| 1 | 1 | | By: Middleton S.B. No. 1707 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to reliability backup service for non-dispatchable |
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| 7 | 7 | | generation resources in the ERCOT power region. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter D, Chapter 39, Utilities Code, is |
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| 10 | 10 | | amended by adding Section 39.1591 to read as follows: |
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| 11 | 11 | | Sec. 39.1591. BACKUP RELIABILITY SERVICE FOR |
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| 12 | 12 | | NON-DISPATCHABLE GENERATION. (a) For the purposes of this |
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| 13 | 13 | | section, a generation facility is considered to be non-dispatchable |
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| 14 | 14 | | if the facility's generation output is controlled primarily by |
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| 15 | 15 | | forces outside of human control. |
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| 16 | 16 | | (b) Each non-dispatchable wholesale generation resource in |
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| 17 | 17 | | the ERCOT power region shall pay a charge for reliability backup |
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| 18 | 18 | | service during each interval the non-dispatchable wholesale |
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| 19 | 19 | | generation resource is not available to meet system needs as |
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| 20 | 20 | | scheduled. The charge must be paid to dispatchable thermal |
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| 21 | 21 | | resources providing energy or ancillary services during the |
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| 22 | 22 | | intervals when the reliability backup service is required. |
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| 23 | 23 | | (c) The commission shall: |
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| 24 | 24 | | (1) establish the charge for reliability backup |
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| 25 | 25 | | service in an amount necessary to fully compensate dispatchable |
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| 26 | 26 | | thermal resources for providing reliability backup service to |
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| 27 | 27 | | improve and maintain the reliability of the grid; and |
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| 28 | 28 | | (2) direct the ERCOT independent system operator to |
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| 29 | 29 | | settle the charge for reliability backup service periodically. |
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| 30 | 30 | | SECTION 2. This Act takes effect September 1, 2023. |
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