Bill Text: TX SB415 | 2021-2022 | 87th Legislature | Engrossed
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: Slight Partisan Bill (Republican 4-2)
Status: (Passed) 2021-06-14 - Effective on 9/1/21 [SB415 Detail]
Download: Texas-2021-SB415-Engrossed.html
Bill Title: Relating to use of electric energy storage facilities in the ERCOT power region.
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Passed) 2021-06-14 - Effective on 9/1/21 [SB415 Detail]
Download: Texas-2021-SB415-Engrossed.html
By: Hancock | S.B. No. 415 |
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relating to 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. This subchapter | ||
applies only to the ownership or operation of electric energy | ||
storage equipment or facilities in the ERCOT power region that are | ||
intended to: | ||
(1) 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; or | ||
(2) provide reliable delivery of electric energy to | ||
distribution customers. | ||
SECTION 2. Subchapter E, Chapter 35, Utilities Code, is | ||
amended by adding Section 35.153 to read as follows: | ||
Sec. 35.153. CONTRACTS FOR ELECTRIC ENERGY STORAGE FOR | ||
RELIABILITY SERVICES. (a) A transmission and distribution | ||
utility, with prior approval of the commission, may contract with a | ||
power generation company to provide electric energy from an | ||
electric energy storage facility to ensure reliable service to | ||
distribution customers. | ||
(b) The commission may not authorize ownership of an | ||
electric energy storage facility by a transmission and distribution | ||
utility. | ||
(c) Before entering into a contract under Subsection (a), | ||
the transmission and distribution utility must issue a request for | ||
proposals for use of an electric energy storage facility to meet the | ||
utility's reliability needs. | ||
(d) A transmission and distribution utility may enter into a | ||
contract under Subsection (a) only if use of an electric energy | ||
storage facility is more cost-effective than construction or | ||
modification of traditional distribution facilities. | ||
(e) A transmission and distribution utility may not enter | ||
into a contract under Subsection (a) that reserves an amount of | ||
capacity exceeding the amount of capacity required to ensure | ||
reliable service to the utility's distribution customers. | ||
(f) A power generation company that owns or operates an | ||
electric energy storage facility subject to a contract under | ||
Subsection (a) may sell electric energy or ancillary services | ||
through use of the facility only to the extent that the company | ||
reserves capacity as required by the contract. | ||
(g) A power generation company that owns or operates an | ||
electric energy storage facility subject to a contract under | ||
Subsection (a) may not discharge the facility to satisfy the | ||
contract's requirements unless directed by the transmission and | ||
distribution utility. | ||
(h) A contract under Subsection (a) must require a power | ||
generation company that owns or operates an electric energy storage | ||
facility to reimburse a transmission and distribution utility for | ||
the cost of an administrative penalty assessed against the utility | ||
for a violation caused by the facility's failure to meet the | ||
requirements of the agreement. | ||
(i) In establishing the rates of a transmission and | ||
distribution utility, a regulatory authority shall review a | ||
contract between the utility and a power generation company under | ||
Subsection (a). The utility has the burden of proof to establish | ||
that the costs of the contract are reasonable and necessary. The | ||
regulatory authority may authorize a transmission and distribution | ||
utility to include a reasonable return on the payments required | ||
under the contract only if the contract terms satisfy the relevant | ||
accounting standards for a capital lease or finance lease. | ||
(j) The total amount of electric energy storage capacity | ||
reserved by contracts under Subsection (a) may not exceed 100 | ||
megawatts. The commission shall by rule establish the maximum | ||
amount of electric energy storage capacity allotted to each | ||
transmission and distribution utility. | ||
(k) The commission shall adopt rules as necessary to | ||
implement this section and establish criteria for approving | ||
contracts under Subsection (a). | ||
SECTION 3. The Public Utility Commission of Texas shall | ||
adopt rules required by 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, 2021. |