Bill Text: TX HB218 | 2021 | 87th Legislature 1st Special Session | Introduced
Bill Title: Relating to electricity pricing rules and operating procedures that eliminate or compensate for market distortion caused by certain federal tax credits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-07-09 - Filed [HB218 Detail]
Download: Texas-2021-HB218-Introduced.html
| 87S10696 CXP-F | ||
| By: Patterson | H.B. No. 218 | |
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| relating to electricity pricing rules and operating procedures that | ||
| eliminate or compensate for market distortion caused by certain | ||
| federal tax credits. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter D, Chapter 39, Utilities Code, is | ||
| amended by adding Section 39.166 to read as follows: | ||
| Sec. 39.166. MARKET DISTORTION RESPONSE. (a) The | ||
| commission and the ERCOT independent system operator shall adopt | ||
| rules, operating procedures, and protocols to eliminate or | ||
| compensate for any distortion in electricity pricing in the ERCOT | ||
| power region caused by a federal tax credit provided under 26 U.S.C. | ||
| Section 45. | ||
| (b) Rules, operating procedures, and protocols adopted | ||
| under this section must ensure that costs imposed on the system by | ||
| the sale of electricity that is eligible for a federal tax credit | ||
| provided under 26 U.S.C. Section 45, including costs of maintaining | ||
| sufficient capacity to serve load at the summer peak demand caused | ||
| by the loss of new investment from below-market prices, are paid by | ||
| the parties that impose the costs. | ||
| (c) In conjunction with adopting rules, operating | ||
| procedures, and protocols under this section, the commission and | ||
| the ERCOT independent system operator shall eliminate any rules, | ||
| operating procedures, or protocols that attempt to adjust | ||
| electricity prices to reflect the value of reserves at different | ||
| reserve levels based on the probability of reserves falling below | ||
| the minimum contingency level and the value of lost load. | ||
| SECTION 2. This Act takes effect on the 91st day after the | ||
| last day of the legislative session. | ||
