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6 | 10 | | |
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7 | 11 | | A BILL TO BE ENTITLED |
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8 | 12 | | AN ACT |
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9 | 13 | | relating to temporary emergency electric energy facilities. |
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10 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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11 | 15 | | SECTION 1. Section 39.918, Utilities Code, is amended by |
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12 | 16 | | amending Subsections (d) and (f) and adding Subsections (f-1), |
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13 | 17 | | (f-2), (f-3), and (f-4) to read as follows: |
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14 | 18 | | (d) A facility [Facilities] described by Subsection (b)(1): |
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15 | 19 | | (1) must be operated in isolation from the bulk power |
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16 | 20 | | system; [and] |
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17 | 21 | | (2) may not be included in independent system |
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18 | 22 | | operator: |
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19 | 23 | | (A) locational marginal pricing calculations; |
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20 | 24 | | (B) pricing; or |
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21 | 25 | | (C) reliability models; |
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22 | 26 | | (3) must be: |
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23 | 27 | | (A) mobile; |
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24 | 28 | | (B) capable of being moved from its staged |
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25 | 29 | | location in less than 12 hours; and |
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26 | 30 | | (C) capable of generating electric energy within |
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27 | 31 | | three hours after being connected to a demand source; and |
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28 | 32 | | (4) must have a maximum generation capacity of not |
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29 | 33 | | more than five megawatts. |
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30 | 34 | | (f) A transmission and distribution utility shall[, when |
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31 | 35 | | reasonably practicable,] use a competitive bidding process to lease |
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32 | 36 | | facilities under Subsection (b)(1). |
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33 | 37 | | (f-1) A transmission and distribution utility may not enter |
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34 | 38 | | into a lease under Subsection (b)(1) unless: |
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35 | 39 | | (1) the commission first, in a rate proceeding or a |
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36 | 40 | | separate contested case hearing, authorizes: |
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37 | 41 | | (A) the total generating capacity the utility may |
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38 | 42 | | lease; and |
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39 | 43 | | (B) the functions for which the utility may lease |
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40 | 44 | | facilities and the generation capacity the utility may lease for |
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41 | 45 | | each function; or |
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42 | 46 | | (2) the lease includes a provision that allows |
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43 | 47 | | alteration of the lease based on commission order or rule. |
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44 | 48 | | (f-2) The commission may limit the period during which an |
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45 | 49 | | authorization issued under Subsection (f-1) is valid. |
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46 | 50 | | (f-3) Notwithstanding Subsections (f) and (f-1)(1), a |
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47 | 51 | | transmission and distribution utility may enter into a lease under |
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48 | 52 | | Subsection (b)(1) without competitive bidding or prior commission |
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49 | 53 | | approval if: |
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50 | 54 | | (1) the transmission and distribution utility lacks |
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51 | 55 | | the leased generating capacity necessary to aid in restoring power |
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52 | 56 | | to the utility's customers during a significant power outage; |
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53 | 57 | | (2) the amount of leased generating capacity does not |
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54 | 58 | | significantly exceed the amount of megawatts necessary to restore |
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55 | 59 | | electric service to the utility's customers during a significant |
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56 | 60 | | power outage; and |
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57 | 61 | | (3) the term of the lease does not significantly |
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58 | 62 | | exceed the time period that is required to restore electric service |
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59 | 63 | | to the utility's customers during a significant power outage. |
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60 | 64 | | (f-4) A transmission and distribution utility that enters |
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61 | 65 | | into a lease in the manner provided by Subsection (f-3) shall |
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62 | 66 | | provide documentation to justify the amount of leased generating |
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63 | 67 | | capacity during the first base rate proceeding after the date the |
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64 | 68 | | lease begins. |
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65 | 69 | | SECTION 2. The changes in law made by this Act to Section |
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66 | 70 | | 39.918(d), Utilities Code, apply only to a temporary emergency |
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67 | 71 | | electric energy facility leased by a transmission and distribution |
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68 | 72 | | utility on or after the effective date of this Act. A temporary |
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69 | 73 | | emergency electric energy facility that was leased by a |
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70 | 74 | | transmission and distribution utility under Section 39.918(b)(1), |
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71 | 75 | | Utilities Code, before the effective date of this Act is governed by |
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72 | 76 | | the law in effect at the time the lease was executed, and the former |
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73 | 77 | | law is continued in effect for that purpose. |
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74 | 78 | | SECTION 3. This Act takes effect immediately if it receives |
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75 | 79 | | a vote of two-thirds of all the members elected to each house, as |
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76 | 80 | | provided by Section 39, Article III, Texas Constitution. If this |
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77 | 81 | | Act does not receive the vote necessary for immediate effect, this |
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78 | 82 | | Act takes effect September 1, 2025. |
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