SB715 - Relating to reliability requirements for certain electric generation facilities.

      By: Sparks, et al. S.B. No. 715     A BILL TO BE ENTITLED   AN ACT   relating to reliability requirements for certain electric   generation facilities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 39.1592(a) and (d), Utilities Code, are   amended to read as follows:          (a)  This section applies only to an electric generation   facility in the ERCOT power region that is subject to [ for which ] a   standard generator interconnection agreement , [ is signed on or   after January 1, 2027, that ] has been in operation for at least one   year, and [ that ] is not a self-generator.          (d)  The independent organization certified under Section   39.151 for the ERCOT power region may not impose penalties under   Subsection (c):                (1)  for resource unavailability due to planned   maintenance outages or transmission outages;                (2)  on resources that are already subject to   performance obligations during the highest reliability risk hours   under the day-ahead market rules or other ancillary or reliability   services established by the commission or the independent   organization; [ or ]                (3)  during hours outside a baseline established by the   commission that includes morning and evening ramping periods ;                 (4)     on resources that demonstrate the ability to   operate when called upon for dispatch for 24 continuous hours at or   above the seasonal average generation capability through the   resource's own generation capability or through a contract with an   on-site or off-site resource, including a battery energy storage   resource; or                 (5)     on resources with dual but separate grid   interconnections that provide dispatchable generation to the ERCOT   power region .          SECTION 2.  Sections 52(b) and (c), Chapter 410 (H.B. 1500),   Acts of the 88th Legislature, Regular Session, 2023, are repealed.          SECTION 3.  (a) The Public Utility Commission of Texas shall   adopt rules as necessary to implement Section 39.1592, Utilities   Code, as amended by this Act, not later than January 1, 2027.          (b)  Notwithstanding Subsection (a) of this section, an   owner or operator of an electric generation facility that is   subject to a power purchase agreement entered into before the   effective date of this Act is not required to comply with the   performance requirements described by Section 39.1592(b),   Utilities Code, until the expiration of the agreement as it exists   on the effective date of this Act.          SECTION 4.  (a)  The Public Utility Commission of Texas shall   consider the use of a settlement price cap, a fixed reliability fee,   and other methods of imposing penalties under Section   39.1592(c)(1), Utilities Code.  The Public Utility Commission of   Texas and the independent organization certified under Section   39.151, Utilities Code, for the ERCOT power region shall:                (1)  consider rebating penalties collected under   Section 39.1592 directly to consumers or redirecting a portion of   the collected penalties toward reliability incentives; and                (2)  for the purposes of Subdivision (1) of this   subsection, prioritize rebates of penalties or redirection of   penalties in a manner the commission determines will provide the   maximum financial benefit to consumers while still ensuring that   the reliability needs of the ERCOT power region are met and   premature retirements of dispatchable generation facilities are   avoided.          (b)  Notwithstanding Section 39.1592(c), Utilities Code, the   Public Utility Commission of Texas may allow the financial   penalties and incentives required by that subsection to be adopted   in a phased manner over multiple years to mitigate market   disruptions that the commission determines would result in net   increased costs to consumers.          SECTION 5.  This Act takes effect September 1, 2025.