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A BILL TO BE ENTITLED
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AN ACT
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relating to temporary emergency energy facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.918, Utilities Code, is amended by |
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amending Subsections (d) and (f) and adding Subsections (f-1), |
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(f-2), and (f-3) to read as follows: |
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(d) A facility [Facilities] described by Subsection (b)(1): |
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(1) must be operated in isolation from the bulk power |
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system; [and] |
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(2) may not be included in independent system |
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operator: |
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(A) locational marginal pricing calculations; |
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(B) pricing; or |
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(C) reliability models; |
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(3) must be: |
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(A) mobile; |
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(B) capable of being moved without a permit |
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required for superheavy, oversized, overweight, or overlength |
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equipment, commodities, or vehicles under Subtitle E, Title 7, |
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Transportation Code; and |
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(C) capable of generating electric energy within |
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three hours of being connected to a demand source; and |
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(4) must have a maximum generation capacity of not |
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more than five megawatts. |
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(f) A transmission and distribution utility shall[, when |
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reasonably practicable,] use a competitive bidding process to lease |
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facilities under Subsection (b)(1). |
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(f-1) A transmission and distribution utility may not enter |
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into a lease under Subsection (b)(1) unless: |
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(1) the commission first approves the lease in a rate |
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proceeding or a separate contested case hearing; or |
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(2) the lease includes a provision that allows |
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alteration of the lease based on commission order or rule. |
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(f-2) Notwithstanding Subsections (f) and (f-1)(1), a |
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transmission and distribution utility may enter into a lease under |
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Subsection (b)(1) without competitive bidding or prior commission |
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approval if: |
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(1) the transmission and distribution utility lacks |
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the leased generating capacity necessary to aid in restoring power |
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to the utility's customers during a significant power outage; and |
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(2) the amount of leased generating capacity does not |
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significantly exceed the amount of megawatts necessary to restore |
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electric service to the utility's customers during a significant |
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power outage. |
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(f-3) A transmission and distribution utility that enters |
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into a lease in the manner provided by Subsection (f-2) shall |
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provide documentation to justify the amount of leased generating |
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capacity during the first base rate proceeding after the date the |
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lease begins. |
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SECTION 2. (a) Not later than the 30th day after the |
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effective date of this Act, the Public Utility Commission of Texas |
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shall initiate a proceeding under Chapter 36, Utilities Code, to |
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review the rates of a transmission and distribution utility, |
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including the rate of return on investment established in the |
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commission's final order in the utility's most recent base rate |
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proceeding, that: |
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(1) leased a facility to provide temporary emergency |
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electric energy under Section 39.918, Utilities Code, before the |
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effective date of this Act; and |
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(2) did not deploy the facility to provide emergency |
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electric energy to the utility's customers during a significant |
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power outage that occurred during a major disaster declared by the |
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president of the United States under the Robert T. Stafford |
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Disaster Relief and Emergency Assistance Act (42 U.S.C. Section |
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5121 et seq.) in 2024. |
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(b) If, during the proceeding initiated under Subsection |
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(a) of this section, the Public Utility Commission of Texas |
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determines that any rate charged or cost incurred by the |
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transmission and distribution utility is unreasonable or not |
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prudent based on a failure to deploy a leased facility as described |
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by Subsection (a) of this section or based on any other factor, the |
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commission shall: |
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(1) revise the utility's rate of return on investment |
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accordingly; or |
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(2) order the utility to refund to customers any |
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amount improperly recovered. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |