Relating to electricity pricing rules and operating procedures that eliminate or compensate for market distortion caused by certain federal tax credits.

89(R) HB 3374 - Introduced version - Bill Text

89R4479 CXP-F

By: Patterson

H.B. No. 3374

A BILL TO BE ENTITLED

AN ACT

relating to electricity pricing rules and operating procedures that

eliminate or compensate for market distortion caused by certain

federal tax credits.

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

SECTION 1. Subchapter D, Chapter 39, Utilities Code, is

amended by adding Section 39.171 to read as follows:

Sec.

39.171.

MARKET DISTORTION RESPONSE. (a)

Notwithstanding any other provision of this chapter, the commission

and the ERCOT independent system operator shall adopt rules,

operating procedures, and protocols to eliminate or compensate for

any distortion in electricity pricing in the ERCOT power region

caused by a federal tax credit provided under 26 U.S.C. Section 45.

(b)

Rules, operating procedures, and protocols adopted

under this section must ensure that costs imposed on the system by

the sale of electricity that is eligible for a federal tax credit

provided under 26 U.S.C. Section 45, including costs of maintaining

sufficient capacity to serve load at the summer peak demand caused

by the loss of new investment from below-market prices, are paid by

the parties that impose the costs.

(c)

In conjunction with adopting rules, operating

procedures, and protocols under this section, the commission and

the ERCOT independent system operator shall eliminate any rules,

operating procedures, or protocols that attempt to adjust

electricity prices to reflect the value of reserves at different

reserve levels based on the probability of reserves falling below

the minimum contingency level and the value of lost load.

SECTION 2. This Act takes effect September 1, 2025.