By: King, Alvarado, Bettencourt S.B. No. 231
(In the Senate - Filed November 12, 2024; February 3, 2025,
read first time and referred to Committee on Business & Commerce;
April 9, 2025, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 10, Nays 0; April 9, 2025,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 231 By: Schwertner
A BILL TO BE ENTITLED
AN ACT
relating to temporary emergency electric energy facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.918, Utilities Code, is amended by
amending Subsections (d) and (f) and adding Subsections (f-1),
(f-2), (f-3), and (f-4) to read as follows:
(d) A facility [Facilities] described by Subsection (b)(1):
(1) must be operated in isolation from the bulk power
system; [and]
(2) may not be included in independent system
operator:
(A) locational marginal pricing calculations;
(B) pricing; or
(C) reliability models;
(3) must be:
(A) mobile;
(B) capable of being moved from its staged
location in less than 12 hours; and
(C) capable of generating electric energy within
three hours after being connected to a demand source; and
(4) must have a maximum generation capacity of not
more than five megawatts.
(f) A transmission and distribution utility shall[, when
reasonably practicable,] use a competitive bidding process to lease
facilities under Subsection (b)(1).
(f-1) A transmission and distribution utility may not enter
into a lease under Subsection (b)(1) unless:
(1) the commission first, in a rate proceeding or a
separate contested case hearing, authorizes:
(A) the total generating capacity the utility may
lease; and
(B) the functions for which the utility may lease
facilities and the generation capacity the utility may lease for
each function; or
(2) the lease includes a provision that allows
alteration of the lease based on commission order or rule.
(f-2) The commission may limit the period during which an
authorization issued under Subsection (f-1) is valid.
(f-3) Notwithstanding Subsections (f) and (f-1)(1), a
transmission and distribution utility may enter into a lease under
Subsection (b)(1) without competitive bidding or prior commission
approval if:
(1) the transmission and distribution utility lacks
the leased generating capacity necessary to aid in restoring power
to the utility's customers during a significant power outage;
(2) the amount of leased generating capacity does not
significantly exceed the amount of megawatts necessary to restore
electric service to the utility's customers during a significant
power outage; and
(3) the term of the lease does not significantly
exceed the time period that is required to restore electric service
to the utility's customers during a significant power outage.
(f-4) A transmission and distribution utility that enters
into a lease in the manner provided by Subsection (f-3) shall
provide documentation to justify the amount of leased generating
capacity during the first base rate proceeding after the date the
lease begins.
SECTION 2. The changes in law made by this Act to Section
39.918(d), Utilities Code, apply only to a temporary emergency
electric energy facility leased by a transmission and distribution
utility on or after the effective date of this Act. A temporary
emergency electric energy facility that was leased by a
transmission and distribution utility under Section 39.918(b)(1),
Utilities Code, before the effective date of this Act is governed by
the law in effect at the time the lease was executed, and the former
law is continued in effect for that purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
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