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