2025S0155-1 02/28/25
By: Darby H.B. No. 3970
A BILL TO BE ENTITLED
AN ACT
relating to electricity planning for large loads.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 39, Utilities Code, is
amended by adding Section 39.169 to read as follows:
Sec. 39.169. LARGE LOAD INTERCONNECTION; RELIABILITY
PROGRAM. (a) In this section, "behind-the-meter generation" means
a new generation facility on the retail customer's side of the
meter.
(b) The commission by rule shall require the independent
organization certified under Section 39.151 for the ERCOT power
region to develop and implement an interconnection program to
provide an expedited interconnection process for operators of large
loads who agree to cease consuming energy from the power grid
through deployment of their behind-the-meter generation when
directed to by the independent organization. The program must be
available only to large loads that are a facility at a single site
with an aggregate peak power demand that exceeds a demand threshold
established by the independent organization. The threshold must be
at least 75 megawatts unless the independent organization
determines that a lower threshold will better ensure reliability in
the ERCOT power region.
(c) The program must require the independent organization
certified under Section 39.151 for the ERCOT power region and the
relevant electric cooperative, municipally owned utility, or
transmission and distribution utility to give priority to a large
load in the interconnection queue participating in the program.
(d) The program must provide that:
(1) an interconnection application for a
participating large load with behind-the-meter generation that
agrees to offer the energy generated by the behind-the-meter
generation to the power grid at times directed by the independent
organization or reduce its energy consumption from the power grid
to a minimum level established by the independent organization will
be given priority over other interconnection applications that are
pending before the independent organization and the relevant
electric cooperative, municipally owned utility, or transmission
and distribution utility, including any applications from other
participating large loads without behind-the-meter generation;
(2) if applicable, the generator interconnection
application for a participating large load's behind-the-meter
generation will be processed in parallel with the load
interconnection application; and
(3) an applicant for participation in the program may
choose:
(A) if authorized by the independent
organization and the relevant electric cooperative, municipally
owned utility, or transmission and distribution utility, to
contract with a vendor approved by the relevant electric
cooperative, municipally owned utility, or transmission and
distribution utility or by the independent organization to perform
all studies required by the relevant electric cooperative,
municipally owned utility, or transmission and distribution
utility before the approval of the interconnection application;
(B) to procure equipment required for the
interconnection in accordance with technical specifications
provided by the relevant electric cooperative, municipally owned
utility, or transmission and distribution utility; and
(C) to construct interconnection facilities in
accordance with technical and other requirements of the relevant
electric cooperative, municipally owned utility, or transmission
and distribution utility.
(e) The program shall provide that studies required by an
electric cooperative, municipally owned utility, or transmission
and distribution utility before the approval of an interconnection
application for a participating large load may evaluate the load as
non-firm.
SECTION 2. This Act takes effect September 1, 2025.