Bill Text: TX SB1282 | 2021-2022 | 87th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 6-0)
Status: (Engrossed - Dead) 2021-05-25 - Postponed 7/4/21 10:00 AM [SB1282 Detail]
Download: Texas-2021-SB1282-Comm_Sub.html
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 6-0)
Status: (Engrossed - Dead) 2021-05-25 - Postponed 7/4/21 10:00 AM [SB1282 Detail]
Download: Texas-2021-SB1282-Comm_Sub.html
| By: Hancock | S.B. No. 1282 | |
| (In the Senate - Filed March 9, 2021; March 18, 2021, read | ||
| first time and referred to Committee on Business & Commerce; | ||
| April 9, 2021, reported adversely, with favorable Committee | ||
| Substitute by the following vote: Yeas 7, Nays 2; April 9, 2021, | ||
| sent to printer.) | ||
| COMMITTEE SUBSTITUTE FOR S.B. No. 1282 | By: Hancock | |
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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, 2021. | ||
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