Bill Text: TX HB2561 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the allocation of congestion rents in the ERCOT wholesale market.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-04-08 - Left pending in committee [HB2561 Detail]
Download: Texas-2015-HB2561-Introduced.html
| 84R2489 JXC-F | ||
| By: Keffer | H.B. No. 2561 | |
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| relating to the allocation of congestion rents in the ERCOT | ||
| wholesale market. | ||
| 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. CONGESTION RENT IN ERCOT WHOLESALE MARKET. | ||
| (a) In this section, "congestion rent" means a pricing element that | ||
| is: | ||
| (1) added to the average market price of a generation | ||
| product; and | ||
| (2) based on the flow of power between two discrete | ||
| locations. | ||
| (b) The commission by rule shall establish a system to | ||
| annually prioritize and allocate congestion rents accrued on the | ||
| grid in the ERCOT wholesale market to transmission and distribution | ||
| utilities for congestion relief projects. | ||
| (c) A power generation company may not receive congestion | ||
| rent accrued on the grid in the ERCOT wholesale market. | ||
| (d) The rules must: | ||
| (1) establish a process for a transmission and | ||
| distribution utility to submit to the independent organization | ||
| certified under Section 39.151 for ERCOT an application to receive | ||
| congestion rent to offset the cost of a proposed congestion relief | ||
| project and for the staff of the organization to evaluate the | ||
| applications; | ||
| (2) establish criteria for congestion relief projects | ||
| for which a transmission and distribution utility is eligible to | ||
| receive congestion rent; | ||
| (3) require collected congestion rents to be remitted | ||
| to the independent organization certified under Section 39.151 for | ||
| ERCOT to be held by the organization in escrow, by zone, in separate | ||
| accounts according to zone; | ||
| (4) establish a system for the commission to | ||
| prioritize and allocate congestion rents for congestion relief | ||
| projects; and | ||
| (5) prohibit a transmission and distribution utility | ||
| from recovering through allocated congestion rent a capital | ||
| expenditure the utility has already recovered through its rates. | ||
| SECTION 2. Not later than January 1, 2016, the Public | ||
| Utility Commission of Texas shall adopt rules as necessary to | ||
| implement Section 39.159, Utilities Code, as added by this Act. | ||
| SECTION 3. This Act takes effect September 1, 2015. | ||
