Reynolds Bill Ties ERCOT To Outside Grids And Federal Rules

The text as introduced · 957 words

89R3501 JXC-D

By: Reynolds
H.B. No. 838

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. 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) access transmission service from outside of the

ERCOT power region; and

(2) purchase power at wholesale from outside of the

ERCOT power region.

Sec. 39A.0102. COMMISSION AUTHORITY. (a) The commission

may request any federal approval necessary for the interconnection

of a facility described by Section 39A.0101.

(b) The commission shall require the independent

organization certified for the ERCOT power region under Section

39.151 to approve the 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.

Sec. 39A.0103. SYNCHRONOUS AND NON-SYNCHRONOUS

INTERCONNECTIONS. (a) This chapter applies to synchronous and

non-synchronous interconnections.

(b) Unless otherwise provided by federal law, the

commission shall approve an application for a certificate of

convenience and necessity submitted under Section 39A.0104 by a

transmission and distribution utility, municipally owned utility,

or electric cooperative for a facility that would synchronously

interconnect to a facility outside the ERCOT power region if the

application complies with all applicable provisions of Chapter 37

and this chapter.

(c) Not later than September 1, 2027, the commission shall

identify transmission facilities in ERCOT that may be synchronously

interconnected with transmission facilities outside of ERCOT for

the purpose of allowing federal regulation of transmission service

and wholesale power sales in ERCOT. Notwithstanding any other law,

the commission shall require a transmission and distribution

utility, municipally owned utility, or electric cooperative that

owns a transmission facility identified by the commission to make

requests, obtain approvals, enter into contracts, and construct

facilities as necessary to synchronously interconnect the facility

with a transmission facility outside of ERCOT. This subsection

expires August 31, 2031.

SECTION 2. 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 described by

Section 39A.0101 [ 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 shall 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 3. This Act takes effect September 1, 2025.