Texas 2019 - 86th Regular

Texas Senate Bill SB1941 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R30217 BRG-F
2	1		By: Hancock S.B. No. 1941
3		-	(Holland)
4		-	Substitute the following for S.B. No. 1941: No.
5	2
6	3
7	4		A BILL TO BE ENTITLED
8	5		AN ACT
9	6		relating to use of electric energy storage facilities in the ERCOT
10	7		power region.
11	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	9		SECTION 1. Section 35.151, Utilities Code, is amended to
13	10		read as follows:
14	11		Sec. 35.151. ELECTRIC ENERGY STORAGE. This subchapter
15	12		applies only to the ownership or operation of electric energy
16	13		storage equipment or facilities in the ERCOT power region that are
17	14		intended to:
18	15		(1) provide energy or ancillary services at wholesale,
19	16		including electric energy storage equipment or facilities listed on
20	17		a power generation company's registration with the commission or,
21	18		for an exempt wholesale generator, on the generator's registration
22	19		with the Federal Energy Regulatory Commission; or
23	20		(2) provide reliable delivery of electric energy to
24		-	~~distribution~~ customers.
	21	+	retail customers.
25	22		SECTION 2. Subchapter E, Chapter 35, Utilities Code, is
26	23		amended by adding Section 35.153 to read as follows:
27	24		Sec. 35.153. CONTRACTS FOR ELECTRIC ENERGY STORAGE FOR
28	25		RELIABILITY SERVICES. (a) A transmission and distribution
29		-	utility, with ~~prior~~ approval of the commission, may contract with a
30		-	~~power generation company to provide~~ electric energy ~~from an~~
31		-	electric energy storage facility to ensure ~~reliable service to~~
32		-	~~distribution~~ customers.
	26	+	utility, with the approval of the commission, may contract with the
	27	+	owner or operator of an electric energy storage facility to provide
	28	+	electric energy from an electric energy storage facility to ensure
	29	+	reliable service to retail customers.
33	30		(b) The commission may not authorize ownership of an
34	31		electric energy storage facility by a transmission and distribution
35	32		utility.
36	33		(c) Before entering into a contract under Subsection (a),
37	34		the transmission and distribution utility must issue a request for
38	35		proposals for use of an electric energy storage facility to meet the
39	36		utility's reliability needs.
40	37		(d) A transmission and distribution utility may enter into a
41	38		contract under Subsection (a) only if use of an electric energy
42	39		storage facility is more cost-effective than construction or
43	40		modification of traditional distribution facilities.
44	41		(e) A transmission and distribution utility may not enter
45	42		into a contract under Subsection (a) that reserves an amount of
46	43		capacity exceeding the amount of capacity required to ensure
47		-	reliable service to the utility's distribution customers.
48		-	(f) A power generation company that owns or operates an
49		-	electric energy storage facility subject to a contract under
50		-	Subsection (a) may sell electric energy or ancillary services
51		-	through use of the facility only to the extent that the company
52		-	reserves capacity as required by the contract.
53		-	(g) A power generation company that owns or operates an
54		-	electric energy storage facility subject to a contract under
55		-	Subsection (a) may not discharge the facility to satisfy the
56		-	contract's requirements unless directed by the transmission and
57		-	distribution utility.
58		-	(h) A contract under Subsection (a) must require a power
59		-	generation company that owns or operates an electric energy storage
60		-	facility to reimburse a transmission and distribution utility for
61		-	the cost of an administrative penalty assessed against the utility
62		-	for a violation caused by the facility's failure to meet the
63		-	requirements of the agreement.
	44	+	reliable service to the utility's retail customers.
	45	+	(f) An owner or operator of an electric energy storage
	46	+	facility subject to a contract under Subsection (a) may sell
	47	+	electric energy or ancillary services through use of the facility
	48	+	only to the extent that the owner or operator reserves capacity as
	49	+	required by the contract.
	50	+	(g) An owner or operator of an electric energy storage
	51	+	facility subject to a contract under Subsection (a) may not
	52	+	discharge the facility for reliability purposes unless directed by
	53	+	the transmission and distribution utility.
	54	+	(h) A contract under Subsection (a) must require an owner or
	55	+	operator of an electric energy storage facility to reimburse a
	56	+	transportation and distribution utility for the cost of
	57	+	administrative penalties assessed against the utility for a
	58	+	violation caused by the facility's failure to meet the requirements
	59	+	of the agreement.
64	60		(i) In establishing the rates of a transmission and
65	61		distribution utility, a regulatory authority shall review a
66		-	contract between the utility and ~~a power generation company under~~
67		-	Subsection (a). The utility has the ~~burden of proof to establish~~
68		-	that the costs of the contract are ~~reasonable and necessary. The~~
69		-	regulatory authority may authorize a ~~transmission and distribution~~
70		-	utility to ~~include~~ a reasonable return ~~on the payments required~~
71		-	under the ~~contract only if the contract terms satisfy the relevant~~
72		-	~~accounting standards for a capital lease or finance lease~~.
	62	+	contract between the utility and an owner or operator of an electric
	63	+	energy storage facility under Subsection (a). The utility has the
	64	+	burden of proof to establish that the costs of the contract are
	65	+	reasonable and necessary. The regulatory authority may authorize a
	66	+	transmission and distribution utility to earn a reasonable return
	67	+	on the present value of future payments required under the
	68	+	contract.
73	69		(j) The total amount of electric energy storage capacity
74	70		reserved by contracts under Subsection (a) may not exceed 40
75	71		megawatts. The commission shall by rule establish the maximum
76	72		amount of electric energy storage capacity allotted to each
77	73		transmission and distribution utility.
78	74		(k) The commission shall adopt rules as necessary to
79	75		implement this section and establish criteria for approving
80	76		contracts under Subsection (a).
81	77		SECTION 3. The Public Utility Commission of Texas shall
82	78		adopt rules required by Section 35.153, Utilities Code, as added by
83	79		this Act, as soon as practicable after the effective date of this
84	80		Act.
85	81		SECTION 4. This Act takes effect September 1, 2019.