By: Middleton S.B. No. 1707
A BILL TO BE ENTITLED
AN ACT
relating to reliability backup service for non-dispatchable
generation resources 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 39.1591 to read as follows:
Sec. 39.1591. BACKUP RELIABILITY SERVICE FOR
NON-DISPATCHABLE GENERATION. (a) For the purposes of this
section, a generation facility is considered to be non-dispatchable
if the facility's generation output is controlled primarily by
forces outside of human control.
(b) Each non-dispatchable wholesale generation resource in
the ERCOT power region shall pay a charge for reliability backup
service during each interval the non-dispatchable wholesale
generation resource is not available to meet system needs as
scheduled. The charge must be paid to dispatchable thermal
resources providing energy or ancillary services during the
intervals when the reliability backup service is required.
(c) The commission shall:
(1) establish the charge for reliability backup
service in an amount necessary to fully compensate dispatchable
thermal resources for providing reliability backup service to
improve and maintain the reliability of the grid; and
(2) direct the ERCOT independent system operator to
settle the charge for reliability backup service periodically.
SECTION 2. This Act takes effect September 1, 2023.