| 1 | 1 | | By: Reynolds H.B. No. 63 |
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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 authority of the Public Utility Commission of Texas |
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| 7 | 7 | | to ensure the independent organization certified for the ERCOT |
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| 8 | 8 | | power region has adequate reserve power to prevent blackout |
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| 9 | 9 | | conditions. |
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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. Subchapter D, Chapter 39, Utilities Code, is |
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| 12 | 12 | | amended by adding Section 39.166 to read as follows: |
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| 13 | 13 | | Sec. 39.166. ENSURING RESERVE POWER CAPACITY. (a) The |
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| 14 | 14 | | commission by rule shall develop a process for obtaining emergency |
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| 15 | 15 | | reserve power generation capacity as appropriate to prevent |
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| 16 | 16 | | blackout conditions caused by shortages of generated power in the |
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| 17 | 17 | | ERCOT power region. The rules must provide: |
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| 18 | 18 | | (1) parameters for estimating the amount of emergency |
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| 19 | 19 | | reserve power generation capacity necessary to prevent blackout |
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| 20 | 20 | | conditions; and |
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| 21 | 21 | | (2) mechanisms for equitably sharing the costs of |
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| 22 | 22 | | making the reserve capacity available and the costs of generated |
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| 23 | 23 | | power provided to prevent blackout conditions. |
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| 24 | 24 | | (b) In accordance with rules adopted under Subsection (a), |
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| 25 | 25 | | an independent organization certified under Section 39.151 for the |
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| 26 | 26 | | ERCOT power region shall adopt procedures and enter contracts as |
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| 27 | 27 | | necessary to ensure the availability of a defined amount of |
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| 28 | 28 | | emergency reserve power generation capacity the organization may |
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| 29 | 29 | | call on to prevent blackouts caused by shortages of generated |
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| 30 | 30 | | power. |
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| 31 | 31 | | (c) Before the independent organization calls on the |
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| 32 | 32 | | emergency reserve power generation capacity to prevent blackout |
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| 33 | 33 | | conditions, the organization shall use all other sources of power |
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| 34 | 34 | | and demand reduction available in accordance with commission rules |
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| 35 | 35 | | adopted under this section. |
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| 36 | 36 | | SECTION 2. This Act takes effect immediately if it receives |
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| 37 | 37 | | a vote of two-thirds of all the members elected to each house, as |
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| 38 | 38 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 39 | 39 | | Act does not receive the vote necessary for immediate effect, this |
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| 40 | 40 | | Act takes effect on the 91st day after the last day of the |
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| 41 | 41 | | legislative session. |
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