85R8892 JXC-D
By: Oliveira H.B. No. 1665
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of cross-border electric generating
facilities.
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. SWITCHABLE ELECTRIC GENERATING FACILITIES FOR
CROSS-BORDER DISPATCH. (a) In this section:
(1) "Load shedding condition" means a temporary
condition on a power grid that requires or may require the
interruption of firm load.
(2) "Mexican power grid" means the electric power grid
in the northeast region of the United Mexican States.
(b) The commission shall adopt rules to encourage the
development of switchable electric generating facilities that:
(1) are located in this state; and
(2) consist of multiple electric generating units each
of which:
(A) can dispatch into only a single grid at any
given time but is capable of synchronizing with and dispatching
into the ERCOT power grid and the Mexican power grid at different
times; and
(B) may be called on by ERCOT to address a load
shedding condition.
(c) The rules must allow and encourage the adoption of a
binding coordination agreement by the operators of ERCOT and the
Mexican power grid to govern the dispatching of energy into the
ERCOT power grid and the Mexican power grid from a switchable
electric generating facility described by Subsection (b).
(d) For an agreement described by Subsection (c) that
requires that a new switchable electric generating facility have a
nameplate output at least 35 percent of which is from electric
generating units that, under the agreement, are committed to serve
the ERCOT power grid to the exclusion of the Mexican power grid
during an ERCOT load shedding condition, regardless of whether a
load shedding condition exists on the Mexican power grid, the rules
must:
(1) provide reasonable assurance that access to an
electric generating unit cannot be denied to the operator of the
Mexican power grid when the unit is called on by the operator,
regardless of whether a load shedding condition exists on the ERCOT
power grid, if the unit is not committed under the agreement to
serve the ERCOT power grid during a load shedding condition on the
ERCOT power grid; and
(2) establish a process for the commission to evaluate
an agreement described by Subsection (c) to determine whether the
agreement qualifies for the protections described by this
subsection.
SECTION 2. The Public Utility Commission of Texas shall
adopt rules as are necessary to implement Section 39.159, Utilities
Code, as added by this Act, not later than March 1, 2018.
SECTION 3. This Act takes effect September 1, 2017.