Bill Text: TX SB1941 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to use of electric energy storage facilities in the ERCOT power region.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2019-05-21 - Placed on General State Calendar [SB1941 Detail]
Download: Texas-2019-SB1941-Introduced.html
Bill Title: Relating to use of electric energy storage facilities in the ERCOT power region.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2019-05-21 - Placed on General State Calendar [SB1941 Detail]
Download: Texas-2019-SB1941-Introduced.html
2019S0319-1 03/01/19 | ||
By: Hancock | S.B. No. 1941 |
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relating to the use of electric energy storage facilities in the | ||
ERCOT power region. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 35.151, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 35.151. ELECTRIC ENERGY STORAGE. (a) This subchapter | ||
applies to electric energy storage equipment or facilities that are | ||
intended to provide energy or ancillary services at wholesale, | ||
including electric energy storage equipment or facilities listed on | ||
a power generation company's registration with the commission or, | ||
for an exempt wholesale generator, on the generator's registration | ||
with the Federal Energy Regulatory Commission. | ||
(b) This subchapter does not apply to ownership or operation | ||
of electric energy storage equipment or facilities outside of | ||
ERCOT. | ||
SECTION 2. Subchapter E, Chapter 35, Utilities Code, is | ||
amended by adding Section 35.153 to read as follows: | ||
Sec. 35.153. USE OF ELECTRIC ENERGY STORAGE FACILITIES FOR | ||
DISTRIBUTION SYSTEM RELIABILITY. (a) With prior approval by the | ||
commission and to ensure reliable service to retail customers, a | ||
transmission and distribution utility may enter into an agreement | ||
with a power generation company to provide electricity from an | ||
energy storage facility. | ||
(b) An agreement under Subsection (a) is limited to | ||
situations where construction of traditional distribution | ||
facilities is not cost-effective when compared to the use of an | ||
energy storage facility. | ||
(c) A transmission and distribution utility must issue a | ||
request for proposals to provide electricity from an energy storage | ||
facility to meet specific reliability needs. | ||
(d) The energy storage facility may be used to offer or sell | ||
electric energy or ancillary services so long as the power | ||
generation company reserves the capacity required by the agreement | ||
with the transmission and distribution utility. | ||
(e) The energy storage facility may be discharged for | ||
reliability purposes only when and as directed by the transmission | ||
and distribution utility. | ||
(f) An agreement under Subsection (a) may provide that the | ||
energy storage facility owner will reimburse the transmission and | ||
distribution utility for an administrative penalty the commission | ||
assessed because the facility failed to meet the requirements of | ||
the agreement. | ||
(g) An agreement between a transmission and distribution | ||
utility and a power generation company that owns an energy storage | ||
facility shall be reviewed in a proceeding under Chapter 36. The | ||
transmission and distribution utility has the burden of | ||
establishing that the agreement, including associated costs, is | ||
reasonable and necessary. | ||
(h) If a transmission and distribution utility issues a | ||
request for proposals to provide electricity from an energy storage | ||
facility to meet specific reliability needs and does not receive an | ||
offer that meets the requirements of the request for proposals, | ||
then, with prior approval by the commission, the transmission and | ||
distribution utility may own and operate an energy storage facility | ||
to ensure reliable delivery of electricity to retail customers. | ||
The total amount of energy storage capacity owned by a single | ||
transmission and distribution utility for this purpose may not | ||
exceed 10 megawatts. | ||
(i) A transmission and distribution utility that owns or | ||
operates an energy storage facility in accordance with Subsection | ||
(h) must purchase the energy to charge the facility from a retail | ||
electric provider and sell the energy discharged from the energy | ||
storage device to the same retail electric provider. | ||
(j) An energy storage facility described by Subsection (h) | ||
may not be used to offer or sell electric energy or ancillary | ||
services except for sales to the retail electric provider that | ||
serves the transmission and distribution utility's energy storage | ||
facility when needed to ensure reliable service to retail | ||
customers. | ||
(k) A transmission and distribution utility that owns or | ||
operates an energy storage facility in accordance with Subsection | ||
(h) is not a power generation company. | ||
(l) The commission shall adopt rules establishing criteria: | ||
(1) for agreements under Subsection (a), which must | ||
include the requirements of Subsections (b)-(f); and | ||
(2) for ownership and operation of energy storage | ||
facilities by transmission and distribution utilities under | ||
Subsection (h), including the recovery of associated costs. | ||
SECTION 3. The Public Utility Commission of Texas shall | ||
adopt rules required under Section 35.153, Utilities Code, as added | ||
by this Act, as soon as practicable after the effective date of this | ||
Act. | ||
SECTION 4. This Act takes effect September 1, 2019. |