87R10952 JXC-F
By: Vasut H.B. No. 4502
A BILL TO BE ENTITLED
AN ACT
relating to cost recovery for costs arising from the
interconnection of certain electric generation facilities with the
ERCOT transmission system.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 35.004, Utilities Code, is amended by
amending Subsection (d) and adding Subsection (d-1) to read as
follows:
(d) The commission shall price wholesale transmission
services within ERCOT based on the postage stamp method of pricing
under which a transmission-owning utility's rate is based on the
ERCOT utilities' combined annual costs of transmission, other than
costs described in Subsection (d-1), divided by the total demand
placed on the combined transmission systems of all such
transmission-owning utilities within a power region. An electric
utility subject to the freeze period imposed by Section 39.052 may
treat transmission costs in excess of transmission revenues during
the freeze period as an expense for purposes of determining annual
costs in the annual report filed under Section 39.257.
Notwithstanding Section 36.201, the commission may approve
wholesale rates that may be periodically adjusted to ensure timely
recovery of transmission investment. Notwithstanding Section
36.054(a), if the commission determines that conditions warrant the
action, the commission may authorize the inclusion of construction
work in progress in the rate base for transmission investment
required by the commission under Section 39.203(e).
(d-1) Capital costs incurred to interconnect with the ERCOT
transmission system generation resources and electric energy
storage resources described by Section 35.152(a), including costs
of utility interconnection facilities and all necessary system
upgrades, must be directly assigned by the ERCOT independent system
operator to the generation resource or electric energy storage
resource receiving interconnection service through the facilities.
SECTION 2. This Act takes effect September 1, 2021.