88R6480 ANG-F
By: Vasut H.B. No. 1984
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 that exceed the allowance 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) The commission by rule shall establish a reasonable
allowance for capital costs incurred to interconnect generation
resources and electric energy storage resources described by
Section 35.152(a) with the ERCOT transmission system, which must
include the costs of the direct interconnection of the generator to
the system and upgrades directly caused by the interconnection.
Any costs that exceed the allowance must be borne directly by the
generation resource or electric energy storage resource receiving
interconnection service through the facilities.
SECTION 2. This Act takes effect September 1, 2023.