Bill Summary – FastDemocracy

   
      88(3) HB 185 - Introduced version - Bill Text
      
		By:  Harrison
            H.B.  No.  185
         
      Statutes affected: 
Introduced:  ()

               A BILL TO BE ENTITLED
            
               AN ACT
            
            relating to allocating the cost of ancillary and reliability 
         
            services procured in the ERCOT power region.
         
                          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         
                          SECTION  1.    The legislature finds that:
         
                                      (1)    the welfare of the residents and the economic 
         
            security of the state depend on the reliability and resilience of 
         
            the electric power supply;
         
                                      (2)    the increased deployment of non-dispatchable wind 
         
            and solar electricity generation has exposed the bulk power system 
         
            to significant weather dependence and will continue to erode the 
         
            reliability and resilience of the grid unless reforms are 
         
            instituted to more adequately value reliability and resilience;
         
                                      (3)    the current system of grid operation and 
         
            regulatory oversight has failed to ensure the reliability and 
         
            resilience of the grid for a number of reasons, including:
         
                                                  (A)    market rules developed by the Electric 
         
            Reliability Council of Texas and overseen by the Public Utility 
         
            Commission of Texas have so far failed to adequately value 
         
            reliability and resilience of the grid; and
         
                                                  (B)    direct and indirect subsidies for wind and 
         
            solar electricity generation have led to overinvestment in those 
         
            forms of electricity generation and undervaluation of 
         
            dispatchable, reliable, and resilient power plants, which has 
         
            resulted in the retirement of several such plants, inhibited the 
         
            addition of such plants, and inhibited weatherization expenditures 
         
            to increase the reliability and resilience of the grid;
         
                                      (5)    several recent federal policy announcements 
         
            mandating and incentivizing further deployment of significant 
         
            non-dispatchable electricity sources such as wind and solar without 
         
            providing sufficient resilient backup power will impose 
         
            reliability and resilience penalties on the bulk power system 
         
            relied on by the residents and industries of the state; and
         
                                      (6)    it is essential that the legislature immediately 
         
            provide further direction to the Public Utility Commission of Texas 
         
            regrading reliability standards for the ERCOT market and new 
         
            mechanisms to address the reliability and resilience shortcomings 
         
            of the grid.
         
                          SECTION  2.    Chapter 39, Utilities Code, is amended by adding 
         
            Subchapter M to read as follows:
         
            SUBCHAPTER M.   RELIABILITY STANDARD FOR NON-DISPATCHABLE 
         
            GENERATORS
         
                          Sec.  39.601.    DEFINITIONS.  In this subchapter:
         
                                      (1)    "Dispatchable generator" means a source of 
         
            electricity that:
         
                                                  (A)    is available for use on demand;
         
                                                  (B)    may be dispatched on the request of a power 
         
            grid operator;
         
                                                  (C)    may have its power output adjusted, according 
         
            to market need; and
         
                                                  (D)    does not derive its power output primarily 
         
            from sources that inherently change from minute to minute, such as 
         
            those dependent on local weather conditions to be present.
         
                                      (2)    "Expected availability factor" means the average 
         
            generation of a non-dispatchable generator, divided by its 
         
            installed capacity, during the highest 100 net load hours each year 
         
            in an average of two or more immediately preceding calendar years, 
         
            as determined by the commission.
         
                                      (3)    "Firming requirement" is a requirement for a 
         
            non-dispatchable generator to ensure that its hourly availability 
         
            factor during at least 95 hours of the highest 100 net load hours 
         
            equals or exceeds its expected availability factor by continuing to 
         
            operate, constructing, or acquiring through a power purchase 
         
            agreement or other means sufficient resources that are eligible to 
         
            act as ancillary service reserves according to ERCOT protocols.
         
                                      (4)    "Hourly availability factor" means the hourly 
         
            average generation of a non-dispatchable generator, divided by its



	A BILL TO BE ENTITLED
	AN ACT
	relating to allocating the cost of ancillary and reliability
	services procured in the ERCOT power region.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. The legislature finds that:
	(1) the welfare of the residents and the economic
	security of the state depend on the reliability and resilience of
	the electric power supply;
	(2) the increased deployment of non-dispatchable wind
	and solar electricity generation has exposed the bulk power system
	to significant weather dependence and will continue to erode the
	reliability and resilience of the grid unless reforms are
	instituted to more adequately value reliability and resilience;
	(3) the current system of grid operation and
	regulatory oversight has failed to ensure the reliability and
	resilience of the grid for a number of reasons, including:
	(A) market rules developed by the Electric
	Reliability Council of Texas and overseen by the Public Utility
	Commission of Texas have so far failed to adequately value
	reliability and resilience of the grid; and
	(B) direct and indirect subsidies for wind and
	solar electricity generation have led to overinvestment in those
	forms of electricity generation and undervaluation of
	dispatchable, reliable, and resilient power plants, which has
	resulted in the retirement of several such plants, inhibited the
	addition of such plants, and inhibited weatherization expenditures
	to increase the reliability and resilience of the grid;
	(5) several recent federal policy announcements
	mandating and incentivizing further deployment of significant
	non-dispatchable electricity sources such as wind and solar without
	providing sufficient resilient backup power will impose
	reliability and resilience penalties on the bulk power system
	relied on by the residents and industries of the state; and
	(6) it is essential that the legislature immediately
	provide further direction to the Public Utility Commission of Texas
	regrading reliability standards for the ERCOT market and new
	mechanisms to address the reliability and resilience shortcomings
	of the grid.
	SECTION 2. Chapter 39, Utilities Code, is amended by adding
	Subchapter M to read as follows:
	SUBCHAPTER M. RELIABILITY STANDARD FOR NON-DISPATCHABLE
	GENERATORS
	Sec. 39.601. DEFINITIONS. In this subchapter:
	(1) "Dispatchable generator" means a source of
	electricity that:
	(A) is available for use on demand;
	(B) may be dispatched on the request of a power
	grid operator;
	(C) may have its power output adjusted, according
	to market need; and
	(D) does not derive its power output primarily
	from sources that inherently change from minute to minute, such as
	those dependent on local weather conditions to be present.
	(2) "Expected availability factor" means the average
	generation of a non-dispatchable generator, divided by its
	installed capacity, during the highest 100 net load hours each year
	in an average of two or more immediately preceding calendar years,
	as determined by the commission.
	(3) "Firming requirement" is a requirement for a
	non-dispatchable generator to ensure that its hourly availability
	factor during at least 95 hours of the highest 100 net load hours
	equals or exceeds its expected availability factor by continuing to
	operate, constructing, or acquiring through a power purchase
	agreement or other means sufficient resources that are eligible to
	act as ancillary service reserves according to ERCOT protocols.
	(4) "Hourly availability factor" means the hourly
	average generation of a non-dispatchable generator, divided by its