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Relating to the use of electric energy storage facilities in the ERCOT power region.
No significant fiscal implication to the State is anticipated.
SB 1941 would provide guidance regarding the ownership and deployment of battery storage devices in the ERCOT market. This bill would allow a transmission and distribution utility, with PUC approval, to contract with a power generation company to provide electric energy from an electric energy storage facility to ensure reliable service to distribution customers, contingent on use of such facility being more cost-effective than construction or modification of traditional distribution facilities. Before entering into such a contract, a transmission and distribution utility must issue a request for proposals for use of an electric energy storage facility to meet the utility's reliability needs.
This bill would also limit the authority of a power generation company that owns or operates an electric energy storage facility subject to a contract under this bill's provisions to sell electric energy or ancillary services through use of the facility to the extent that the company reserves capacity as required by the contract, and would prohibit such a company from discharging the facility for reliability purposes unless directed by the applicable transmission and distribution facility.
A regulatory authority would be required to review a contract between the utility and a power generation company, and the utility would have the burden of proof to establish that the costs of the contract are reasonable and necessary.
Texas Action is neutral on SB 1941 because it does not affect our liberty principles.