Relating to the interconnection of a facility in the ERCOT power region to certain other facilities.

89(R) SB 1978 - Engrossed version - Bill Text

By: Hall, Hughes

S.B. No. 1978

Kolkhorst

A BILL TO BE ENTITLED

AN ACT

relating to the interconnection of a facility in the ERCOT power

region to certain other facilities.

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

SECTION 1. Section 37.051, Utilities Code, is amended by

amending Subsections (c), (c-1), (c-2), and (c-3) and adding

Subsection (c-4) to read as follows:

(c) Notwithstanding any other provision of this chapter

except Subsection (c-1)
[
, including Subsection (a)
], an electric

cooperative is not required to obtain a certificate of public

convenience and necessity for the construction, installation,

operation, or extension of any generating facilities or necessary

interconnection facilities.

(c-1)
In this subsection, "facility"

means a facility that

consumes, generates, transmits, or distributes electricity.

Notwithstanding any other provision of this title except Section

11.009, and except as provided by Subsection
(c-3)
[
(c-2)
],
an

electric cooperative,
[
a person, including
] an electric utility
, a

[
or
] municipally owned utility
, or another person
[
,
] may not

interconnect a facility
in
[
to
] the ERCOT
power region to a facility

located wholly or partly outside of this state or to a facility that

is connected directly or indirectly with a facility located wholly

or partly outside of this state,
[
transmission grid that enables

additional power to be imported into or exported out of the ERCOT

power grid
] unless
:

(1)

the proposed interconnection will not subject the

ERCOT power region to additional federal control or jurisdiction;

(2)

the commission first determines that the proposed

interconnection is in the public interest after considering:

(A)

the technical attributes of the proposed

interconnection;

(B)

the expected costs to the public to install,

operate, and maintain the interconnection;

(C)

the results of relevant criteria adopted by

the commission under Section 37.056(d);

(D)

the results of a reliability assessment

conducted by the independent organization certified under Section

39.151 for the ERCOT power region; and

(E)

any other information the commission

considers appropriate;

(3)

the cooperative, utility, or person applies for a

public interest determination from the commission under

Subdivision (2)
[
the person obtains a certificate from the

commission stating that public convenience and necessity requires

or will require the interconnection. The person must apply for the

certificate
] not later than the 180th day before the date the

cooperative, utility, or
person seeks any order from the Federal

Energy Regulatory Commission related to the
proposed

interconnection
; and

(4)

after the cooperative, utility, or person obtains

any order from the Federal Energy Regulatory Commission related to

the proposed interconnection, the commission grants a certificate

stating that public convenience or necessity requires or will

require the interconnection
.

(c-2)
The commission shall apply Section 37.056 in

considering an application under
Subsection (c-1)
[
this

subsection
]. [
In addition, the commission must determine that the

application is consistent with the public interest before granting

the certificate.
] The commission may adopt rules necessary to

implement
Subsection (c-1)
[
this subsection
].
Subsection (c-1)

[
This subsection
] does not apply to a facility that is in service on

December 31, 2014.

(c-3)
[
(c-2)
] The commission, not later than the 185th day

after the date the application is filed, shall approve an

application filed under Subsection (c-1) for a facility that is to

be constructed under an interconnection agreement appended to an

offer of settlement approved in a final order of the Federal Energy

Regulatory Commission that was issued in Docket No. TX11-01-001 on

or before December 31, 2014, directing physical connection between

the ERCOT and SERC regions under Sections 210, 211, and 212 of the

Federal Power Act (16 U.S.C. Sections 824i, 824j, and 824k). In

approving the application, the commission may prescribe reasonable

conditions to protect the public interest that are consistent with

the final order of the Federal Energy Regulatory Commission.

(c-4)
[
(c-3)
] Nothing in Subsection (c-1)
,
[
or
] (c-2)
, or

(c-3)
is intended to restrict the authority of the commission or the

independent organization certified under Section 39.151 for the

ERCOT power region to adopt rules or protocols of general

applicability.

SECTION 2. The changes in law made by this Act in Section

37.051, Utilities Code, apply only to an interconnection made on or

after the effective date of this Act. An interconnection made

before the effective date of this Act is governed by the law in

effect when the interconnection was made, and the former law is

continued in effect for that purpose.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.