H.B. No. 3970 introduces a new section, 39.169, to the Utilities Code, focusing on the interconnection and operation of large loads within the ERCOT power region. The bill defines key terms such as "behind-the-meter generation" and "flexible load," and mandates the establishment of a program by the commission to expedite the interconnection process for large loads. This program will prioritize interconnection for large loads that have received approval for expedited processing, ensuring that these loads are processed in parallel with any associated generation facilities. Additionally, the bill outlines requirements for large loads to qualify for expedited processing, including the installation of behind-the-meter generation and the potential for alternative qualifications based on peak demand.

The legislation also stipulates that flexible loads receiving expedited processing must contribute to load-shedding obligations during energy emergencies and that the independent organization overseeing ERCOT will consider actions taken under this section as reliability deployments. Furthermore, the commission is tasked with establishing financial penalties for large load operators who fail to comply with load reduction directives. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: ()
House Committee Report: ()
Engrossed: ()