| 1 | 1 | | 87R8893 JXC-F |
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| 2 | 2 | | By: King of Parker H.B. No. 4466 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the responsibility for ancillary services costs |
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| 8 | 8 | | incurred for the operation of intermittent wind and solar |
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| 9 | 9 | | resources. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 35.004(e), Utilities Code, is amended to |
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| 12 | 12 | | read as follows: |
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| 13 | 13 | | (e) The commission shall ensure that ancillary services |
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| 14 | 14 | | necessary to facilitate the transmission of electric energy are |
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| 15 | 15 | | available at reasonable prices with terms and conditions that are |
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| 16 | 16 | | not unreasonably preferential, prejudicial, discriminatory, |
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| 17 | 17 | | predatory, or anticompetitive. Ancillary services costs incurred |
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| 18 | 18 | | by the ERCOT independent system operator to address reliability |
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| 19 | 19 | | issues arising from the operation of intermittent wind and solar |
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| 20 | 20 | | resources must be directly assigned by the ERCOT independent system |
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| 21 | 21 | | operator to those resources. In this subsection, "ancillary |
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| 22 | 22 | | services" means services necessary to facilitate the transmission |
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| 23 | 23 | | of electric energy including load following, standby power, backup |
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| 24 | 24 | | power, reactive power, and any other services as the commission may |
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| 25 | 25 | | determine by rule. On the introduction of customer choice in the |
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| 26 | 26 | | ERCOT power region, acquisition of generation-related ancillary |
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| 27 | 27 | | services on a nondiscriminatory basis by the independent |
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| 28 | 28 | | organization in ERCOT on behalf of entities selling electricity at |
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| 29 | 29 | | retail shall be deemed to meet the requirements of this subsection. |
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| 30 | 30 | | SECTION 2. The Public Utility Commission of Texas shall |
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| 31 | 31 | | adopt any rules required to implement Section 35.004(e), Utilities |
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| 32 | 32 | | Code, as amended by this Act, not later than January 1, 2022. |
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| 33 | 33 | | SECTION 3. This Act takes effect September 1, 2021. |
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