| 1 | 1 | | By: Paddie H.B. No. 4378 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the supply of power and the financial stability of the |
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| 7 | 7 | | competitive wholesale and retail electricity markets. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Chapter 39, Utilities Code, is amended by adding |
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| 10 | 10 | | Sections 39.1513 and 39.1514 to read as follows: |
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| 11 | 11 | | Sec. 39.1513 ADEQUACY OF SUPPLY IN THE WHOLESALE |
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| 12 | 12 | | ELECTRICITY MARKET (a) The commission shall adopt and enforce |
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| 13 | 13 | | rules to promote adequacy of generation supply. |
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| 14 | 14 | | (b) Rules adopted under subsection (a) shall require: |
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| 15 | 15 | | (1) appropriate price signals in the wholesale power |
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| 16 | 16 | | market; and |
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| 17 | 17 | | (2) seasonal or annual procurement of energy or |
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| 18 | 18 | | generation capacity. |
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| 19 | 19 | | (c) Rules adopted under this section regarding wholesale |
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| 20 | 20 | | power market price signals shall be designed to: |
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| 21 | 21 | | (1) moderate price volatility; and |
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| 22 | 22 | | (2) ensure revenues sufficient to encourage |
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| 23 | 23 | | construction and operation of dispatchable generation resources |
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| 24 | 24 | | necessary to ensure reliable power supply. |
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| 25 | 25 | | (d) The commission shall require the use of risk-weighted |
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| 26 | 26 | | analysis to determine the quantities to be procured under |
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| 27 | 27 | | subsection (b)(2). |
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| 28 | 28 | | (e) The commission shall ensure the costs of procuring |
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| 29 | 29 | | adequate generation supply under this section shall be equitably |
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| 30 | 30 | | apportioned to market participants. |
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| 31 | 31 | | Sec. 39.1514 FINANCIAL STABILITY OF WHOLESALE MARKET The |
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| 32 | 32 | | commission shall ensure that each participant in the wholesale |
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| 33 | 33 | | power market posts sufficient collateral or otherwise provides |
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| 34 | 34 | | sufficient assurance that it will meet its financial obligations |
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| 35 | 35 | | incurred in high and low customer demand conditions. |
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| 36 | 36 | | SECTION 2. This Act takes effect September 1, 2021. |
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