HB 4091

relating to the interconnection of the ERCOT power grid to grids
outside the ERCOT power region.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 31.002(5), Utilities Code, is amended to
(5)  "Electric Reliability Council of Texas" or "ERCOT"
(A)  the area in Texas served by electric
utilities, municipally owned utilities, and electric cooperatives
that is not synchronously interconnected with electric utilities
(B)  if the commission approves a synchronous
interconnection under Chapter 39A, an area designated by the
commission by rule as necessary to administer this subtitle.
SECTION 2.  Subtitle B, Title 2, Utilities Code, is amended
by adding Chapter 39A to read as follows:
CHAPTER 39A. INTERCONNECTION OF FACILITIES IN ERCOT TO GRIDS
Sec. 39A.0101.  UTILITY AND COOPERATIVE AUTHORITY.
Notwithstanding any other law, a transmission and distribution
utility, municipally owned utility, or electric cooperative that
transmits or distributes power purchased at wholesale in the ERCOT
power region may construct, own, and operate facilities as
(1)  interconnect transmission facilities inside the
ERCOT power region to transmission facilities outside of the ERCOT
(2)  purchase power at wholesale from outside of the
Sec. 39A.0102.  SALE AUTHORITY.  Notwithstanding any other
law, an electric utility, electric cooperative, municipally owned
utility, or power generation company operating in this state may
sell electric energy at wholesale for retail sale inside or outside
the ERCOT power region for the purposes of this chapter.
Sec. 39A.0103.  COMMISSION AUTHORITY.  (a)  The commission
may request any federal approval necessary for the synchronous or
nonsynchronous interconnection of a facility described by Section
(b)  The commission may require the independent organization
certified for the ERCOT power region under Section 39.151 to
approve the synchronous or nonsynchronous interconnection of a
facility described by Section 39A.0101 unless otherwise provided by
federal law or the commission or the independent organization
determines that the interconnection poses a significant and
imminent risk to public health and safety.
(c)  The commission may provide technical and administrative
assistance to a transmission and distribution utility, municipally
owned utility, or electric cooperative seeking to construct, own,
or operate a facility described by Section 39A.0101.
(d)  The commission shall implement, and shall provide to the
Federal Energy Regulatory Commission, the Electric Reliability
Organization as defined by 16 U.S.C. Section 824o, and the
independent organization certified under Section 39.151 for the
ERCOT power region any assistance necessary to implement, a
reliability standard for the purposes of this chapter that requires
minimum total transfer capabilities between the ERCOT power region
(1)  4.3 gigawatts between the area under functional
control of the independent organization and the area under
functional control of the Southwest Power Pool;
(2)  2.5 gigawatts between the area under functional
control of the independent organization and the area under
functional control of Midcontinent Independent System Operator;
(3)  2.6 gigawatts between the area under functional
control of the independent organization and the Western
(e)  The commission shall designate one or more entities
described by Section 39A.0101 to site and construct new
transmission facilities or modify existing transmission facilities
to achieve the minimum total transfer capabilities described by
Subsection (d) or delegate authority to the independent
organization certified under Section 39.151 for the ERCOT power
region to designate the entities.
(f)  Notwithstanding any other law, the commission may
require an entity designated under Subsection (e) to make requests,
obtain approvals, enter into contracts, and construct or modify
facilities as necessary to interconnect a transmission facility
with a facility outside of ERCOT.
SECTION 3.  Sections 37.051(c-1), (c-2), and (c-3),
Utilities Code, are redesignated as Section 39A.0104, Utilities
Code, and amended to read as follows:
Sec. 39A.0104.  CERTIFICATES OF CONVENIENCE AND NECESSITY.
(a) A transmission and distribution utility, [(c-1)
Notwithstanding any other provision of this title except Section
11.009, and except as provided by Subsection (c-2), a person,
including an electric utility or] municipally owned utility, or
electric cooperative may not interconnect a facility to the ERCOT
transmission grid that enables additional power to be imported into
or exported out of the ERCOT power grid unless the utility or
cooperative [person] obtains a certificate from the commission in
the manner provided by Chapter 37 and this chapter stating that the
interconnection does not pose a significant and imminent risk to
public health and safety [public convenience and necessity requires
or will require the interconnection].
(b)  In the case of a conflict between Chapter 37 and this
chapter, this chapter prevails.
(c)  Sections 37.056(c)(1) and (2) and (d) do not apply to an
application for a certificate described by Subsection (a).
(d)  The commission may approve an application for a
certificate described by Subsection (a) unless otherwise provided
by federal law or the commission determines that granting the
application poses a significant and imminent risk to public health
(e)  The transmission and distribution utility, municipally
owned utility, or electric cooperative [person] must apply to the
commission for a [the] certificate described by Subsection (a) not
later than the 180th day before the date the utility or cooperative
[person] seeks any order from the Federal Energy Regulatory
Commission related to the interconnection.
(f)  [The commission shall apply Section 37.056 in
considering an application under this subsection.  In addition, the
commission must determine that the application is consistent with
the public interest before granting the certificate. The commission
may adopt rules necessary to implement this subsection. This
subsection does not apply to a facility that is in service on
[(c-2)] The commission, not later than the 185th day after
the date the application is filed, shall approve an application
[filed under Subsection (c-1)] for a facility that is to be
constructed under an interconnection agreement appended to an offer
of settlement approved in a final order of the Federal Energy
Regulatory Commission that was issued in Docket No. TX11-01-001 on
or before December 31, 2014, directing physical connection between
the ERCOT and SERC regions under Sections 210, 211, and 212 of the
Federal Power Act (16 U.S.C. Sections 824i, 824j, and 824k). In
approving the application, the commission may prescribe reasonable
conditions to protect the public interest that are consistent with
the final order of the Federal Energy Regulatory Commission.
(g) [(c-3)]  Nothing in this section [Subsection (c-1) or
(c-2)] is intended to restrict the authority of the commission or
the independent organization certified under Section 39.151 for the
ERCOT power region to adopt rules or protocols of general
SECTION 4.  This Act takes effect September 1, 2025.