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A BILL TO BE ENTITLED
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AN ACT
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relating to the allocation of congestion rents in the ERCOT |
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wholesale market. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 39, Utilities Code, is |
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amended by adding Section 39.159 to read as follows: |
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Sec. 39.159. CONGESTION RENT IN ERCOT WHOLESALE MARKET. |
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(a) In this section, "congestion rent" means a pricing element that |
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is: |
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(1) added to the average market price of a generation |
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product; and |
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(2) based on the flow of power between two discrete |
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locations. |
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(b) The commission by rule shall establish a system to |
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annually prioritize and allocate congestion rents accrued on the |
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grid in the ERCOT wholesale market to transmission and distribution |
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utilities for congestion relief projects. |
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(c) A power generation company may not receive congestion |
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rent accrued on the grid in the ERCOT wholesale market. |
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(d) The rules must: |
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(1) establish a process for a transmission and |
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distribution utility to submit to the independent organization |
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certified under Section 39.151 for ERCOT an application to receive |
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congestion rent to offset the cost of a proposed congestion relief |
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project and for the staff of the organization to evaluate the |
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applications; |
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(2) establish criteria for congestion relief projects |
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for which a transmission and distribution utility is eligible to |
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receive congestion rent; |
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(3) require collected congestion rents to be remitted |
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to the independent organization certified under Section 39.151 for |
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ERCOT to be held by the organization in escrow, by zone, in separate |
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accounts according to zone; |
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(4) establish a system for the commission to |
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prioritize and allocate congestion rents for congestion relief |
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projects; and |
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(5) prohibit a transmission and distribution utility |
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from recovering through allocated congestion rent a capital |
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expenditure the utility has already recovered through its rates. |
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SECTION 2. Not later than January 1, 2016, the Public |
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Utility Commission of Texas shall adopt rules as necessary to |
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implement Section 39.159, Utilities Code, as added by this Act. |
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SECTION 3. This Act takes effect September 1, 2015. |