Bill Text: TX HB4832 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the reliability of the ERCOT power grid.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-29 - Left pending in committee [HB4832 Detail]
Download: Texas-2023-HB4832-Introduced.html
| 88R15918 JXC-D | ||
| By: Hunter | H.B. No. 4832 | |
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| relating to the reliability of the ERCOT power grid. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. The heading to Section 39.159, Utilities Code, | ||
| as added by Chapter 426 (S.B. 3), Acts of the 87th Legislature, | ||
| Regular Session, 2021, is amended to read as follows: | ||
| Sec. 39.159. POWER REGION RELIABILITY AND DISPATCHABLE | ||
| GENERATION. | ||
| SECTION 2. Section 39.159, Utilities Code, as added by | ||
| Chapter 426 (S.B. 3), Acts of the 87th Legislature, Regular | ||
| Session, 2021, is amended by amending Subsection (b) and adding | ||
| Subsections (b-1) and (d) to read as follows: | ||
| (b) The commission shall ensure that the independent | ||
| organization certified under Section 39.151 for the ERCOT power | ||
| region: | ||
| (1) establishes requirements to meet the reliability | ||
| needs of the power region; | ||
| (2) periodically, but at least annually, determines | ||
| the quantity and characteristics of ancillary or reliability | ||
| services necessary to ensure appropriate reliability during | ||
| extreme heat and extreme cold weather conditions and during times | ||
| of low non-dispatchable power production in the power region; | ||
| (3) procures ancillary or reliability services on a | ||
| competitive basis to ensure appropriate reliability during extreme | ||
| heat and extreme cold weather conditions and during times of low | ||
| non-dispatchable power production in the power region; | ||
| (4) develops appropriate qualification and | ||
| performance requirements for providing services under Subdivision | ||
| (3), including appropriate penalties for failure to provide the | ||
| services; [ |
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| (5) sizes the services procured under Subdivision (3) | ||
| to prevent prolonged rotating outages due to net load variability | ||
| in high demand and low supply scenarios; and | ||
| (6) allocates the cost of providing ancillary services | ||
| and reliability services procured under this section on an annual | ||
| basis among dispatchable generation facilities, non-dispatchable | ||
| generation facilities, and load serving entities in proportion to | ||
| their contribution to net load variability over the highest 100 | ||
| hours of net load in the preceding year as follows: | ||
| (A) for dispatchable generation facilities, the | ||
| difference between the mean of the highest quartile forced outage | ||
| rate for the facility and the mean forced outage rate of all | ||
| dispatchable generation facilities in the ERCOT power region; | ||
| (B) for non-dispatchable generation facilities, | ||
| the difference between the mean of the lowest quartile generation | ||
| for each non-dispatchable generation facility, divided by the | ||
| installed capacity of that facility, and the mean generation of all | ||
| non-dispatchable generation facilities in the ERCOT power region, | ||
| divided by the total installed capacity of all non-dispatchable | ||
| generation facilities in the ERCOT power region; and | ||
| (C) for load serving entities, the difference | ||
| between the mean of the highest quartile of each entity's metered | ||
| load and the mean of each entity's metered load. | ||
| (b-1) Subsection (b)(6) applies only to a generation | ||
| facility or load serving entity that has participated in the ERCOT | ||
| market for at least one year. | ||
| (d) The commission shall require the independent | ||
| organization certified under Section 39.151 for the ERCOT power | ||
| region to develop an ancillary services program that requires load | ||
| serving entities to purchase dispatchable reliability reserve | ||
| services on a day-ahead basis to account for market uncertainty. | ||
| The program must provide payments only to generation resources that | ||
| are not providing other ancillary services. The commission must | ||
| require the independent organization to: | ||
| (1) determine the quantity of services necessary based | ||
| on historical variations in generation availability for each season | ||
| based on a targeted reliability standard or goal, including | ||
| renewable intermittency and forced outage rates; and | ||
| (2) develop criteria for resource participation that | ||
| require a resource to: | ||
| (A) have a runtime of at least four hours; | ||
| (B) be available not less than two hours after | ||
| being called on for deployment; and | ||
| (C) have the dispatchable flexibility to address | ||
| inter-hour operational challenges. | ||
| SECTION 3. Subchapter D, Chapter 39, Utilities Code, is | ||
| amended by adding Section 39.1591 to read as follows: | ||
| Sec. 39.1591. REPORT ON DISPATCHABLE AND NON-DISPATCHABLE | ||
| GENERATION FACILITIES. The commission shall file an annual report | ||
| with the legislature that: | ||
| (1) includes: | ||
| (A) the estimated annual costs required to be | ||
| incurred under this subchapter by non-dispatchable generators to | ||
| guarantee that a firm amount of electric energy will be provided for | ||
| the ERCOT power grid; and | ||
| (B) the cumulative annual transmission costs | ||
| that have been incurred in the ERCOT market to facilitate the | ||
| transmission of non-dispatchable electricity to load; | ||
| (2) documents the status of the implementation of this | ||
| subchapter, including whether the rules and protocols adopted to | ||
| implement this subchapter have materially improved the | ||
| reliability, resilience, and transparency of the electricity | ||
| market; and | ||
| (3) includes recommendations for any additional | ||
| legislative measures needed to empower the commission to implement | ||
| market reforms to ensure that market signals are adequate to | ||
| preserve existing dispatchable generation and incentivize the | ||
| construction of new dispatchable generation sufficient to maintain | ||
| reliability standards for at least five years after the date of the | ||
| report. | ||
| SECTION 4. (a) Not later than September 1, 2024, the | ||
| Public Utility Commission of Texas shall implement the changes in | ||
| law made by this Act to Section 39.159(b), Utilities Code, as added | ||
| by Chapter 426 (S.B. 3), Acts of the 87th Legislature, Regular | ||
| Session, 2021. | ||
| (b) Not later than December 1, 2024, the Public Utility | ||
| Commission of Texas shall implement the changes in law made by this | ||
| Act in Section 39.159(d), Utilities Code, as added by this Act. | ||
| (c) The Public Utility Commission of Texas shall prepare the | ||
| portion of the first report required by Section 39.1591(1), | ||
| Utilities Code, as added by this Act, not later than December 1, | ||
| 2023. | ||
| (d) The Public Utility Commission of Texas shall prepare the | ||
| portions of the first report required by Sections 39.1591(2) and | ||
| (3), Utilities Code, as added by this Act, not later than December | ||
| 1, 2024. | ||
| SECTION 5. 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, 2023. | ||
