| 2 | + | (In the Senate - Filed March 9, 2021; March 18, 2021, read |
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| 3 | + | first time and referred to Committee on Business & Commerce; |
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| 4 | + | April 7, 2021, reported adversely, with favorable Committee |
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| 5 | + | Substitute by the following vote: Yeas 7, Nays 2; April 7, 2021, |
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| 6 | + | sent to printer.) |
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| 7 | + | Click here to see the committee vote |
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| 8 | + | COMMITTEE SUBSTITUTE FOR S.B. No. 1278 By: Hancock |
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| 2 | 9 | | |
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| 3 | 10 | | |
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| 4 | 11 | | A BILL TO BE ENTITLED |
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| 5 | 12 | | AN ACT |
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| 6 | 13 | | relating to the responsibility for ancillary services costs |
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| 7 | 14 | | incurred for the operation of intermittent generation resources. |
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| 8 | 15 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 16 | | SECTION 1. Section 35.004(e), Utilities Code, is amended to |
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| 10 | 17 | | read as follows: |
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| 11 | 18 | | (e) The commission shall ensure that ancillary services |
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| 12 | 19 | | necessary to facilitate the transmission of electric energy are |
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| 13 | 20 | | available at reasonable prices with terms and conditions that are |
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| 14 | 21 | | not unreasonably preferential, prejudicial, discriminatory, |
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| 15 | | - | predatory, or anticompetitive. The commission shall require, |
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| 16 | | - | consistent with cost-causation principles, intermittent generation |
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| 17 | | - | resources in the ERCOT power region to purchase ancillary services |
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| 18 | | - | and replacement power sufficient to manage net load variability. |
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| 19 | | - | In this subsection, "ancillary services" means services necessary |
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| 20 | | - | to facilitate the transmission of electric energy including load |
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| 21 | | - | following, standby power, backup power, reactive power, and any |
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| 22 | | - | other services as the commission may determine by rule. On the |
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| 23 | | - | introduction of customer choice in the ERCOT power region, |
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| 24 | | - | acquisition of generation-related ancillary services on a |
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| 25 | | - | nondiscriminatory basis by the independent organization in ERCOT on |
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| 26 | | - | behalf of entities selling electricity at retail shall be deemed to |
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| 27 | | - | meet the requirements of this subsection. |
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| 22 | + | predatory, or anticompetitive. The commission shall require |
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| 23 | + | intermittent generation resources in the ERCOT power region to |
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| 24 | + | purchase ancillary services and replacement power sufficient to |
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| 25 | + | manage net load variability. In this subsection, "ancillary |
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| 26 | + | services" means services necessary to facilitate the transmission |
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| 27 | + | of electric energy including load following, standby power, backup |
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| 28 | + | power, reactive power, and any other services as the commission may |
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| 29 | + | determine by rule. On the introduction of customer choice in the |
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| 30 | + | ERCOT power region, acquisition of generation-related ancillary |
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| 31 | + | services on a nondiscriminatory basis by the independent |
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| 32 | + | organization in ERCOT on behalf of entities selling electricity at |
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| 33 | + | retail shall be deemed to meet the requirements of this subsection. |
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