The bill amends the Utilities Code to facilitate the interconnection of the Electric Reliability Council of Texas (ERCOT) power grid with external grids. It redefines ERCOT to include areas that may be designated by the commission if a synchronous interconnection is approved. Additionally, it introduces Chapter 39A, which grants transmission and distribution utilities, municipally owned utilities, and electric cooperatives the authority to construct and operate facilities necessary for accessing transmission services and purchasing power from outside the ERCOT region. The commission is empowered to request federal approvals for these interconnections and must approve applications unless they pose a significant risk to public health and safety.

Furthermore, the bill establishes a process for obtaining certificates of convenience and necessity for interconnections, ensuring that utilities must apply for these certificates and comply with specific provisions. It also stipulates that the commission must identify transmission facilities suitable for synchronous interconnection by September 1, 2027, and mandates that utilities take necessary actions to facilitate these interconnections. The bill aims to enhance the operational flexibility of the ERCOT power grid while ensuring safety and regulatory compliance.

Statutes affected:
Introduced: Utilities Code 31.002 (Utilities Code 31)