| 1 | 1 | | By: Hunter H.B. No. 4831 |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | A BILL TO BE ENTITLED |
|---|
| 5 | 5 | | AN ACT |
|---|
| 6 | 6 | | relating to the implementation of a program to meet the reliability |
|---|
| 7 | 7 | | needs in the ERCOT power region. |
|---|
| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 9 | 9 | | SECTION 1. Subchapter D, Chapter 39, Utilities Code, is |
|---|
| 10 | 10 | | amended by adding Section 39.1595 to read as follows: |
|---|
| 11 | 11 | | Sec. 39.166. RELIABILITY PROGRAM. (a) The commission may |
|---|
| 12 | 12 | | not implement a reliability program for the ERCOT power region that |
|---|
| 13 | 13 | | provides for the purchase of credits earned by generators based on |
|---|
| 14 | 14 | | generator availability during times of high demand and low supply |
|---|
| 15 | 15 | | at a centrally determined clearing price until an updated |
|---|
| 16 | 16 | | assessment on the cost to and impact on the ERCOT market of the |
|---|
| 17 | 17 | | proposed program is conducted by both the independent organization |
|---|
| 18 | 18 | | certified under Section 39.151 for the ERCOT power region and the |
|---|
| 19 | 19 | | independent market monitor. The assessment must include: |
|---|
| 20 | 20 | | (1) an evaluation of the cost of new entry and the |
|---|
| 21 | 21 | | impact on consumer costs and the competitive retail market; |
|---|
| 22 | 22 | | (2) compilation of detailed information regarding |
|---|
| 23 | 23 | | cost offsets realized through a reduction in ancillary services; |
|---|
| 24 | 24 | | and |
|---|
| 25 | 25 | | (3) development of a set of metrics to measure the |
|---|
| 26 | 26 | | impact of the program on system reliability. |
|---|
| 27 | 27 | | (b) The reliability program described in Subsection (a) |
|---|
| 28 | 28 | | implemented by the commission must provide that: |
|---|
| 29 | 29 | | (1) credits are centrally cleared to avoid market |
|---|
| 30 | 30 | | manipulation by affiliated generation and retail companies; |
|---|
| 31 | 31 | | (2) participation in the program is limited to |
|---|
| 32 | 32 | | dispatchable resources with the specific attributes necessary to |
|---|
| 33 | 33 | | meet operational needs of the ERCOT power region; |
|---|
| 34 | 34 | | (3) qualifying generators receive performance credits |
|---|
| 35 | 35 | | not to exceed the amount of generation bid into the forward market |
|---|
| 36 | 36 | | on an individual basis; |
|---|
| 37 | 37 | | (4) generating units receive performance credits only |
|---|
| 38 | 38 | | for providing power during the tightest hours as defined by the |
|---|
| 39 | 39 | | commission; |
|---|
| 40 | 40 | | (5) a penalty structure exists for generators that bid |
|---|
| 41 | 41 | | into the forward market but do not meet their full obligation, |
|---|
| 42 | 42 | | without exception, that results in a net benefit to load; |
|---|
| 43 | 43 | | (6) the independent market monitor has the authority |
|---|
| 44 | 44 | | and necessary resources to investigate potential instances of |
|---|
| 45 | 45 | | market manipulation, including financial and physical actions, and |
|---|
| 46 | 46 | | recommend penalties to the commission; and |
|---|
| 47 | 47 | | (7) the program is subject to an independent review to |
|---|
| 48 | 48 | | determine the benefits of its continuation that must be completed |
|---|
| 49 | 49 | | by January 1, 2029. |
|---|
| 50 | 50 | | (c) This section expires September 1, 2029. |
|---|
| 51 | 51 | | SECTION 2. This Act takes effect immediately if it receives |
|---|
| 52 | 52 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 53 | 53 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 54 | 54 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 55 | 55 | | Act takes effect September 1, 2023. |
|---|