reglab/statecodes huggingface dataset:
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.1513. Ercot Board Selection Committee

Sec. 39.1513.  ERCOT BOARD SELECTION COMMITTEE.  (a)  The ERCOT board selection committee is composed of:
(1)  one member appointed by the governor;
(2)  one member appointed by the lieutenant governor; and
(3)  one member appointed by the speaker of the house of representatives.
(b)  A person may not be appointed as a member of the committee unless the person is a resident of this state.
(c)  A member of the committee is not entitled to compensation for serving as a member but is entitled to reimbursement for actual and necessary expenses incurred in performing the official duties of office.
(d)  The committee shall select members eligible under Section 39.151 to serve on the governing body of an independent organization certified under that section for the ERCOT power region and shall designate the chair and vice chair of the governing body from those members.
(e)  The ERCOT board selection committee shall retain an outside consulting firm to help select members of the governing body under Subsection (d).
Added by Acts 2021, 87th Leg., R.S., Ch. 425 (S.B. 2), Sec. 4, eff. June 8, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.1514. Commission Directives to Independent Organization

Sec. 39.1514.  COMMISSION DIRECTIVES TO INDEPENDENT ORGANIZATION.  (a)   The commission may not use a verbal directive to direct an independent organization certified under Section 39.151 to take an official action.  The commission may direct the organization to take an official action only through:
(1)  a contested case;
(2)  rulemaking; or
(3)  a memorandum or written order adopted by a majority vote.
(a-1)  The commission must use a contested case or rulemaking process to direct an independent organization certified under Section 39.151 to take an official action that will create a new cost or fee, increase an existing cost or fee, or impose significant operational obligations on an entity.
(b)  The commission by rule shall:
(1)  specify the types of directives the commission may issue through a contested case, rulemaking, memorandum, or written order, in accordance with Subsection (a-1);
(2)  require that proposed commission directives be included as an item on a commission meeting agenda and require the commission to allow members of the public an opportunity to comment on the agenda item; and
(3)  establish a reasonable timeline for the release before a commission meeting of discussion materials relevant to  any proposed commission directives included as agenda items for that meeting.
(c)  Notwithstanding another provision of this section, the commission may use a verbal directive to direct an independent organization to take an official action in an urgent or emergency situation that poses an imminent threat to public health, public safety, or the reliability of the power grid.  If the commission uses a verbal directive, the commission shall provide written documentation of the directive to the independent organization not later than 72 hours after the urgent or emergency situation ends.  The commission by rule shall establish criteria for determining whether a situation is urgent or an emergency under this subsection and establish a process by which the commission will issue directives to the independent organization under this subsection.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 17, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.152. Qualifying Power Regions

Sec. 39.152.  QUALIFYING POWER REGIONS.  (a)  The commission shall certify a power region if:
(1)  a sufficient number of interconnected utilities in the power region fall under the operational control of an independent organization as described by Section 39.151;
(2)  the power region has a generally applicable tariff that guarantees open and nondiscriminatory access for all users to transmission and distribution facilities in the power region as provided by Section 39.203;  and
(3)  no person owns and controls more than 20 percent of the installed generation capacity located in or capable of delivering electricity to a power region, as determined according to Section 39.154.
(b)  In determining whether a power region not entirely within the state meets the requirements of this section, the commission shall consider the extent to which the available transmission facilities limit the delivery of electricity from generators located outside the state to areas of the power region within the state.
(c)  For a power region outside of ERCOT, the requirements of Subsection (a)(2) shall be deemed to have been met if power aggregating to approximately 50,000 megawatts can be delivered to the portion of the power region that is in this state through the payment of not more than one transmission tariff.
(d)  For a power region outside of ERCOT, a power generation company that is affiliated with an electric utility may elect to demonstrate that it meets the requirements of Subsection (a)(3) by showing that it does not own and control more than 20 percent of the installed capacity in a geographic market that includes the power region, using the guidelines, standards, and methods adopted by the Federal Energy Regulatory Commission.
(e)  In a power region outside of ERCOT, if customer choice is introduced before the requirements of Subsection (a) are met, an affiliated retail electric provider may not compete for retail customers in any area of the power region that is within this state and outside of the affiliated transmission and distribution utility's certificated service area unless the affiliated power generation company makes a commitment to maintain and does maintain rates that are based on cost of service for any electric cooperative or municipally owned utility that was a wholesale customer on January 1, 1999, and was purchasing power at rates that were based on cost of service.  This subsection requires a power generation company to sell power at rates that are based on cost of service, notwithstanding the expiration of a contract for that service, until the requirements of Subsection (a) are met.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.154. Limitation of Ownership of Installed Capacity

Sec. 39.154.  LIMITATION OF OWNERSHIP OF INSTALLED CAPACITY.  (a)  Beginning on the date of introduction of customer choice, a power generation company may not own and control more than 20 percent of the installed generation capacity located in, or capable of delivering electricity to, a power region.
(b)  In a power region not entirely within the state, the commission may waive or modify the requirement in Subsection (a) on a finding of good cause.
(c)  In determining the percentage shares of installed generation capacity under this section, the commission shall combine capacity owned and controlled by a power generation company and any entity that is affiliated with that power generation company within the power region, reduced by the installed generation capacity of those facilities that are made subject to capacity auctions under Sections 39.153(a) and (d).
(d)  In this chapter, "installed generation capacity" means all potentially marketable electric generation capacity, including the capacity of:
(1)  generating facilities that are connected with a transmission or distribution system;
(2)  generating facilities used to generate electricity for consumption by the person owning or controlling the facility;  and
(3)  generating facilities that will be connected with a transmission or distribution system and operating within 12 months.
(e)  In determining the percentage shares of installed generation capacity owned and controlled by a power generation company under this section and Section 39.156, the commission shall, for purposes of calculating the numerator, reduce the installed generation capacity owned and controlled by that power generation company by the installed generation capacity of any "grandfathered facility" within an ozone nonattainment area as of September 1, 1999, for which that power generation company has commenced complying or made a binding commitment to comply with Section 39.264.  This subsection applies only to a power generation company that is affiliated with an electric utility that owned and controlled more than 27 percent of the installed generation capacity in the power region on January 1, 1999.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.155. Commission Assessment of Market Power

Sec. 39.155.  COMMISSION ASSESSMENT OF MARKET POWER.  (a)  Each person, municipally owned utility, electric cooperative, and river authority that owns generation facilities and offers electricity for sale in this state shall report to the commission its installed generation capacity, the total amount of capacity available for sale to others, the total amount of capacity under contract to others, the total amount of capacity dedicated to its own use, its annual wholesale power sales in the state, its annual retail power sales in the state, and any other information necessary for the commission to assess market power or the development of a competitive retail market in the state.  The commission shall by rule prescribe the nature and detail of the reporting requirements and shall administer those reporting requirements in a manner that ensures the confidentiality of competitively sensitive information.
(b)  Repealed by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 46(a)(3), eff. September 1, 2023.
(c)  Before the date of introduction of customer choice in a power region other than ERCOT, each electric utility owning transmission and distribution facilities in that region shall submit an annual report to the commission identifying existing and potential transmission and distribution constraints and system needs in the power region, alternatives for meeting system needs, and recommendations for meeting system needs as directed by the commission.
(d)  In a qualifying power region, the report required by Subsection (c) shall be submitted by the independent organization or organizations having authority over the power region or discrete areas thereof.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 19, eff. September 1, 2023.
Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 46(a)(3), eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.1591. Report on Dispatchable and Non-Dispatchable Generation Facilities

Sec. 39.1591.  REPORT ON DISPATCHABLE AND NON-DISPATCHABLE GENERATION FACILITIES.  Not later than December 1 of each year, the commission shall file a report with the legislature that:
(1)  includes:
(A)  the estimated annual costs incurred by load-serving entities under this subchapter associated with backing up dispatchable and non-dispatchable electric generation facilities to guarantee that a firm amount of electric energy will be available to the ERCOT power grid; and
(B)  as calculated by the independent system operator, the cumulative annual costs that have been incurred in the ERCOT market to facilitate the transmission of dispatchable and non-dispatchable electricity to load and to interconnect transmission level loads, including a statement of the total cumulative annual costs and of the cumulative annual costs incurred for each type of activity described by this paragraph; and
(2)  documents the status of the implementation of this subchapter, including whether the rules and protocols adopted to implement this subchapter have materially improved the reliability, resilience, and transparency of the electricity market.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 23, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.1592. Generation Reliability Requirements

Sec. 39.1592.  GENERATION RELIABILITY REQUIREMENTS.  (a) This section applies only to an electric generation facility in the ERCOT power region 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.
(b)  Not later than December 1 of each year, an owner or operator of an electric generation facility, other than a battery energy storage resource, shall demonstrate to the commission the ability of the owner or operator's portfolio to operate or be available to operate when called on for dispatch at or above the seasonal average generation capability during the times of highest reliability risk, as determined by the commission, due to low operation reserves, as determined by the commission.  The owner or operator must be allowed to meet the performance requirements described by this subsection by supplementing or contracting with on-site or off-site resources, including battery energy storage resources.  The commission shall determine the average generation capability based on expected resource availability and seasonal-rated capacity on a standalone basis.
(c)  The commission shall require the independent organization certified under Section 39.151 for the ERCOT power region to:
(1)  enforce the requirements of Subsection (b) by imposing financial penalties, as determined by the commission, for failing to comply with the performance requirements described by that subsection; and
(2)  provide financial incentives, as determined by the commission, for exceeding the performance requirements described by that subsection.
(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.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 23, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.1593. Cost Allocation of Reliability Services

Sec. 39.1593.  COST ALLOCATION OF RELIABILITY SERVICES.  (a)  The commission shall direct the independent organization certified under Section 39.151 for the ERCOT power region to evaluate with input from a technical advisory committee established under the bylaws of the independent organization that includes market participants whether allocating the costs of ancillary and reliability services, including those procured under Section 39.159, as added by Chapter 426 (S.B. 3), Acts of the 87th Legislature, Regular Session, 2021, using a methodology described by Subsection (b) would result in a net savings to consumers in the ERCOT power region compared to allocating all costs of ancillary and reliability services to load to ensure reliability.
(b)  The commission shall evaluate whether to allocate the cost of ancillary and reliability services:
(1)  on a semiannual basis among electric generation facilities and load-serving entities in proportion to their contribution to unreliability during the times of highest reliability risk due to low operating reserves by season, as determined by the commission based on a number of hours adopted by the commission for that season; or
(2)  using another method identified by the commission.
(c)  The evaluation must:
(1)  use historical ancillary and reliability services data;
(2)  consider the causes for ancillary services deployments; and
(3)  consider the design, procurement, and cost allocation of ancillary services required by Section 35.004(h).
(d)  Not later than December 1, 2026, the commission shall submit a report on the evaluation to the legislature.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 23, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.1595. Grid Reliability Legislative Oversight Committee

Sec. 39.1595.  GRID RELIABILITY LEGISLATIVE OVERSIGHT COMMITTEE.  (a)  In this section, "committee" means the Grid Reliability Legislative Oversight Committee established under this section.
(b)  The Grid Reliability Legislative Oversight Committee is created to oversee the commission's implementation of legislation related to the regulation of the electricity market in this state enacted by the 87th and 88th Legislatures.
(c)  The committee is composed of eight members as follows:
(1)  three members of the senate, appointed by the lieutenant governor;
(2)  three members of the house of representatives, appointed by the speaker of the house of representatives;
(3)  the chair of the committee of the senate having primary jurisdiction over matters relating to the generation of electricity; and
(4)  the chair of the committee of the house having primary jurisdiction over matters relating to the generation of electricity.
(d)  An appointed member of the committee serves at the pleasure of the appointing official.
(e)  The committee members described by Subsections (c)(3) and (4) serve as presiding co-chairs.
(f)  A member of the committee may not receive compensation for serving on the committee but is entitled to reimbursement for travel expenses incurred by the member while conducting the business of the committee as provided by the General Appropriations Act.
(g)  The committee shall meet at least twice each year at the call of either co-chair and shall meet at other times at the call of either co-chair, as that officer determines appropriate.
(h)  Chapter 551, Government Code, applies to the committee.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 23, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.160. Wholesale Pricing Procedures

Text of section as added by Acts 2021, 87th Leg., R.S., Ch. 426 (S.B. 3), Sec. 18
For text of section as added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 3, see other Sec. 39.160.
Sec. 39.160.  WHOLESALE PRICING PROCEDURES.  (a)  The commission by rule shall establish an emergency pricing program for the wholesale electric market.
(b)  The emergency pricing program must take effect if the high system-wide offer cap has been in effect for 12 hours in a 24-hour period after initially reaching the high system-wide offer cap.  The commission by rule shall determine the criteria for the emergency pricing program to cease.
(c)  The emergency pricing program may not allow an emergency pricing program cap to exceed any nonemergency high system-wide offer cap.
(d)  The commission by rule shall establish an ancillary services cap to be in effect during the period an emergency pricing program is in effect.
(e)  Any wholesale pricing procedure that has a low system-wide offer cap may not allow the low system-wide offer cap to exceed the high system-wide offer cap.
(f)  The commission shall review each system-wide offer cap program adopted by the commission, including the emergency pricing program, at least once every five years to determine whether to update aspects of the program.
(g)  The emergency pricing program must allow generators to be reimbursed for reasonable, verifiable operating costs that exceed the emergency cap.
Added by Acts 2021, 87th Leg., R.S., Ch. 426 (S.B. 3), Sec. 18, eff. June 8, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.161. Charges for Certain Market Participants

Sec. 39.161.  CHARGES FOR CERTAIN MARKET PARTICIPANTS.  Notwithstanding any other law, no default or uplift charge or repayment may be allocated to or collected from a market participant that:
(1)  otherwise would be subject to an uplift charge solely as a result of acting as a central counterparty clearinghouse in wholesale market transactions in the ERCOT power region; and
(2)  is regulated as a derivatives clearing organization, as defined by the Commodity Exchange Act (7 U.S.C. Section 1a).
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 3, eff. June 18, 2021.
Redesignated from Utilities Code, Section 39.159 by Acts 2023, 88th Leg., R.S., Ch. 768 (H.B. 4595), Sec. 22.003(b), eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.162. Default of Market Participant

Sec. 39.162.  DEFAULT OF MARKET PARTICIPANT.  (a) The commission shall require that all market participants pay or make provision for the full and prompt payment of amounts owed calculated solely according to the protocols in effect during the period of emergency to the independent organization certified under Section 39.151 for the ERCOT power region to qualify, or to continue to qualify, as a market participant in the ERCOT power region.
(b)  If a market participant has failed to fully repay all amounts calculated solely under the protocols in effect during the period of emergency of the independent organization certified under Section 39.151 for the ERCOT power region, the independent organization shall report the market participant as in default to the commission.  The commission may not allow the independent organization to accept the defaulting market participant's loads or generation for scheduling in the ERCOT power region, or allow the defaulting market participant to be a market participant in the ERCOT power region for any purpose, until all amounts owed to the independent organization by the market participant as calculated under the protocols are paid in full.
(c)  The commission and the independent organization certified under Section 39.151 for the ERCOT power region shall pursue collection in full of amounts owed to the independent organization by the defaulting market participant.
Added by Acts 2021, 87th Leg., R.S., Ch. 950 (S.B. 1580), Sec. 3, eff. June 18, 2021.
Redesignated from Utilities Code, Section 39.160 by Acts 2023, 88th Leg., R.S., Ch. 768 (H.B. 4595), Sec. 22.003(b), eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.163. Amounts Owed to Independent Organization by Market Participants

Sec. 39.163.  AMOUNTS OWED TO INDEPENDENT ORGANIZATION BY MARKET PARTICIPANTS.  (a)  The commission shall require that all market participants fully and promptly pay to the independent organization certified under Section 39.151 for the ERCOT power region all amounts owed to the independent organization, or provide for the full and prompt payment of those amounts owed,  which must be calculated solely according to the protocols of the independent organization in effect during the period of emergency and subject to the jurisdiction of the commission, to qualify, or to continue to qualify, as a market participant in the ERCOT power region.
(b)  The independent organization shall report to the commission that a market participant is in default for the failure to pay, or provide for the full and prompt payment of, all amounts owed to the independent organization as calculated in accordance with this section. The commission may not allow the defaulting market participant to continue to be a market participant in the ERCOT power region for any purpose or allow the independent organization to accept the defaulting market participant's loads or generation for scheduling in the ERCOT power region until all amounts owed to the independent organization by the market participant as calculated in this section are fully paid.
(c)  The commission and the independent organization shall pursue collection in full of amounts owed to the independent organization by any market participant to reduce the costs that would otherwise be borne by other market participants or their customers.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 4, eff. June 16, 2021.
Redesignated from Utilities Code, Section 39.159 by Acts 2023, 88th Leg., R.S., Ch. 768 (H.B. 4595), Sec. 22.003(c), eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.164. Audit of Independent Organization Certified for Ercot Power Region

Sec. 39.164.  AUDIT OF INDEPENDENT ORGANIZATION CERTIFIED FOR ERCOT POWER REGION.  (a)  The commission annually shall have an independent audit made of each independent organization certified under Section 39.151 for the ERCOT power region.
(b)  An audit under this section must examine:
(1)  the independent organization's financial condition, including the organization's budget and expenses, and the salaries of the organization's employees and board members; and
(2)  compliance of the independent organization's assets with all applicable commission standards.
(c)  Not later than the 60th day after the date an audit under this section is completed the commission shall:
(1)  publish the results of the audit on the commission's Internet website; and
(2)  submit the results of the audit to the state auditor and members of the standing committees of the legislature with primary jurisdiction over the commission.
Added by Acts 2021, 87th Leg., R.S., Ch. 73 (H.B. 2586), Sec. 1, eff. September 1, 2021.
Redesignated from Utilities Code, Section 39.159 by Acts 2023, 88th Leg., R.S., Ch. 768 (H.B. 4595), Sec. 22.003(d), eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.165. Grid Reliability Assessment

Sec. 39.165.  GRID RELIABILITY ASSESSMENT.  (a)  The independent organization certified under Section 39.151 for the ERCOT power region shall conduct a biennial assessment of the ERCOT power grid to assess the grid's reliability in extreme weather scenarios.
(b)  Each assessment must:
(1)  consider the impact of different levels of thermal and renewable generation availability; and
(2)  recommend transmission projects that may increase the grid's reliability in extreme weather scenarios.
Added by Acts 2021, 87th Leg., R.S., Ch. 876 (S.B. 1281), Sec. 3, eff. September 1, 2021.
Redesignated from Utilities Code, Section 39.159 by Acts 2023, 88th Leg., R.S., Ch. 768 (H.B. 4595), Sec. 22.003(e), eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.166. Reliability Plan for Regions With Rapid Electrical Load Growth

Text of section as added by Acts 2023, 88th Leg., R.S., Ch. 892 (H.B. 5066), Sec. 3
For text of section as added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 24(b), see other Sec. 39.166.
Sec. 39.166.  RELIABILITY PLAN FOR REGIONS WITH RAPID ELECTRICAL LOAD GROWTH.  (a)  The commission shall direct the independent organization certified under Section 39.151 for the ERCOT power region to:
(1)  identify each region in which transmission capacity is insufficient to meet the region's existing and forecasted electrical load, as reasonably determined by the certificated transmission service provider; and
(2)  develop a reliability plan to serve existing and forecasted electrical load in the identified region.
(b)  The commission shall develop a plan to implement each reliability plan adopted under Subsection (a) to ensure timely development and approval of necessary transmission service improvements.
Added by Acts 2023, 88th Leg., R.S., Ch. 892 (H.B. 5066), Sec. 3, eff. June 13, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.166. Electric Industry Report

Text of section as added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 24
For text of section as added by Acts 2023, 88th Leg., R.S., Ch. 892 (H.B. 5066), Sec. 3, see other Sec. 39.166.
Sec. 39.166.  ELECTRIC INDUSTRY REPORT.  (a)  Not later than January 15 of each odd-numbered year, the commission, in consultation with the independent organization certified under Section 39.151 for the ERCOT power region, shall prepare and submit to the legislature an electric industry report.
(b)  Each electric industry report submitted under this section must:
(1)  identify existing and potential transmission and distribution constraints and system needs within the ERCOT power region, alternatives for meeting system needs, and recommendations for meeting system needs;
(2)  summarize key findings from:
(A)  the grid reliability assessment conducted under Section 39.165; and
(B)  the report required by Section 39.9112;
(3)  outline basic information regarding the electric grid and market in this state, including generation capacity, customer demand, and transmission capacity currently installed on the grid and projected in the future; and
(4)  be presented in plain language that is readily understandable by a person with limited knowledge of the electric industry.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 24(b), eff. September 1, 2023.
Text of section as added by Acts 2023, 88th Leg., R.S., Ch. 892 (H.B. 5066), Sec. 3
For text of section as added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 24(b), see other Sec. 39.167.
For expiration of this section, see Subsection (c).
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.167. Reliability Plan for Permian Basin

Sec. 39.167.  RELIABILITY PLAN FOR PERMIAN BASIN.  (a) Not later than January 30, 2024, the commission shall direct the independent organization certified under Section 39.151 for the ERCOT power region to develop a reliability plan under Section 39.166 for the Permian Basin region.
(b)  The plan must:
(1)  address extending transmission service to areas where mineral resources have been found;
(2)  address increasing available capacity to meet forecasted load; and
(3)  provide available infrastructure to reduce interconnection times in areas without access to transmission service.
(c)  This section expires September 1, 2025.
Added by Acts 2023, 88th Leg., R.S., Ch. 892 (H.B. 5066), Sec. 3, eff. June 13, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.167. Conflicts of Interest Report

Text of section as added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 24
For text of section as added by Acts 2023, 88th Leg., R.S., Ch. 892 (H.B. 5066), Sec. 3, see other Sec. 39.167.
Sec. 39.167.  CONFLICTS OF INTEREST REPORT.  The commission and the independent organization certified under Section 39.151 for the ERCOT power region annually shall review statutes, rules, protocols, and bylaws that apply to conflicts of interest for commissioners and for members of the governing body of the independent organization and submit to the legislature a report on the effects the statutes, rules, protocols, and bylaws have on the ability of the commission and the independent organization to fulfill their duties.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 24(b), eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter D. Market Structure › Section 39.168. Retail Sales Report

Sec. 39.168.  RETAIL SALES REPORT.  (a)  Each retail electric provider that offers electricity for sale shall report to the commission:
(1)  its annual retail sales in this state;
(2)  the annual retail sales of its affiliates by number of customers, kilowatts per hour sold, and revenue from kilowatts per hour sold by customer class; and
(3)  any other information the commission requires relating to affiliations between retail electric providers.
(b)  The commission by rule shall prescribe the nature and detail of the reporting requirements.  The commission may accept information reported under other law to satisfy the requirements of this section.  Information reported under this section is confidential and not subject to disclosure if the information is competitively sensitive information.  The commission shall administer the reporting requirements in a manner that ensures the confidentiality of competitively sensitive information.
Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 24(b), eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter E. Price Regulation After Competition › Section 39.204. Tariffs for Open Access

Sec. 39.204.  TARIFFS FOR OPEN ACCESS.  Each transmission and distribution utility shall file a tariff implementing the open access rules with the commission or the federal regulatory authority having jurisdiction over the transmission and distribution service of the utility not later than the 90th day before the date customer choice is offered by that utility.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter E. Price Regulation After Competition › Section 39.205. Regulation of Costs Following Freeze Period

Sec. 39.205.  REGULATION OF COSTS FOLLOWING FREEZE PERIOD.  At the conclusion of the freeze period, any remaining costs associated with nuclear decommissioning obligations continue to be subject to cost of service rate regulation and shall be included as a nonbypassable charge to retail customers.  The commission may adopt rules necessary to ensure that money for decommissioning is prudently collected, managed, and spent for its intended purpose and that money that remains unspent after decommissioning is completed is returned to retail customers.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 121 (S.B. 1464), Sec. 2, eff. September 1, 2005.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter F. Recovery of Stranded Costs Through Competition Transition Charge › Section 39.251. Definitions

Sec. 39.251.  DEFINITIONS.  In this subchapter:
(1)  "Above market purchased power costs" means wholesale demand and energy costs that a utility is obligated to pay under an existing purchased power contract to the extent the costs are greater than the purchased power market value.
(2)  "Existing purchased power contract" means a purchased power contract in effect on January 1, 1999, including any amendments and revisions to that contract resulting from litigation initiated before January 1, 1999.
(3)  "Generation assets" means all assets associated with the production of electricity, including generation plants, electrical interconnections of the generation plant to the transmission system, fuel contracts, fuel transportation contracts, water contracts, lands, surface or subsurface water rights, emissions-related allowances, and gas pipeline interconnections.
(4)  "Market value" means, for nonnuclear assets and certain nuclear assets, the value the assets would have if bought and sold in a bona fide third-party transaction or transactions on the open market under Section 39.262(h) or, for certain nuclear assets, as described by Section 39.262(i), the value determined under the method provided by that subsection.
(5)  "Purchased power market value" means the value of demand and energy bought and sold in a bona fide third-party transaction or transactions on the open market and determined by using the weighted average costs of the highest three offers from the market for purchase of the demand and energy available under the existing purchased power contracts.
(6)  "Retail stranded costs" means that part of net stranded cost associated with the provision of retail service.
(7)  "Stranded cost" means the positive excess of the net book value of generation assets over the market value of the assets, taking into account all of the electric utility's generation assets, any above market purchased power costs, and any deferred debit related to a utility's discontinuance of the application of Statement of Financial Accounting Standards No. 71 ("Accounting for the Effects of Certain Types of Regulation") for generation-related assets if required by the provisions of this chapter.  For purposes of Section 39.262, book value shall be established as of December 31, 2001, or the date a market value is established through a market valuation method under Section 39.262(h), whichever is earlier, and shall include stranded costs incurred under Section 39.263.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter F. Recovery of Stranded Costs Through Competition Transition Charge › Section 39.254. Use of Revenues for Utilities With Stranded Costs

Sec. 39.254.  USE OF REVENUES FOR UTILITIES WITH STRANDED COSTS.  This subchapter provides a number of tools to an electric utility to mitigate stranded costs.  Each electric utility that was reported by the commission to have positive "excess costs over market" (ECOM), denoted as the "base case" for the amount of stranded costs before full retail competition in 2002 with respect to its Texas jurisdiction, in the April 1998 Report to the Texas Senate Interim Committee on Electric Utility Restructuring entitled "Potentially Strandable Investment (ECOM) Report:  1998 Update," must use these tools to reduce the net book value of, otherwise referred to as "accelerate" the cost recovery of, its stranded costs each year.  Any positive difference under the report required by Section 39.257(b) shall be applied to the net book value of generation assets.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter F. Recovery of Stranded Costs Through Competition Transition Charge › Section 39.255. Use of Revenues for Utilities With No Stranded Costs

Sec. 39.255.  USE OF REVENUES FOR UTILITIES WITH NO STRANDED COSTS.  (a)  An electric utility that does not have stranded costs described by Section 39.254 shall be permitted to use any positive difference under the report required by Section 39.257(b) on capital expenditures to improve or expand transmission or distribution facilities, or on capital expenditures to improve air quality, as approved by the commission.  Any such capital expenditures shall be made in the calendar year immediately following the year for which the report required by Section 39.257 is calculated.  The capital expenditures shall be reflected in any future proceeding under this chapter to set transmission or distribution rates as a reduction to the utility's transmission and distribution invested capital, as approved by the commission.
(b)  To the extent that positive differences under the report required by Section 39.257(b) are not used for capital expenditures, the amounts shall be flowed back to the electric utility's Texas jurisdictional customers through the power cost recovery factor.
(c)  This section applies only to the use of positive differences under the report required by Section 39.257(b) for each year during the freeze period.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter F. Recovery of Stranded Costs Through Competition Transition Charge › Section 39.256. Option to Redirect Depreciation

Sec. 39.256.  OPTION TO REDIRECT DEPRECIATION.  (a)  For the calendar years of 1998, 1999, 2000, and 2001, an electric utility described by Section 39.254 may redirect all or a part of the depreciation expense relating to transmission and distribution assets to its net generation plant assets.
(b)  The electric utility shall report a decision under Subsection (a) to the commission and any other applicable regulatory authority.
(c)  Any adjustments made to the book value of transmission and distribution assets or the creation of any related regulatory assets resulting from the redirection under this section shall be accepted and applied by the commission for establishing net invested capital and transmission and distribution rates for retail customers in all future proceedings.
(d)  Notwithstanding Subsection (c), the design of post-freeze-period retail rates may not:
(1)  shift the allocation of responsibility for stranded costs;
(2)  include the adjusted costs in wholesale transmission and distribution rates;  or
(3)  apply the adjustments for the purpose of establishing net invested capital and transmission and distribution rates for wholesale customers.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter F. Recovery of Stranded Costs Through Competition Transition Charge › Section 39.257. Annual Report

Sec. 39.257.  ANNUAL REPORT.  (a)  Beginning with the 1999 calendar year, each electric utility shall file a report with the commission not later than 90 days after the end of each year during the freeze period under a schedule and a format determined by the commission.
(b)  The report shall identify any positive difference between annual revenues, reduced by the amount of annual revenues under Sections 36.203 and 36.205, the revenues received under the interutility billing process as adopted by the commission to implement Sections 35.004, 35.006, and 35.007, revenues associated with transition charges as defined by Section 39.302, and annual costs.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter F. Recovery of Stranded Costs Through Competition Transition Charge › Section 39.259. Annual Report: Determination of Invested Capital

Sec. 39.259.  ANNUAL REPORT:  DETERMINATION OF INVESTED CAPITAL.  (a)  For the purposes of determining invested capital in each annual report, the net plant in service, regulatory assets, and deferred federal income taxes shall be updated each year, and generation-related invested capital shall be reduced by the amount of securitization under Sections 39.201(i) and 39.262(c) to the extent otherwise included in invested capital.
(b)  Capital additions to a plant in an amount less than 1-1/2 percent of the electric utility's net plant in service on December 31, 1998, less plant items previously excluded by the commission, for each of the years 1999 through 2001 are presumed prudent.
(c)  All other items in invested capital shall be as approved in the electric utility's last rate proceeding before the commission.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter F. Recovery of Stranded Costs Through Competition Transition Charge › Section 39.260. Use of Generally Accepted Accounting Principles

Sec. 39.260.  USE OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.  (a)  The definition and identification of invested capital and other terms used in this subchapter and Subchapter G that affect the net book value of generation assets and the treatment of transactions performed under Section 35.035 and other transactions authorized by this title or approved by the regulatory authority that affect the net book value of generation assets during the freeze period shall be treated in accordance with generally accepted accounting principles as modified by regulatory accounting rules generally applicable to utilities.
(b)  The principles and criteria described by Subsection (a), including the criteria for applicability of Statement of Financial Accounting Standards No. 71 ("Accounting for the Effects of Certain Types of Regulation"), shall be applied for purposes of this subchapter as they existed on January 1, 1999.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.