Bill Text: TX HB1984 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to cost recovery for costs arising from the interconnection of certain electric generation facilities with the ERCOT transmission system.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-04-19 - Left pending in committee [HB1984 Detail]
Download: Texas-2023-HB1984-Introduced.html
| 88R6480 ANG-F | ||
| By: Vasut | H.B. No. 1984 | |
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| relating to cost recovery for costs arising from the | ||
| interconnection of certain electric generation facilities with the | ||
| ERCOT transmission system. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 35.004, Utilities Code, is amended by | ||
| amending Subsection (d) and adding Subsection (d-1) to read as | ||
| follows: | ||
| (d) The commission shall price wholesale transmission | ||
| services within ERCOT based on the postage stamp method of pricing | ||
| under which a transmission-owning utility's rate is based on the | ||
| ERCOT utilities' combined annual costs of transmission, other than | ||
| costs that exceed the allowance described in Subsection (d-1), | ||
| divided by the total demand placed on the combined transmission | ||
| systems of all such transmission-owning utilities within a power | ||
| region. An electric utility subject to the freeze period imposed by | ||
| Section 39.052 may treat transmission costs in excess of | ||
| transmission revenues during the freeze period as an expense for | ||
| purposes of determining annual costs in the annual report filed | ||
| under Section 39.257. Notwithstanding Section 36.201, the | ||
| commission may approve wholesale rates that may be periodically | ||
| adjusted to ensure timely recovery of transmission investment. | ||
| Notwithstanding Section 36.054(a), if the commission determines | ||
| that conditions warrant the action, the commission may authorize | ||
| the inclusion of construction work in progress in the rate base for | ||
| transmission investment required by the commission under Section | ||
| 39.203(e). | ||
| (d-1) The commission by rule shall establish a reasonable | ||
| allowance for capital costs incurred to interconnect generation | ||
| resources and electric energy storage resources described by | ||
| Section 35.152(a) with the ERCOT transmission system, which must | ||
| include the costs of the direct interconnection of the generator to | ||
| the system and upgrades directly caused by the interconnection. | ||
| Any costs that exceed the allowance must be borne directly by the | ||
| generation resource or electric energy storage resource receiving | ||
| interconnection service through the facilities. | ||
| SECTION 2. This Act takes effect September 1, 2023. | ||
