Texas 2017 - 85th Regular

Texas House Bill HB1665 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	85R21958 JXC-D
2	2	By: Oliveira H.B. No. 1665
3	3	Substitute the following for H.B. No. 1665:
4	4	By: Geren C.S.H.B. No. 1665
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the regulation of cross-border electric generating
10	10	facilities.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter D, Chapter 39, Utilities Code, is
13	13	amended by adding Section 39.159 to read as follows:
14	14	Sec. 39.159. SWITCHABLE ELECTRIC GENERATING FACILITIES FOR
15	15	CROSS-BORDER DISPATCH. (a) In this section:
16	16	(1) "Critical load condition" means a temporary
17	17	condition on a power grid that requires or may require the
18	18	interruption of firm load.
19	19	(2) "Mexican power grid" means an electric power grid
20	20	in the United Mexican States that is adjacent to the ERCOT power
21	21	grid.
22	22	(3) "Switchable electric generating facility" means
23	23	an electric generating facility that consists of one or more units
24	24	that:
25	25	(A) are capable of synchronizing with and
26	26	dispatching into the ERCOT power grid or the Mexican power grid at
27	27	different times; and
28	28	(B) can each dispatch into only the ERCOT power
29	29	grid or the Mexican power grid at any given time.
30	30	(b) Subject to Subsection (c), the commission shall approve
31	31	a binding coordination agreement made between the operators of the
32	32	ERCOT power grid and the Mexican power grid that governs the
33	33	dispatching of energy into the ERCOT power grid and the Mexican
34	34	power grid from a new switchable electric generating facility that
35	35	is capable of making all generating units available to serve the
36	36	ERCOT power grid during an emergency and that is commissioned after
37	37	September 1, 2017, if the agreement complies with the requirements
38	38	of this section.
39	39	(c) The commission may impose reasonable conditions on a
40	40	binding coordination agreement to protect the public interest.
41	41	(d) The commission shall approve a binding coordination
42	42	agreement filed with the commission that complies with the
43	43	requirements of this section not later than the 185th day after the
44	44	date the agreement is filed.
45	45	(e) A binding coordination agreement must:
46	46	(1) require that at least 35 percent of the switchable
47	47	electric generating facility be committed to serve the ERCOT power
48	48	grid to the exclusion of the Mexican power grid during an ERCOT
49	49	critical load condition, regardless of conditions on the Mexican
50	50	power grid;
51	51	(2) provide reasonable assurance that the remaining
52	52	nameplate capacity of the switchable electric generating facility
53	53	cannot be denied to the operator of the Mexican power grid when the
54	54	facility is called on by the operator of the Mexican power grid,
55	55	regardless of whether an ERCOT critical load condition exists on
56	56	the ERCOT power grid, unless the remaining capacity:
57	57	(A) has been offered to the ERCOT power grid and
58	58	is selected by the operator of the ERCOT power grid to provide
59	59	ancillary services in accordance with Section 35.004(e); or
60	60	(B) is otherwise expressly contractually
61	61	committed to the operator of the ERCOT power grid; and
62	62	(3) provide that the owner of the switchable electric
63	63	generating facility is responsible for any penalties imposed on the
64	64	operator of the ERCOT power grid by the commission, the Texas
65	65	Reliability Entity, the Federal Energy Regulatory Commission, or
66	66	the North American Electric Reliability Corporation for any action
67	67	taken by the operator of the ERCOT power grid in accordance with
68	68	Subdivision (2) if the entity imposing the penalty determines that
69	69	a wrongful action of the switchable electric generating facility
70	70	caused the violation for which the penalty is imposed.
71	71	(f) A binding coordination agreement may limit the
72	72	provision of service from a unit to the ERCOT power grid during an
73	73	emergency.
74	74	SECTION 2. This Act takes effect September 1, 2017.