Bill Text: TX HB1665 | 2017-2018 | 85th Legislature | Comm Sub
Bill Title: Relating to the regulation of cross-border electric generating facilities.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-05-09 - Placed on General State Calendar [HB1665 Detail]
Download: Texas-2017-HB1665-Comm_Sub.html
85R21958 JXC-D | |||
By: Oliveira | H.B. No. 1665 | ||
Substitute the following for H.B. No. 1665: | |||
By: Geren | C.S.H.B. No. 1665 |
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relating to the regulation of cross-border electric generating | ||
facilities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter D, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.159 to read as follows: | ||
Sec. 39.159. SWITCHABLE ELECTRIC GENERATING FACILITIES FOR | ||
CROSS-BORDER DISPATCH. (a) In this section: | ||
(1) "Critical load condition" means a temporary | ||
condition on a power grid that requires or may require the | ||
interruption of firm load. | ||
(2) "Mexican power grid" means an electric power grid | ||
in the United Mexican States that is adjacent to the ERCOT power | ||
grid. | ||
(3) "Switchable electric generating facility" means | ||
an electric generating facility that consists of one or more units | ||
that: | ||
(A) are capable of synchronizing with and | ||
dispatching into the ERCOT power grid or the Mexican power grid at | ||
different times; and | ||
(B) can each dispatch into only the ERCOT power | ||
grid or the Mexican power grid at any given time. | ||
(b) Subject to Subsection (c), the commission shall approve | ||
a binding coordination agreement made between the operators of the | ||
ERCOT power grid and the Mexican power grid that governs the | ||
dispatching of energy into the ERCOT power grid and the Mexican | ||
power grid from a new switchable electric generating facility that | ||
is capable of making all generating units available to serve the | ||
ERCOT power grid during an emergency and that is commissioned after | ||
September 1, 2017, if the agreement complies with the requirements | ||
of this section. | ||
(c) The commission may impose reasonable conditions on a | ||
binding coordination agreement to protect the public interest. | ||
(d) The commission shall approve a binding coordination | ||
agreement filed with the commission that complies with the | ||
requirements of this section not later than the 185th day after the | ||
date the agreement is filed. | ||
(e) A binding coordination agreement must: | ||
(1) require that at least 35 percent of the switchable | ||
electric generating facility be committed to serve the ERCOT power | ||
grid to the exclusion of the Mexican power grid during an ERCOT | ||
critical load condition, regardless of conditions on the Mexican | ||
power grid; | ||
(2) provide reasonable assurance that the remaining | ||
nameplate capacity of the switchable electric generating facility | ||
cannot be denied to the operator of the Mexican power grid when the | ||
facility is called on by the operator of the Mexican power grid, | ||
regardless of whether an ERCOT critical load condition exists on | ||
the ERCOT power grid, unless the remaining capacity: | ||
(A) has been offered to the ERCOT power grid and | ||
is selected by the operator of the ERCOT power grid to provide | ||
ancillary services in accordance with Section 35.004(e); or | ||
(B) is otherwise expressly contractually | ||
committed to the operator of the ERCOT power grid; and | ||
(3) provide that the owner of the switchable electric | ||
generating facility is responsible for any penalties imposed on the | ||
operator of the ERCOT power grid by the commission, the Texas | ||
Reliability Entity, the Federal Energy Regulatory Commission, or | ||
the North American Electric Reliability Corporation for any action | ||
taken by the operator of the ERCOT power grid in accordance with | ||
Subdivision (2) if the entity imposing the penalty determines that | ||
a wrongful action of the switchable electric generating facility | ||
caused the violation for which the penalty is imposed. | ||
(f) A binding coordination agreement may limit the | ||
provision of service from a unit to the ERCOT power grid during an | ||
emergency. | ||
SECTION 2. This Act takes effect September 1, 2017. |