Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS › Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS › Subchapter H - ELECTRICAL PLANNING › Division 1 - RENEWABLE ENERGY RESOURCES AND USE OF NATURAL GAS › Section 25.174 - Competitive Renewable Energy Zones

Current through Reg. 49, No. 28; July 12, 2024
(a)
					 Competitive Renewable Energy Zone Transmission Projects. In considering an
					 application for a certificate of convenience and necessity (CCN) or CCN
					 amendment for the addition of a second 345-kilovolt (kV) circuit on the
					 Alibates-AJ Swope-Windmill-Ogallala-Tule Canyon transmission line, the
					 commission is not required to consider the factors under Public Utility
					 Regulatory Act (PURA) §37.056(c)(1) and (2).
(b) Designation of Competitive Renewable
					 Energy Zones. The designation of Competitive Renewable Energy Zones (CREZs)
					 pursuant to PURA §39.904(g) shall be made through one or more
					 contested-case proceedings initiated by commission staff, for which the
					 commission shall establish a procedural schedule. The commission shall consider
					 the need for proceedings to determine CREZs in 2007.
(1) Commission staff shall initiate a
					 contested case proceeding upon receiving the information required by paragraph
					 (2) of this subsection. Any interested entity that participates in the
					 contested case may nominate a region for CREZ designation. An entity may submit
					 any evidence it deems appropriate in support of its nomination, but it shall
					 include information prescribed in paragraph (2)(A) - (C) of this
					 subsection.
(2) By December 1,
					 2006, the Electric Reliability Council of Texas (ERCOT) shall provide to the
					 commission a study of the wind energy production potential statewide, and of
					 the transmission constraints that are most likely to limit the deliverability
					 of electricity from wind energy resources. ERCOT shall consult with other
					 regional transmission organizations, independent organizations, independent
					 system operators, or utilities in its analysis of regions of Texas outside the
					 ERCOT power region. At a minimum, the study submitted by ERCOT shall include:
(A) a map and geographic descriptions of
					 regions that can reasonably accommodate at least 1,000 megawatts (MW) of new
					 wind-powered generation resources;
(B) an estimate of the maximum generating
					 capacity in MW that each zone can reasonably accommodate and an estimate of the
					 zone's annual production potential;
(C) a description of the improvements
					 necessary to provide transmission service to the region, a preliminary estimate
					 of the cost, and identification of the transmission service provider (TSP) or
					 TSPs whose existing transmission facilities would be directly
					 affected;
(D) an analysis of any
					 potential combinations of zones that, in ERCOT's estimation, would result in
					 significantly greater efficiency if developed together; and
(E) the amount of generating capacity already
					 in service in the zone, the amount not in service but for which interconnection
					 agreements (IAs) have been executed, and the amount under study for.
(3) The Texas Department of Parks
					 and Wildlife may provide an analysis of wildlife habitat that may be affected
					 by renewable energy development in any candidate zone, and may submit
					 recommendations for mitigating harmful impacts on wildlife and
					 habitat.
(4) In determining whether
					 to designate an area as a CREZ and the number of CREZs to designate, the
					 commission shall consider:
(A) whether
					 renewable energy resources and suitable land areas are sufficient to develop
					 generating capacity from renewable energy technologies;
(B) the level of financial commitment by
					 generators; and
(C) any other
					 factors considered appropriate by the commission as provided by PURA,
					 including, but not limited to, the estimated cost of constructing transmission
					 capacity necessary to deliver to electric customers the electric output from
					 renewable energy resources in the candidate zone, and the estimated benefits of
					 renewable energy produced in the candidate zone.
(5) The commission shall issue a final order
					 within six months of the initiation by commission staff of a CREZ proceeding,
					 unless it finds good cause to extend the deadline. For each new CREZ it orders,
					 the commission shall specify:
(A) the
					 geographic extent of the CREZ;
(B)
					 major transmission improvements necessary to deliver to customers the energy
					 generated by renewable resources in the CREZ, in a manner that is most
					 beneficial and cost-effective to the customers, including new and upgraded
					 lines identified by voltage level and a general description of where any new
					 lines will interconnect to the existing grid;
(C) an estimate of the maximum generating
					 capacity that the commission expects the transmission ordered for the CREZ to
					 accommodate; and
(D) any other
					 requirement considered appropriate by the commission as provided by
					 PURA.
(6) The commission
					 may direct a utility outside of ERCOT to file a plan for the development of a
					 CREZ in or adjacent to its service area. The plan shall include the maximum
					 generating capacity that each potential CREZ can reasonably accommodate;
					 identify the transmission improvements needed to provide service to each CREZ;
					 and include the cost of the improvements and a timetable for complying with all
					 applicable federal transmission tariff requirements.