| 15 | | - | Sec. 39.159. ELIMINATING EFFECTS OF CERTAIN FEDERAL TAX |
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| 16 | | - | CREDITS. (a) The commission and the ERCOT independent system |
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| 17 | | - | operator shall study potential rules, operating procedures, and |
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| 18 | | - | protocols to eliminate or compensate for any distortion in |
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| 19 | | - | electricity pricing in the ERCOT power region caused by a federal |
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| 20 | | - | tax credit provided under 26 U.S.C. Section 45. The commission |
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| 21 | | - | shall request comments from interested parties as part of the |
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| 22 | | - | study. |
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| 23 | | - | (b) The scope of the study under this section must include |
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| 24 | | - | peak price formation, negative pricing, ancillary services, |
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| 25 | | - | congestion, reserve margins, and transmission and distribution |
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| 26 | | - | costs. |
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| 27 | | - | (c) The commission shall include the results of the study in |
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| 28 | | - | the report required by Section 31.003 to be submitted to the |
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| 29 | | - | legislature before January 15, 2021. |
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| 30 | | - | (d) This section expires September 1, 2021. |
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| 13 | + | Sec. 39.159. MARKET DISTORTION RESPONSE. (a) The |
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| 14 | + | commission and the ERCOT independent system operator shall adopt |
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| 15 | + | rules, operating procedures, and protocols to eliminate or |
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| 16 | + | compensate for any distortion in electricity pricing in the ERCOT |
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| 17 | + | power region caused by a federal tax credit provided under 26 U.S.C. |
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| 18 | + | Section 45. |
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| 19 | + | (b) Rules, operating procedures, and protocols adopted |
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| 20 | + | under this section must ensure that costs imposed on the system by |
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| 21 | + | the sale of electricity that is eligible for a federal tax credit |
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| 22 | + | provided under 26 U.S.C. Section 45, including costs of maintaining |
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| 23 | + | sufficient capacity to serve load at the summer peak demand caused |
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| 24 | + | by the loss of new investment from below-market prices, are paid by |
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| 25 | + | the parties that impose the costs. |
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| 26 | + | (c) In conjunction with adopting rules, operating |
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| 27 | + | procedures, and protocols under this section, the commission and |
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| 28 | + | the ERCOT independent system operator shall eliminate any rules, |
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| 29 | + | operating procedures, or protocols that attempt to adjust |
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| 30 | + | electricity prices to reflect the value of reserves at different |
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| 31 | + | reserve levels based on the probability of reserves falling below |
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| 32 | + | the minimum contingency level and the value of lost load. |
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