Texas 2025 - 89th Regular

Texas Senate Bill SB231 Compare Versions

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1-By: King, Alvarado S.B. No. 231
2- Bettencourt
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1+By: King, Alvarado, Bettencourt S.B. No. 231
2+ (In the Senate - Filed November 12, 2024; February 3, 2025,
3+ read first time and referred to Committee on Business & Commerce;
4+ April 9, 2025, reported adversely, with favorable Committee
5+ Substitute by the following vote: Yeas 10, Nays 0; April 9, 2025,
6+ sent to printer.)
7+Click here to see the committee vote
8+ COMMITTEE SUBSTITUTE FOR S.B. No. 231 By: Schwertner
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711 A BILL TO BE ENTITLED
812 AN ACT
913 relating to temporary emergency electric energy facilities.
1014 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1115 SECTION 1. Section 39.918, Utilities Code, is amended by
1216 amending Subsections (d) and (f) and adding Subsections (f-1),
1317 (f-2), (f-3), and (f-4) to read as follows:
1418 (d) A facility [Facilities] described by Subsection (b)(1):
1519 (1) must be operated in isolation from the bulk power
1620 system; [and]
1721 (2) may not be included in independent system
1822 operator:
1923 (A) locational marginal pricing calculations;
2024 (B) pricing; or
2125 (C) reliability models;
2226 (3) must be:
2327 (A) mobile;
2428 (B) capable of being moved from its staged
2529 location in less than 12 hours; and
2630 (C) capable of generating electric energy within
2731 three hours after being connected to a demand source; and
2832 (4) must have a maximum generation capacity of not
2933 more than five megawatts.
3034 (f) A transmission and distribution utility shall[, when
3135 reasonably practicable,] use a competitive bidding process to lease
3236 facilities under Subsection (b)(1).
3337 (f-1) A transmission and distribution utility may not enter
3438 into a lease under Subsection (b)(1) unless:
3539 (1) the commission first, in a rate proceeding or a
3640 separate contested case hearing, authorizes:
3741 (A) the total generating capacity the utility may
3842 lease; and
3943 (B) the functions for which the utility may lease
4044 facilities and the generation capacity the utility may lease for
4145 each function; or
4246 (2) the lease includes a provision that allows
4347 alteration of the lease based on commission order or rule.
4448 (f-2) The commission may limit the period during which an
4549 authorization issued under Subsection (f-1) is valid.
4650 (f-3) Notwithstanding Subsections (f) and (f-1)(1), a
4751 transmission and distribution utility may enter into a lease under
4852 Subsection (b)(1) without competitive bidding or prior commission
4953 approval if:
5054 (1) the transmission and distribution utility lacks
5155 the leased generating capacity necessary to aid in restoring power
5256 to the utility's customers during a significant power outage;
5357 (2) the amount of leased generating capacity does not
5458 significantly exceed the amount of megawatts necessary to restore
5559 electric service to the utility's customers during a significant
5660 power outage; and
5761 (3) the term of the lease does not significantly
5862 exceed the time period that is required to restore electric service
5963 to the utility's customers during a significant power outage.
6064 (f-4) A transmission and distribution utility that enters
6165 into a lease in the manner provided by Subsection (f-3) shall
6266 provide documentation to justify the amount of leased generating
6367 capacity during the first base rate proceeding after the date the
6468 lease begins.
6569 SECTION 2. The changes in law made by this Act to Section
6670 39.918(d), Utilities Code, apply only to a temporary emergency
6771 electric energy facility leased by a transmission and distribution
6872 utility on or after the effective date of this Act. A temporary
6973 emergency electric energy facility that was leased by a
7074 transmission and distribution utility under Section 39.918(b)(1),
7175 Utilities Code, before the effective date of this Act is governed by
7276 the law in effect at the time the lease was executed, and the former
7377 law is continued in effect for that purpose.
7478 SECTION 3. This Act takes effect immediately if it receives
7579 a vote of two-thirds of all the members elected to each house, as
7680 provided by Section 39, Article III, Texas Constitution. If this
7781 Act does not receive the vote necessary for immediate effect, this
7882 Act takes effect September 1, 2025.
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