Bring Your Own Power Plant, Jump The Grid Hookup Line

The text as introduced · 541 words

2025S0155-1 02/28/25

By: Darby
H.B. No. 3970

A BILL TO BE ENTITLED

AN ACT

relating to electricity planning for large loads.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter D, Chapter 39, Utilities Code, is

amended by adding Section 39.169 to read as follows:

Sec. 39.169. LARGE LOAD INTERCONNECTION; RELIABILITY

PROGRAM. (a) In this section, "behind-the-meter generation" means

a new generation facility on the retail customer's side of the

meter.

(b) The commission by rule shall require the independent

organization certified under Section 39.151 for the ERCOT power

region to develop and implement an interconnection program to

provide an expedited interconnection process for operators of large

loads who agree to cease consuming energy from the power grid

through deployment of their behind-the-meter generation when

directed to by the independent organization. The program must be

available only to large loads that are a facility at a single site

with an aggregate peak power demand that exceeds a demand threshold

established by the independent organization. The threshold must be

at least 75 megawatts unless the independent organization

determines that a lower threshold will better ensure reliability in

the ERCOT power region.

(c) The program must require the independent organization

certified under Section 39.151 for the ERCOT power region and the

relevant electric cooperative, municipally owned utility, or

transmission and distribution utility to give priority to a large

load in the interconnection queue participating in the program.

(d) The program must provide that:

(1) an interconnection application for a

participating large load with behind-the-meter generation that

agrees to offer the energy generated by the behind-the-meter

generation to the power grid at times directed by the independent

organization or reduce its energy consumption from the power grid

to a minimum level established by the independent organization will

be given priority over other interconnection applications that are

pending before the independent organization and the relevant

electric cooperative, municipally owned utility, or transmission

and distribution utility, including any applications from other

participating large loads without behind-the-meter generation;

(2) if applicable, the generator interconnection

application for a participating large load's behind-the-meter

generation will be processed in parallel with the load

interconnection application; and

(3) an applicant for participation in the program may

choose:

(A) if authorized by the independent

organization and the relevant electric cooperative, municipally

owned utility, or transmission and distribution utility, to

contract with a vendor approved by the relevant electric

cooperative, municipally owned utility, or transmission and

distribution utility or by the independent organization to perform

all studies required by the relevant electric cooperative,

municipally owned utility, or transmission and distribution

utility before the approval of the interconnection application;

(B) to procure equipment required for the

interconnection in accordance with technical specifications

provided by the relevant electric cooperative, municipally owned

utility, or transmission and distribution utility; and

(C) to construct interconnection facilities in

accordance with technical and other requirements of the relevant

electric cooperative, municipally owned utility, or transmission

and distribution utility.

(e) The program shall provide that studies required by an

electric cooperative, municipally owned utility, or transmission

and distribution utility before the approval of an interconnection

application for a participating large load may evaluate the load as

non-firm.

SECTION 2. This Act takes effect September 1, 2025.