Texas 2023 - 88th Regular

Texas House Bill HB4832 Compare Versions

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1	1	88R15918 JXC-D
2	2	By: Hunter H.B. No. 4832
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the reliability of the ERCOT power grid.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. The heading to Section 39.159, Utilities Code,
10	10	as added by Chapter 426 (S.B. 3), Acts of the 87th Legislature,
11	11	Regular Session, 2021, is amended to read as follows:
12	12	Sec. 39.159. POWER REGION RELIABILITY AND DISPATCHABLE
13	13	GENERATION.
14	14	SECTION 2. Section 39.159, Utilities Code, as added by
15	15	Chapter 426 (S.B. 3), Acts of the 87th Legislature, Regular
16	16	Session, 2021, is amended by amending Subsection (b) and adding
17	17	Subsections (b-1) and (d) to read as follows:
18	18	(b) The commission shall ensure that the independent
19	19	organization certified under Section 39.151 for the ERCOT power
20	20	region:
21	21	(1) establishes requirements to meet the reliability
22	22	needs of the power region;
23	23	(2) periodically, but at least annually, determines
24	24	the quantity and characteristics of ancillary or reliability
25	25	services necessary to ensure appropriate reliability during
26	26	extreme heat and extreme cold weather conditions and during times
27	27	of low non-dispatchable power production in the power region;
28	28	(3) procures ancillary or reliability services on a
29	29	competitive basis to ensure appropriate reliability during extreme
30	30	heat and extreme cold weather conditions and during times of low
31	31	non-dispatchable power production in the power region;
32	32	(4) develops appropriate qualification and
33	33	performance requirements for providing services under Subdivision
34	34	(3), including appropriate penalties for failure to provide the
35	35	services; [and]
36	36	(5) sizes the services procured under Subdivision (3)
37	37	to prevent prolonged rotating outages due to net load variability
38	38	in high demand and low supply scenarios; and
39	39	(6) allocates the cost of providing ancillary services
40	40	and reliability services procured under this section on an annual
41	41	basis among dispatchable generation facilities, non-dispatchable
42	42	generation facilities, and load serving entities in proportion to
43	43	their contribution to net load variability over the highest 100
44	44	hours of net load in the preceding year as follows:
45	45	(A) for dispatchable generation facilities, the
46	46	difference between the mean of the highest quartile forced outage
47	47	rate for the facility and the mean forced outage rate of all
48	48	dispatchable generation facilities in the ERCOT power region;
49	49	(B) for non-dispatchable generation facilities,
50	50	the difference between the mean of the lowest quartile generation
51	51	for each non-dispatchable generation facility, divided by the
52	52	installed capacity of that facility, and the mean generation of all
53	53	non-dispatchable generation facilities in the ERCOT power region,
54	54	divided by the total installed capacity of all non-dispatchable
55	55	generation facilities in the ERCOT power region; and
56	56	(C) for load serving entities, the difference
57	57	between the mean of the highest quartile of each entity's metered
58	58	load and the mean of each entity's metered load.
59	59	(b-1) Subsection (b)(6) applies only to a generation
60	60	facility or load serving entity that has participated in the ERCOT
61	61	market for at least one year.
62	62	(d) The commission shall require the independent
63	63	organization certified under Section 39.151 for the ERCOT power
64	64	region to develop an ancillary services program that requires load
65	65	serving entities to purchase dispatchable reliability reserve
66	66	services on a day-ahead basis to account for market uncertainty.
67	67	The program must provide payments only to generation resources that
68	68	are not providing other ancillary services. The commission must
69	69	require the independent organization to:
70	70	(1) determine the quantity of services necessary based
71	71	on historical variations in generation availability for each season
72	72	based on a targeted reliability standard or goal, including
73	73	renewable intermittency and forced outage rates; and
74	74	(2) develop criteria for resource participation that
75	75	require a resource to:
76	76	(A) have a runtime of at least four hours;
77	77	(B) be available not less than two hours after
78	78	being called on for deployment; and
79	79	(C) have the dispatchable flexibility to address
80	80	inter-hour operational challenges.
81	81	SECTION 3. Subchapter D, Chapter 39, Utilities Code, is
82	82	amended by adding Section 39.1591 to read as follows:
83	83	Sec. 39.1591. REPORT ON DISPATCHABLE AND NON-DISPATCHABLE
84	84	GENERATION FACILITIES. The commission shall file an annual report
85	85	with the legislature that:
86	86	(1) includes:
87	87	(A) the estimated annual costs required to be
88	88	incurred under this subchapter by non-dispatchable generators to
89	89	guarantee that a firm amount of electric energy will be provided for
90	90	the ERCOT power grid; and
91	91	(B) the cumulative annual transmission costs
92	92	that have been incurred in the ERCOT market to facilitate the
93	93	transmission of non-dispatchable electricity to load;
94	94	(2) documents the status of the implementation of this
95	95	subchapter, including whether the rules and protocols adopted to
96	96	implement this subchapter have materially improved the
97	97	reliability, resilience, and transparency of the electricity
98	98	market; and
99	99	(3) includes recommendations for any additional
100	100	legislative measures needed to empower the commission to implement
101	101	market reforms to ensure that market signals are adequate to
102	102	preserve existing dispatchable generation and incentivize the
103	103	construction of new dispatchable generation sufficient to maintain
104	104	reliability standards for at least five years after the date of the
105	105	report.
106	106	SECTION 4. (a) Not later than September 1, 2024, the
107	107	Public Utility Commission of Texas shall implement the changes in
108	108	law made by this Act to Section 39.159(b), Utilities Code, as added
109	109	by Chapter 426 (S.B. 3), Acts of the 87th Legislature, Regular
110	110	Session, 2021.
111	111	(b) Not later than December 1, 2024, the Public Utility
112	112	Commission of Texas shall implement the changes in law made by this
113	113	Act in Section 39.159(d), Utilities Code, as added by this Act.
114	114	(c) The Public Utility Commission of Texas shall prepare the
115	115	portion of the first report required by Section 39.1591(1),
116	116	Utilities Code, as added by this Act, not later than December 1,
117	117	2023.
118	118	(d) The Public Utility Commission of Texas shall prepare the
119	119	portions of the first report required by Sections 39.1591(2) and
120	120	(3), Utilities Code, as added by this Act, not later than December
121	121	1, 2024.
122	122	SECTION 5. This Act takes effect immediately if it receives
123	123	a vote of two-thirds of all the members elected to each house, as
124	124	provided by Section 39, Article III, Texas Constitution. If this
125	125	Act does not receive the vote necessary for immediate effect, this
126	126	Act takes effect September 1, 2023.