84R2489 JXC-F
By: Keffer H.B. No. 2561
A BILL TO BE ENTITLED
AN ACT
relating to the allocation of congestion rents in the ERCOT
wholesale market.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 39, Utilities Code, is
amended by adding Section 39.159 to read as follows:
Sec. 39.159. CONGESTION RENT IN ERCOT WHOLESALE MARKET.
(a) In this section, "congestion rent" means a pricing element that
is:
(1) added to the average market price of a generation
product; and
(2) based on the flow of power between two discrete
locations.
(b) The commission by rule shall establish a system to
annually prioritize and allocate congestion rents accrued on the
grid in the ERCOT wholesale market to transmission and distribution
utilities for congestion relief projects.
(c) A power generation company may not receive congestion
rent accrued on the grid in the ERCOT wholesale market.
(d) The rules must:
(1) establish a process for a transmission and
distribution utility to submit to the independent organization
certified under Section 39.151 for ERCOT an application to receive
congestion rent to offset the cost of a proposed congestion relief
project and for the staff of the organization to evaluate the
applications;
(2) establish criteria for congestion relief projects
for which a transmission and distribution utility is eligible to
receive congestion rent;
(3) require collected congestion rents to be remitted
to the independent organization certified under Section 39.151 for
ERCOT to be held by the organization in escrow, by zone, in separate
accounts according to zone;
(4) establish a system for the commission to
prioritize and allocate congestion rents for congestion relief
projects; and
(5) prohibit a transmission and distribution utility
from recovering through allocated congestion rent a capital
expenditure the utility has already recovered through its rates.
SECTION 2. Not later than January 1, 2016, the Public
Utility Commission of Texas shall adopt rules as necessary to
implement Section 39.159, Utilities Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2015.