HB1603 - Relating to the authority of the Public Utility Commission of Texas to ensure the independent organization certified for the ERCOT power region has adequate reserve power to prevent blackout conditions.

  89R3502 ANG-F     By: Rosenthal H.B. No. 1603       A BILL TO BE ENTITLED   AN ACT   relating to the authority of the Public Utility Commission of Texas   to ensure the independent organization certified for the ERCOT   power region has adequate reserve power to prevent blackout   conditions.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 39.159, Utilities Code, is amended by   adding Subsections (f) and (g) to read as follows:           (f)     The commission by rule shall develop a process for   procuring emergency reserve power generation capacity, in addition   to ancillary and reliability services procured under Subsections   (b) and (d), as necessary to prevent blackout conditions caused by   shortages of generated power in the ERCOT power region.   The rules   must provide:                 (1)     parameters for estimating the amount of emergency   reserve power generation capacity necessary to prevent blackout   conditions; and                 (2)     mechanisms for equitably sharing the costs of   making the reserve capacity available and the costs of generated   power provided to prevent blackout conditions.           (g)     In accordance with rules adopted under Subsection (f),   the independent organization certified under Section 39.151 for the   ERCOT power region shall adopt procedures and enter contracts as   necessary to ensure the availability of a defined amount of   emergency reserve power generation capacity the organization may   call on to prevent blackouts caused by shortages of generated   power.   Before the independent organization calls on the emergency   reserve power generation capacity to prevent blackout conditions,   the organization shall use all other sources of power and demand   reduction available in accordance with commission rules adopted   under this section.          SECTION 2.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.