Bill Text: TX SB1282 | 2021-2022 | 87th Legislature | Engrossed

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-Engrossed.html
 
 
  By: Hancock, et al. S.B. No. 1282
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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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