Bill Text: TX SB415 | 2021-2022 | 87th Legislature | Enrolled
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-Enrolled.html
| 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. | ||
| ______________________________ | ______________________________ | |
| President of the Senate | Speaker of the House | |
| I hereby certify that S.B. No. 415 passed the Senate on | ||
| April 9, 2021, by the following vote: Yeas 31, Nays 0. | ||
| ______________________________ | ||
| Secretary of the Senate | ||
| I hereby certify that S.B. No. 415 passed the House on | ||
| May 26, 2021, by the following vote: Yeas 131, Nays 17, one | ||
| present not voting. | ||
| ______________________________ | ||
| Chief Clerk of the House | ||
| Approved: | ||
| ______________________________ | ||
| Date | ||
| ______________________________ | ||
| Governor | ||
