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Relating to the responsibility for ancillary services costs incurred for the operation of intermittent generation resources.
No significant fiscal implication to the State is anticipated.
SB 1278 would require intermittent power generators, i.e. solar and wind generators, to pay for ancillary services from dispatchable generators when directed to do so by the PUC, for the purpose of increasing power generation liability.
Texas Action supports SB 1278 because it espouses the free market principle. Currently, thermal generators must pay for any ancillary service generation needed to meet a shortfall in their pledged generation, whereas intermittent generators do not. This bill would level the playing field among all electricity generators by assigning the costs of ancillary services used to meet shortfalls from intermittent generation to those generators, rather than passing it on to consumers. This would more fairly attribute costs among all generators.