Bill Text: TX HB2687 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the prevention of power blackouts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-17 - Referred to State Affairs [HB2687 Detail]
Download: Texas-2021-HB2687-Introduced.html
87R11102 JXC-F | ||
By: Reynolds | H.B. No. 2687 |
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relating to the prevention of power blackouts. | ||
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. ASSURING RELIABILITY IN THE ERCOT POWER | ||
REGION. (a) The commission by rule shall require a power | ||
generation company operating in the ERCOT power region to: | ||
(1) weatherize the company's generation facilities and | ||
associated equipment on an annual basis so that the facilities and | ||
equipment are able to operate in extreme cold and heat; and | ||
(2) submit annual weatherization plans to the | ||
commission and the independent organization certified under | ||
Section 39.151 for the ERCOT power region. | ||
(b) The rules adopted under Subsection (a) must require | ||
weatherization sufficient to withstand the extreme weather events | ||
in Texas in February 2011, August 2011, and February 2021. | ||
(c) The commission shall consider standards recommended by | ||
federal agencies for weatherization when adopting rules under | ||
Subsection (a). | ||
(d) The commission may: | ||
(1) inspect the generation facilities and associated | ||
equipment of a power generation company for compliance with the | ||
rules adopted under Subsection (a); and | ||
(2) require a power generation company to take an | ||
action included in the company's annual weatherization plan. | ||
(e) If the commission or independent organization certified | ||
under Section 39.151 for the ERCOT power region determines that | ||
changes in the amounts of existing ancillary service obligations | ||
required by load serving entities are needed: | ||
(1) the commission by rule may address the imbalance; | ||
and | ||
(2) the independent organization may make changes to | ||
its ancillary service obligations through a stakeholder process to | ||
address the imbalance. | ||
(f) The commission by rule shall establish a process for | ||
obtaining emergency response services in addition to ancillary | ||
services as appropriate to prevent rolling blackout conditions | ||
caused by shortages of supply in the ERCOT power region. The rules | ||
must include: | ||
(1) parameters for estimating the amount of emergency | ||
response service capacity necessary to prevent blackout | ||
conditions; and | ||
(2) mechanisms for equitably sharing the costs of: | ||
(A) contracting for reserve capacity to be | ||
available; and | ||
(B) power provided to prevent blackout | ||
conditions. | ||
(g) The commission shall ensure that the total cost for | ||
ensuring the emergency response services does not exceed $100 | ||
million annually. | ||
(h) In accordance with rules adopted under Subsection (f), | ||
the independent organization certified under Section 39.151 for the | ||
ERCOT power region shall contract with qualified loads, electric | ||
storage companies, and power generation companies, including | ||
aggregation of loads and generators, for a defined amount of | ||
emergency response service capacity the organization may call on to | ||
ensure that power shortages or demand spikes do not create a need | ||
for rolling blackouts. | ||
(i) Before the independent organization certified under | ||
Section 39.151 for the ERCOT power region calls on the emergency | ||
response service capacity to prevent rolling blackouts, the | ||
organization shall use all market sources of power, including | ||
electric energy storage and demand reduction, in accordance with | ||
commission rules adopted under this section. | ||
SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.9053 to read as follows: | ||
Sec. 39.9053. DEMAND RESPONSE IN ERCOT POWER REGION. (a) | ||
In this section: | ||
(1) "Demand response" means changes in electric usage | ||
by customers from their normal consumption patterns in response to: | ||
(A) changes in the price of electricity use over | ||
time; or | ||
(B) incentive payments designed to induce lower | ||
electricity use at times of high wholesale market prices or when the | ||
system reliability is jeopardized. | ||
(2) "Demand response provider" means a competitive | ||
energy services provider that aggregates customer load reduction | ||
capabilities, including reliability demand response capability, | ||
and offers those capabilities into an electricity market or | ||
program. | ||
(3) "Reliability demand response" means demand | ||
response to be dispatched by an independent system operator or a | ||
distribution utility in response to an electric grid reliability | ||
issue. | ||
(b) The legislature finds that electricity markets function | ||
most efficiently when supply side and demand side resources both | ||
contribute to the adequacy of the electric system. The legislature | ||
also finds that the ERCOT power region has not yet achieved its | ||
potential for demand response, and, therefore, it is the policy of | ||
this state to promote the development of demand response to its | ||
maximum potential and to eliminate unnecessary barriers to demand | ||
response participation in the ERCOT power region. | ||
(c) The commission by rule shall: | ||
(1) require the independent organization certified | ||
under Section 39.151 for the ERCOT power region to provide the | ||
commission not less frequently than December 1 of each odd-numbered | ||
year with an analysis of the potential demand response opportunity | ||
and penetration in the ERCOT power region; | ||
(2) promote development of demand response | ||
participation by customers in all customer classes; | ||
(3) remove barriers to demand response participation | ||
for demand response providers and for customers in all customer | ||
classes; | ||
(4) ensure that customers in all customer classes have | ||
the option to contract for participation in demand response either | ||
directly with one or more demand response providers, including | ||
retail electric providers, with scheduling entities qualified by | ||
the independent system operator, or with a combination of entities | ||
consisting of the independent system operator and one or more | ||
demand response providers; | ||
(5) establish and encourage markets, products, | ||
programs, or services for reliability demand response and other | ||
forms of demand response in wholesale and retail markets; and | ||
(6) provide opportunities for demand response | ||
providers and customers to participate in wholesale energy markets | ||
and ancillary services markets on a comparable basis with other | ||
resources, while accommodating differences in operational | ||
capabilities of various customer loads among customer classes, | ||
including differences related to availability, dispatch | ||
notification timelines, curtailment response times, ramp rates, | ||
curtailment duration, and times required to return to service | ||
following an outage. | ||
SECTION 3. The Public Utility Commission of Texas shall | ||
adopt rules as necessary to implement Section 39.9053, Utilities | ||
Code, as added by this Act, not later than May 1, 2022. | ||
SECTION 4. (a) The Public Utility Commission of Texas shall | ||
work with the independent organization certified under Section | ||
39.151, Utilities Code, for the ERCOT power region to: | ||
(1) assess the structure and amounts of existing | ||
ancillary service obligations required by load serving entities; | ||
and | ||
(2) consider changes that may be required to improve | ||
reliability of the electric grid system, including reducing the | ||
need for rolling blackouts in extreme weather. | ||
(b) In conducting the analysis under Subsection (a) of this | ||
section, the commission and independent organization must seek | ||
stakeholder input and consider all generation resources, including | ||
distributed generation, electric storage, demand response, energy | ||
efficiency, and power generation. | ||
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, 2021. |