King Bill Caps Utility Backup Generators At Five Megawatts

The text as introduced · 638 words

89R6242 CS-D

By: King
S.B. No. 231

A BILL TO BE ENTITLED

AN ACT

relating to temporary emergency energy facilities.

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

SECTION 1. Section 39.918, Utilities Code, is amended by

amending Subsections (d) and (f) and adding Subsections (f-1),

(f-2), and (f-3) to read as follows:

(d) A facility [ Facilities ] described by Subsection (b)(1):

(1) must be operated in isolation from the bulk power

system; [ and ]

(2) may not be included in independent system

operator:

(A) locational marginal pricing calculations;

(B) pricing; or

(C) reliability models ;

(3) must be:

(A) mobile;

(B) capable of being moved without a permit

required for superheavy, oversized, overweight, or overlength

equipment, commodities, or vehicles under Subtitle E, Title 7,

Transportation Code; and

(C) capable of generating electric energy within

three hours of being connected to a demand source; and

(4) must have a maximum generation capacity of not

more than five megawatts .

(f) A transmission and distribution utility shall[ , when

reasonably practicable, ] use a competitive bidding process to lease

facilities under Subsection (b)(1).

(f-1) A transmission and distribution utility may not enter

into a lease under Subsection (b)(1) unless:

(1) the commission first approves the lease in a rate

proceeding or a separate contested case hearing; or

(2) the lease includes a provision that allows

alteration of the lease based on commission order or rule.

(f-2) Notwithstanding Subsections (f) and (f-1)(1), a

transmission and distribution utility may enter into a lease under

Subsection (b)(1) without competitive bidding or prior commission

approval if:

(1) the transmission and distribution utility lacks

the leased generating capacity necessary to aid in restoring power

to the utility's customers during a significant power outage; and

(2) the amount of leased generating capacity does not

significantly exceed the amount of megawatts necessary to restore

electric service to the utility's customers during a significant

power outage.

(f-3) A transmission and distribution utility that enters

into a lease in the manner provided by Subsection (f-2) shall

provide documentation to justify the amount of leased generating

capacity during the first base rate proceeding after the date the

lease begins.

SECTION 2. (a) Not later than the 30th day after the

effective date of this Act, the Public Utility Commission of Texas

shall initiate a proceeding under Chapter 36, Utilities Code, to

review the rates of a transmission and distribution utility,

including the rate of return on investment established in the

commission's final order in the utility's most recent base rate

proceeding, that:

(1) leased a facility to provide temporary emergency

electric energy under Section 39.918, Utilities Code, before the

effective date of this Act; and

(2) did not deploy the facility to provide emergency

electric energy to the utility's customers during a significant

power outage that occurred during a major disaster declared by the

president of the United States under the Robert T. Stafford

Disaster Relief and Emergency Assistance Act (42 U.S.C. Section

5121 et seq.) in 2024.

(b) If, during the proceeding initiated under Subsection

(a) of this section, the Public Utility Commission of Texas

determines that any rate charged or cost incurred by the

transmission and distribution utility is unreasonable or not

prudent based on a failure to deploy a leased facility as described

by Subsection (a) of this section or based on any other factor, the

commission shall:

(1) revise the utility's rate of return on investment

accordingly; or

(2) order the utility to refund to customers any

amount improperly recovered.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.