The bill, S.B. No. 1942, introduces a new section, 39.169, to the Utilities Code, focusing on electricity planning for large loads in Texas. It mandates the independent organization certified for the ERCOT power region to create an expedited interconnection program for large load operators who agree to reduce their energy consumption from the grid by utilizing behind-the-meter generation when directed. The program is specifically designed for facilities with an aggregate peak power demand exceeding a threshold of at least 75 megawatts, although a lower threshold may be established to ensure reliability.

Additionally, the bill stipulates that participating large loads will receive priority in the interconnection queue and outlines the process for interconnection applications, including provisions for parallel processing of applications and options for applicants to contract with approved vendors for necessary studies. The program also allows for the evaluation of loads as non-firm during the required studies before interconnection approval. This legislation is set to take effect on September 1, 2025.

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