Harrison Grid Bill’s First Deadline Lands After The 2026 Election

The text as introduced · 898 words

By: Harrison
H.B. No. 4577

A BILL TO BE ENTITLED

AN ACT

relating to the reliability of the ERCOT power grid.

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

SECTION 1. Section 39.1591, Utilities Code, is amended to

read as follows:

Sec. 39.1591. REPORT ON DISPATCHABLE AND NON-DISPATCHABLE

GENERATION FACILITIES. Not later than December 1 of each year, the

commission shall file a report with the legislature that:

(1) includes:

(A) the estimated annual costs incurred by

load-serving entities and generation facilities under this

subchapter associated with backing up dispatchable and

non-dispatchable electric generation facilities to guarantee that

a firm amount of electric energy will be available to the ERCOT

power grid; and

(B) as calculated by the independent system

operator, the cumulative annual costs that have been incurred in

the ERCOT market to facilitate the transmission of dispatchable and

non-dispatchable electricity to load and to interconnect

transmission level loads, including a statement of the total

cumulative annual costs and of the cumulative annual costs incurred

for each type of activity described by this paragraph; [ and ]

(2) documents the status of the implementation of this

subchapter, including whether the rules and protocols adopted to

implement this subchapter have materially improved the

reliability, resilience, and transparency of the electricity

market ; and

(3) recommends any additional legislative measures

necessary to ensure that market signals are adequate to preserve

existing dispatchable generation and incentivize the construction

of new dispatchable generation capacity sufficient to meet the

reliability requirements adopted under Section 39.159 for at least

five years from the date of the report .

SECTION 2. Section 39.1592, Utilities Code, is amended to

read as follows:

Sec. 39.1592. GENERATION RELIABILITY REQUIREMENTS. (a)

This section applies only to an electric generation facility in the

ERCOT power region that is subject to [ for which ] a standard

generator interconnection agreement, [ is signed on or after

January 1, 2027, that ]has been in operation for at least one year,

and [ that ] is not a self-generator.

(a-1) For the purposes of this section, a generation

facility is considered to be non-dispatchable if the facility's

output is controlled primarily by forces outside of human control.

(b) Not later than December 1 of each year, an owner or

operator of a non-dispatchable [ an electric ] generation facility [ ,

other than a battery energy storage resource, ] shall demonstrate to

the commission the ability of the facility to ensure that during at

least 95 hours of the highest 100 net load hours to occur in the next

calendar year the facility's hourly availability factor, as

determined under Subsection (b-1), will equal or exceed the

facility's expected availability factor, as determined under

Subsection (b-2).

(b-1) The commission shall determine a non-dispatchable

generation facility's hourly availability factor by dividing the

facility's hourly average generation by the facility's installed

capacity.

(b-2) The commission shall determine a non-dispatchable

generation facility's expected availability factor by calculating

the average generation of the facility, divided by the facility's

installed capacity, during the highest 100 net load hours each

calendar year in an average of two or more immediately preceding

calendar years, [ owner or operator's portfolio to operate or be

available to operate when called on for dispatch at or above the

seasonal average generation capability during the times of highest

reliability risk, as determined by the commission, due to low

operation reserves, ] as determined by the commission.

(b-3) The owner or operator may [ must be allowed to ] meet

the performance requirements described by this section

[ subsection ] only by operating, constructing, or acquiring

resources that are eligible to act as ancillary service reserves

according to the protocols of the independent organization

certified for the ERCOT power region under Section 39.151

[ supplementing or contracting with on-site or off-site resources,

including battery energy storage resources. The commission shall

determine the average generation capability based on expected

resource availability and seasonal-rated capacity on a standalone

basis ].

(c) The commission shall require the independent

organization certified under Section 39.151 for the ERCOT power

region to:

(1) enforce the requirements of this section

[ Subsection (b) ] by imposing financial penalties, as determined by

the commission, for failing to comply with the performance

requirements described by this section [ that subsection ]; and

(2) provide financial incentives, as determined by the

commission, for exceeding the performance requirements described

by this section [ that subsection ].

(d) The independent organization certified under Section

39.151 for the ERCOT power region may not impose penalties under

Subsection (c):

(1) for resource unavailability due to planned

maintenance outages or transmission outages; or

(2) on resources that are already subject to

performance obligations [ during the highest reliability risk

hours ] under the day-ahead market rules or other ancillary or

reliability services established by the commission or the

independent organization[ ; or

[ (3) during hours outside a baseline established by

the commission that includes morning and evening ramping periods ].

(e) The commission by rule may establish an ancillary

service market or a separate reliability service to implement this

section.

SECTION 3. The owner or operator of a generation facility to

which Section 39.1592(b), Utilities Code, as amended by this Act,

applies shall make the first demonstration required by that section

not later than December 1, 2026.

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