 33 | | for which a transmission and distribution utility is eligible to |
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| 34 | 34 | | receive congestion rent; |
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| 35 | 35 | | (3) require collected congestion rents to be remitted |
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| 36 | 36 | | to the independent organization certified under Section 39.151 for |
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| 37 | 37 | | ERCOT to be held by the organization in escrow, by zone, in separate |
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| 38 | 38 | | accounts according to zone; |
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| 39 | 39 | | (4) establish a system for the commission to |
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| 40 | 40 | | prioritize and allocate congestion rents for congestion relief |
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| 41 | 41 | | projects; and |
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| 42 | 42 | | (5) prohibit a transmission and distribution utility |
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| 43 | 43 | | from recovering through allocated congestion rent a capital |
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| 44 | 44 | | expenditure the utility has already recovered through its rates. |
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| 45 | 45 | | SECTION 2. Not later than January 1, 2016, the Public |
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| 46 | 46 | | Utility Commission of Texas shall adopt rules as necessary to |
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| 47 | 47 | | implement Section 39.159, Utilities Code, as added by this Act. |
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| 48 | 48 | | SECTION 3. This Act takes effect September 1, 2015. |
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