By: Paddie H.B. No. 4378
A BILL TO BE ENTITLED
AN ACT
relating to the supply of power and the financial stability of the
competitive wholesale and retail electricity markets.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 39, Utilities Code, is amended by adding
Sections 39.1513 and 39.1514 to read as follows:
Sec. 39.1513 ADEQUACY OF SUPPLY IN THE WHOLESALE
ELECTRICITY MARKET (a) The commission shall adopt and enforce
rules to promote adequacy of generation supply.
(b) Rules adopted under subsection (a) shall require:
(1) appropriate price signals in the wholesale power
market; and
(2) seasonal or annual procurement of energy or
generation capacity.
(c) Rules adopted under this section regarding wholesale
power market price signals shall be designed to:
(1) moderate price volatility; and
(2) ensure revenues sufficient to encourage
construction and operation of dispatchable generation resources
necessary to ensure reliable power supply.
(d) The commission shall require the use of risk-weighted
analysis to determine the quantities to be procured under
subsection (b)(2).
(e) The commission shall ensure the costs of procuring
adequate generation supply under this section shall be equitably
apportioned to market participants.
Sec. 39.1514 FINANCIAL STABILITY OF WHOLESALE MARKET The
commission shall ensure that each participant in the wholesale
power market posts sufficient collateral or otherwise provides
sufficient assurance that it will meet its financial obligations
incurred in high and low customer demand conditions.
SECTION 2. This Act takes effect September 1, 2021.