Anchía Bill Plugs ERCOT Into The Neighbors’ Grids

The text as introduced · 1,136 words

89R8612 JXC-D

By: Anchía
H.B. No. 4091

A BILL TO BE ENTITLED

AN ACT

relating to the interconnection of the ERCOT power grid to grids

outside the ERCOT power region.

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

SECTION 1. Section 31.002(5), Utilities Code, is amended to

read as follows:

(5) "Electric Reliability Council of Texas" or "ERCOT"

means :

(A) the area in Texas served by electric

utilities, municipally owned utilities, and electric cooperatives

that is not synchronously interconnected with electric utilities

outside the state ; or

(B) if the commission approves a synchronous

interconnection under Chapter 39A, an area designated by the

commission by rule as necessary to administer this subtitle .

SECTION 2. Subtitle B, Title 2, Utilities Code, is amended

by adding Chapter 39A to read as follows:

CHAPTER 39A. INTERCONNECTION OF FACILITIES IN ERCOT TO GRIDS

OUTSIDE ERCOT POWER REGION

Sec. 39A.0101. UTILITY AND COOPERATIVE AUTHORITY.

Notwithstanding any other law, a transmission and distribution

utility, municipally owned utility, or electric cooperative that

transmits or distributes power purchased at wholesale in the ERCOT

power region may construct, own, and operate facilities as

necessary to:

(1) interconnect transmission facilities inside the

ERCOT power region to transmission facilities outside of the ERCOT

power region; and

(2) purchase power at wholesale from outside of the

ERCOT power region.

Sec. 39A.0102. SALE AUTHORITY. Notwithstanding any other

law, an electric utility, electric cooperative, municipally owned

utility, or power generation company operating in this state may

sell electric energy at wholesale for retail sale inside or outside

the ERCOT power region for the purposes of this chapter.

Sec. 39A.0103. COMMISSION AUTHORITY. (a) The commission

may request any federal approval necessary for the synchronous or

nonsynchronous interconnection of a facility described by Section

39A.0101.

(b) The commission may require the independent organization

certified for the ERCOT power region under Section 39.151 to

approve the synchronous or nonsynchronous interconnection of a

facility described by Section 39A.0101 unless otherwise provided by

federal law or the commission or the independent organization

determines that the interconnection poses a significant and

imminent risk to public health and safety.

(c) The commission may provide technical and administrative

assistance to a transmission and distribution utility, municipally

owned utility, or electric cooperative seeking to construct, own,

or operate a facility described by Section 39A.0101.

(d) The commission shall implement, and shall provide to the

Federal Energy Regulatory Commission, the Electric Reliability

Organization as defined by 16 U.S.C. Section 824o, and the

independent organization certified under Section 39.151 for the

ERCOT power region any assistance necessary to implement, a

reliability standard for the purposes of this chapter that requires

minimum total transfer capabilities between the ERCOT power region

and other regions as follows:

(1) 4.3 gigawatts between the area under functional

control of the independent organization and the area under

functional control of the Southwest Power Pool;

(2) 2.5 gigawatts between the area under functional

control of the independent organization and the area under

functional control of Midcontinent Independent System Operator;

and

(3) 2.6 gigawatts between the area under functional

control of the independent organization and the Western

Interconnection.

(e) The commission shall designate one or more entities

described by Section 39A.0101 to site and construct new

transmission facilities or modify existing transmission facilities

to achieve the minimum total transfer capabilities described by

Subsection (d) or delegate authority to the independent

organization certified under Section 39.151 for the ERCOT power

region to designate the entities.

(f) Notwithstanding any other law, the commission may

require an entity designated under Subsection (e) to make requests,

obtain approvals, enter into contracts, and construct or modify

facilities as necessary to interconnect a transmission facility

with a facility outside of ERCOT.

SECTION 3. Sections 37.051(c-1), (c-2), and (c-3),

Utilities Code, are redesignated as Section 39A.0104, Utilities

Code, and amended to read as follows:

Sec. 39A.0104. CERTIFICATES OF CONVENIENCE AND NECESSITY.

(a) A transmission and distribution utility, [ (c-1)

Notwithstanding any other provision of this title except Section

11.009, and except as provided by Subsection (c-2), a person,

including an electric utility or ] municipally owned utility, or

electric cooperative may not interconnect a facility to the ERCOT

transmission grid that enables additional power to be imported into

or exported out of the ERCOT power grid unless the utility or

cooperative [ person ] obtains a certificate from the commission in

the manner provided by Chapter 37 and this chapter stating that the

interconnection does not pose a significant and imminent risk to

public health and safety [ public convenience and necessity requires

or will require the interconnection ].

(b) In the case of a conflict between Chapter 37 and this

chapter, this chapter prevails.

(c) Sections 37.056(c)(1) and (2) and (d) do not apply to an

application for a certificate described by Subsection (a).

(d) The commission may approve an application for a

certificate described by Subsection (a) unless otherwise provided

by federal law or the commission determines that granting the

application poses a significant and imminent risk to public health

and safety.

(e) The transmission and distribution utility, municipally

owned utility, or electric cooperative [ person ] must apply to the

commission for a [ the ] certificate described by Subsection (a) not

later than the 180th day before the date the utility or cooperative

[ person ] seeks any order from the Federal Energy Regulatory

Commission related to the interconnection.

(f) [ The commission shall apply Section 37.056 in

considering an application under this subsection. In addition, the

commission must determine that the application is consistent with

the public interest before granting the certificate. The commission

may adopt rules necessary to implement this subsection. This

subsection does not apply to a facility that is in service on

December 31, 2014.

[ (c-2) ] The commission, not later than the 185th day after

the date the application is filed, shall approve an application

[ filed under Subsection (c-1) ] for a facility that is to be

constructed under an interconnection agreement appended to an offer

of settlement approved in a final order of the Federal Energy

Regulatory Commission that was issued in Docket No. TX11-01-001 on

or before December 31, 2014, directing physical connection between

the ERCOT and SERC regions under Sections 210, 211, and 212 of the

Federal Power Act (16 U.S.C. Sections 824i, 824j, and 824k). In

approving the application, the commission may prescribe reasonable

conditions to protect the public interest that are consistent with

the final order of the Federal Energy Regulatory Commission.

(g) [ (c-3) ] Nothing in this section [ Subsection (c-1) or

(c-2) ] is intended to restrict the authority of the commission or

the independent organization certified under Section 39.151 for the

ERCOT power region to adopt rules or protocols of general

applicability.

SECTION 4. This Act takes effect September 1, 2025.