HB 838

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.  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)  access transmission service from outside of the
(2)  purchase power at wholesale from outside of the
Sec. 39A.0102.  COMMISSION AUTHORITY.  (a)  The commission
may request any federal approval necessary for the interconnection
of a facility described by Section 39A.0101.
(b)  The commission shall require the independent
organization certified for the ERCOT power region under Section
39.151 to approve the 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
(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.
Sec. 39A.0103.  SYNCHRONOUS AND NON-SYNCHRONOUS
INTERCONNECTIONS. (a) This chapter applies to synchronous and
non-synchronous interconnections.
(b)  Unless otherwise provided by federal law, the
commission shall approve an application for a certificate of
convenience and necessity submitted under Section 39A.0104 by a
transmission and distribution utility, municipally owned utility,
or electric cooperative for a facility that would synchronously
interconnect to a facility outside the ERCOT power region if the
application complies with all applicable provisions of Chapter 37
(c)  Not later than September 1, 2027, the commission shall
identify transmission facilities in ERCOT that may be synchronously
interconnected with transmission facilities outside of ERCOT for
the purpose of allowing federal regulation of transmission service
and wholesale power sales in ERCOT.  Notwithstanding any other law,
the commission shall require a transmission and distribution
utility, municipally owned utility, or electric cooperative that
owns a transmission facility identified by the commission to make
requests, obtain approvals, enter into contracts, and construct
facilities as necessary to synchronously interconnect the facility
with a transmission facility outside of ERCOT.  This subsection
SECTION 2.  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 described by
Section 39A.0101 [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
(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 shall 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 3.  This Act takes effect September 1, 2025.