| 1 | 1 | | By: Hall S.B. No. 1978 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to the interconnection of a facility in the ERCOT power |
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| 9 | 9 | | region to a facility outside the power region. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Sections 37.051(c-1), (c-2), and (c-3), |
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| 12 | 12 | | Utilities Code, are transferred to Subchapter D, Chapter 39, |
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| 13 | 13 | | Utilities Code, redesignated as Section 39.169, Utilities Code, and |
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| 14 | 14 | | amended to read as follows: |
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| 15 | 15 | | Sec. 39.169. INTERCONNECTION OF FACILITY IN ERCOT POWER |
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| 16 | 16 | | REGION TO FACILITY IN OTHER REGION OR STATE. (a) In this |
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| 17 | 17 | | subsection, "facility" means a facility that consumes, produces, |
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| 18 | 18 | | generates, transmits, distributes, or furnishes electricity. A |
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| 19 | 19 | | person, including an electric cooperative or a municipally owned |
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| 20 | 20 | | utility, may not take an action that would result in the |
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| 21 | 21 | | interconnection of a facility in the ERCOT power region to a |
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| 22 | 22 | | facility located wholly or partly outside of this state, or the |
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| 23 | 23 | | interconnection of a facility in the ERCOT power region to a |
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| 24 | 24 | | facility that is connected directly or indirectly with a facility |
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| 25 | 25 | | located wholly or partly outside of this state, unless: |
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| 26 | 26 | | (1) the commission first determines that the |
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| 27 | 27 | | interconnection is consistent with free market principles and does |
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| 28 | 28 | | not bring control of the Texas electric grid under federal |
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| 29 | 29 | | jurisdiction; and |
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| 30 | 30 | | (2) if applicable, the person complies with the |
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| 31 | 31 | | requirements of Chapter 37 and Subsection (b) of this section. |
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| 32 | 32 | | (b) A person seeking to make an interconnection described by |
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| 33 | 33 | | Subsection (a) [(c-1) Notwithstanding any other provision of this |
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| 34 | 34 | | title except Section 11.009, and except as provided by Subsection |
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| 35 | 35 | | (c-2), a person, including an electric utility or municipally owned |
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| 36 | 36 | | utility, may not interconnect a facility to the ERCOT transmission |
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| 37 | 37 | | grid that enables additional power to be imported into or exported |
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| 38 | 38 | | out of the ERCOT power grid unless the person obtains a certificate |
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| 39 | 39 | | from the commission stating that public convenience and necessity |
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| 40 | 40 | | requires or will require the interconnection. The person] must |
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| 41 | 41 | | obtain the determination under (a)(1) from the commission [apply |
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| 42 | 42 | | for the certificate] not later than the 180th day before the date |
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| 43 | 43 | | the person seeks any order from the Federal Energy Regulatory |
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| 44 | 44 | | Commission related to the interconnection. The commission shall |
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| 45 | 45 | | apply Section 37.056 in considering an application for a |
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| 46 | 46 | | certificate of convenience and necessity to which this section |
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| 47 | 47 | | applies [under this subsection]. [In addition, the commission must |
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| 48 | 48 | | determine that the application is consistent with the public |
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| 49 | 49 | | interest before granting the certificate.] The commission may |
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| 50 | 50 | | adopt rules necessary to implement this subsection. [This |
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| 51 | 51 | | subsection does not apply to a facility that is in service on |
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| 52 | 52 | | December 31, 2014.] |
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| 53 | 53 | | (c) [(c-2)] The commission, not later than the 185th day |
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| 54 | 54 | | after the date the application is filed, shall approve an |
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| 55 | 55 | | application [filed under Subsection (c-1)] for a facility that is |
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| 56 | 56 | | to be constructed under an interconnection agreement appended to an |
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| 57 | 57 | | offer of settlement approved in a final order of the Federal Energy |
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| 58 | 58 | | Regulatory Commission that was issued in Docket No. TX11-01-001 on |
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| 59 | 59 | | or before December 31, 2014, directing physical connection between |
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| 60 | 60 | | the ERCOT and SERC regions under Sections 210, 211, and 212 of the |
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| 61 | 61 | | Federal Power Act (16 U.S.C. Sections 824i, 824j, and 824k). In |
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| 62 | 62 | | approving the application, the commission may prescribe reasonable |
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| 63 | 63 | | conditions to protect the public interest that are consistent with |
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| 64 | 64 | | the final order of the Federal Energy Regulatory Commission. |
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| 65 | 65 | | (d) [(c-3)] Nothing in this section [Subsection (c-1) or |
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| 66 | 66 | | (c-2)] is intended to restrict the authority of the commission or |
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| 67 | 67 | | the independent organization certified under Section 39.151 for the |
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| 68 | 68 | | ERCOT power region to adopt rules or protocols of general |
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| 69 | 69 | | applicability. |
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| 70 | 70 | | SECTION 2. Section 39.169(a), Utilities Code, as added by |
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| 71 | 71 | | this Act, applies only to an action taken on or after the effective |
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| 72 | 72 | | date of this Act. An action taken before the effective date of this |
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| 73 | 73 | | Act is governed by the law in effect when the action was taken, and |
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| 74 | 74 | | the former law is continued in effect for that purpose. |
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| 75 | 75 | | SECTION 3. This Act takes effect immediately if it receives |
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| 76 | 76 | | a vote of two-thirds of all the members elected to each house, as |
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| 77 | 77 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 78 | 78 | | Act does not receive the vote necessary for immediate effect, this |
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| 79 | 79 | | Act takes effect September 1, 2025. |
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