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| 4 | 6 | | |
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| 5 | 7 | | |
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| 6 | 8 | | |
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| 7 | 9 | | A BILL TO BE ENTITLED |
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| 8 | 10 | | AN ACT |
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| 9 | 11 | | relating to the approval of a certificate of convenience and |
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| 10 | 12 | | necessity for certain transmission projects. |
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| 11 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 14 | | SECTION 1. It is the intent of the legislature that the |
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| 13 | 15 | | economic transmission planning required by this Act provides cost |
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| 14 | 16 | | savings for consumers. |
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| 15 | 17 | | SECTION 2. Section 37.056, Utilities Code, is amended by |
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| 16 | 18 | | adding Subsections (d-1) and (d-2) to read as follows: |
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| 17 | 19 | | (d-1) In addition to the criteria described by Subsections |
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| 18 | 20 | | (c) and (d), the commission by rule shall establish supplemental |
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| 19 | 21 | | multi-decade transmission planning criteria for granting a |
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| 20 | 22 | | certificate for a transmission project that serves the ERCOT power |
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| 21 | 23 | | region and that is not necessary to meet state or federal |
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| 22 | 24 | | reliability standards. The criteria must provide for an evaluation |
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| 23 | 25 | | of potential savings for customers using methods such as discount |
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| 24 | 26 | | rates, hurdle rates, averaging costs over a reasonable number of |
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| 25 | 27 | | years, or scenario planning or any other method the commission |
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| 26 | 28 | | considers appropriate. The commission shall include with the |
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| 27 | 29 | | commission's decision on an application for a certificate to which |
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| 28 | 30 | | this subsection applies the commission's findings on the |
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| 29 | 31 | | multi-decade transmission planning criteria. |
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| 30 | 32 | | (d-2) The commission may use an evaluation of a proposed |
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| 31 | 33 | | transmission project conducted by the independent organization |
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| 32 | 34 | | certified under Section 39.151 for the ERCOT power region using the |
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| 33 | 35 | | criteria developed under Subsection (d) or (d-1) when considering |
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| 34 | 36 | | whether to grant a certificate for a transmission project. |
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| 35 | 37 | | SECTION 3. The Public Utility Commission of Texas shall |
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| 36 | 38 | | adopt any rules necessary to implement the changes in law made by |
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| 37 | 39 | | Section 37.056(d-1), Utilities Code, as added by this Act, not |
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| 38 | 40 | | later than September 1, 2026. |
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| 39 | 41 | | SECTION 4. The Public Utility Commission of Texas shall |
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| 40 | 42 | | direct the independent organization certified for the ERCOT power |
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| 41 | 43 | | region under Section 39.151, Utilities Code, to take any action |
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| 42 | 44 | | necessary for the implementation of the changes in law made by this |
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| 43 | 45 | | Act not later than September 1, 2026. |
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| 44 | 46 | | SECTION 5. The changes in law made by this Act apply only to |
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| 45 | 47 | | a proceeding affecting a certificate of public convenience and |
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| 46 | 48 | | necessity that commences on or after September 1, 2026. A |
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| 47 | 49 | | proceeding affecting a certificate of public convenience and |
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| 48 | 50 | | necessity that commenced before that date is governed by the law in |
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| 49 | 51 | | effect on the date the proceeding is commenced, and that law is |
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| 50 | 52 | | continued in effect for that purpose. |
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| 51 | 53 | | SECTION 6. This Act takes effect September 1, 2025. |
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