| 1 | 1 | | 88R13173 DIO-D |
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| 2 | 2 | | By: Goodwin H.B. No. 3637 |
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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 equitable distribution of involuntary load shedding |
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| 8 | 8 | | events. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 38.076(c), Utilities Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (c) The commission by rule shall: |
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| 13 | 13 | | (1) categorize types of critical load that may be |
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| 14 | 14 | | given the highest priority for power restoration; and |
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| 15 | 15 | | (2) require electric cooperatives, municipally owned |
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| 16 | 16 | | utilities, and transmission and distribution utilities providing |
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| 17 | 17 | | transmission service in the ERCOT power region to submit to each |
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| 18 | 18 | | county and municipality in which the cooperative or utility |
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| 19 | 19 | | provides service, the commission, and the independent organization |
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| 20 | 20 | | certified under Section 39.151 for the region: |
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| 21 | 21 | | (A) customers or circuits the cooperative or |
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| 22 | 22 | | utility has designated as critical load; and |
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| 23 | 23 | | (B) a plan for participating in load shedding in |
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| 24 | 24 | | response to an involuntary load shedding event described by |
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| 25 | 25 | | Subsection (a). |
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| 26 | 26 | | SECTION 2. Subchapter D, Chapter 38, Utilities Code, is |
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| 27 | 27 | | amended by adding Sections 38.078 and 38.079 to read as follows: |
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| 28 | 28 | | Sec. 38.078. UPGRADES TO DISTRIBUTION SYSTEM. (a) Each |
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| 29 | 29 | | transmission and distribution utility, municipally owned utility, |
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| 30 | 30 | | and electric cooperative shall make upgrades to the distribution |
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| 31 | 31 | | system operated by the utility or cooperative for the purpose of |
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| 32 | 32 | | more evenly distributing involuntary load shedding. |
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| 33 | 33 | | (b) A transmission and distribution utility, municipally |
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| 34 | 34 | | owned utility, or electric cooperative may recover reasonable and |
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| 35 | 35 | | necessary costs incurred in making upgrades to the distribution |
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| 36 | 36 | | system operated by the utility or cooperative. |
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| 37 | 37 | | (c) Each transmission and distribution utility, municipally |
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| 38 | 38 | | owned utility, and electric cooperative shall make a plan for using |
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| 39 | 39 | | advanced metering technology, software, equipment, and other |
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| 40 | 40 | | upgrades to a distribution system to deploy involuntary load |
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| 41 | 41 | | shedding. |
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| 42 | 42 | | (d) A plan developed under Subsection (c) may include use of |
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| 43 | 43 | | both advanced metering technology and distribution feeders. |
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| 44 | 44 | | Sec. 38.079. CRITICAL LOAD DESIGNATION. (a) The |
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| 45 | 45 | | commission by rule shall require electric cooperatives, |
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| 46 | 46 | | municipally owned utilities, and transmission and distribution |
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| 47 | 47 | | utilities to designate the following types of facilities as |
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| 48 | 48 | | critical load public safety customers, as defined by commission |
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| 49 | 49 | | rule: |
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| 50 | 50 | | (1) long-term care facilities; |
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| 51 | 51 | | (2) food pantries; |
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| 52 | 52 | | (3) homeless shelters; |
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| 53 | 53 | | (4) temporary shelters identified by the county; |
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| 54 | 54 | | (5) critical telecommunications facilities; |
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| 55 | 55 | | (6) critical water or wastewater facilities, as |
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| 56 | 56 | | defined by Section 418.0425, Government Code; and |
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| 57 | 57 | | (7) hospital facilities licensed under Chapter 241, |
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| 58 | 58 | | Health and Safety Code. |
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| 59 | 59 | | (b) The commission shall allow a county to designate a |
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| 60 | 60 | | critical load public safety customer, as defined by commission |
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| 61 | 61 | | rule. |
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| 62 | 62 | | SECTION 3. (a) In this section, the term "transmission and |
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| 63 | 63 | | distribution utility" has the meaning assigned by Section 31.002, |
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| 64 | 64 | | Utilities Code. |
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| 65 | 65 | | (b) Not later than September 1, 2024, the Public Utility |
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| 66 | 66 | | Commission of Texas shall adopt rules as necessary to implement the |
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| 67 | 67 | | changes in law made by this Act. |
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| 68 | 68 | | (c) A transmission and distribution utility, municipally |
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| 69 | 69 | | owned utility, or electric cooperative shall implement Section |
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| 70 | 70 | | 38.078, Utilities Code, as added by this Act, not later than |
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| 71 | 71 | | September 1, 2027. |
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| 72 | 72 | | (d) The Public Utility Commission of Texas may extend the |
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| 73 | 73 | | deadline under Subsection (c) of this section by not more than one |
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| 74 | 74 | | year, on a case-by-case basis. |
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| 75 | 75 | | SECTION 4. This Act takes effect September 1, 2023. |
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