85R21958 JXC-D
By: Oliveira H.B. No. 1665
Substitute the following for H.B. No. 1665:
By: Geren C.S.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) "Critical load condition" means a temporary
condition on a power grid that requires or may require the
interruption of firm load.
(2) "Mexican power grid" means an electric power grid
in the United Mexican States that is adjacent to the ERCOT power
grid.
(3) "Switchable electric generating facility" means
an electric generating facility that consists of one or more units
that:
(A) are capable of synchronizing with and
dispatching into the ERCOT power grid or the Mexican power grid at
different times; and
(B) can each dispatch into only the ERCOT power
grid or the Mexican power grid at any given time.
(b) Subject to Subsection (c), the commission shall approve
a binding coordination agreement made between the operators of the
ERCOT power grid and the Mexican power grid that governs the
dispatching of energy into the ERCOT power grid and the Mexican
power grid from a new switchable electric generating facility that
is capable of making all generating units available to serve the
ERCOT power grid during an emergency and that is commissioned after
September 1, 2017, if the agreement complies with the requirements
of this section.
(c) The commission may impose reasonable conditions on a
binding coordination agreement to protect the public interest.
(d) The commission shall approve a binding coordination
agreement filed with the commission that complies with the
requirements of this section not later than the 185th day after the
date the agreement is filed.
(e) A binding coordination agreement must:
(1) require that at least 35 percent of the switchable
electric generating facility be committed to serve the ERCOT power
grid to the exclusion of the Mexican power grid during an ERCOT
critical load condition, regardless of conditions on the Mexican
power grid;
(2) provide reasonable assurance that the remaining
nameplate capacity of the switchable electric generating facility
cannot be denied to the operator of the Mexican power grid when the
facility is called on by the operator of the Mexican power grid,
regardless of whether an ERCOT critical load condition exists on
the ERCOT power grid, unless the remaining capacity:
(A) has been offered to the ERCOT power grid and
is selected by the operator of the ERCOT power grid to provide
ancillary services in accordance with Section 35.004(e); or
(B) is otherwise expressly contractually
committed to the operator of the ERCOT power grid; and
(3) provide that the owner of the switchable electric
generating facility is responsible for any penalties imposed on the
operator of the ERCOT power grid by the commission, the Texas
Reliability Entity, the Federal Energy Regulatory Commission, or
the North American Electric Reliability Corporation for any action
taken by the operator of the ERCOT power grid in accordance with
Subdivision (2) if the entity imposing the penalty determines that
a wrongful action of the switchable electric generating facility
caused the violation for which the penalty is imposed.
(f) A binding coordination agreement may limit the
provision of service from a unit to the ERCOT power grid during an
emergency.
SECTION 2. This Act takes effect September 1, 2017.