SB 1978

relating to the interconnection of a facility in the ERCOT power
region to a facility outside the power region.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Sections 37.051(c-1), (c-2), and (c-3),
Utilities Code, are transferred to Subchapter D, Chapter 39,
Utilities Code, redesignated as Section 39.169, Utilities Code, and
Sec. 39.169.  INTERCONNECTION OF FACILITY IN ERCOT POWER
REGION TO FACILITY IN OTHER REGION OR STATE.  (a)  In this
subsection, "facility" means a facility that consumes, produces,
generates, transmits, distributes, or furnishes electricity.  A
person, including an electric cooperative or a municipally owned
utility, may not take an action that would result in the
interconnection of a facility in the ERCOT power region to a
facility located wholly or partly outside of this state, or the
interconnection of a facility in the ERCOT power region to a
facility that is connected directly or indirectly with a facility
located wholly or partly outside of this state, unless:
(1)  the commission first determines that the
interconnection is consistent with free market principles and does
not bring control of the Texas electric grid under federal
(2)  if applicable, the person complies with the
requirements of Chapter 37 and Subsection (b) of this section.
(b)  A person seeking to make an interconnection described by
Subsection (a) [(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, 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 person obtains a certificate
from the commission stating that public convenience and necessity
requires or will require the interconnection.  The person] must
obtain the determination under (a)(1) from the commission [apply
for the certificate] not later than the 180th day before the date
the person seeks any order from the Federal Energy Regulatory
Commission related to the interconnection.  The commission shall
apply Section 37.056 in considering an application for a
certificate of convenience and necessity to which this section
applies [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) [(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.
(d) [(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 2.  Section 39.169(a), Utilities Code, as added by
this Act, applies only to an action taken on or after the effective
date of this Act.  An action taken before the effective date of this
Act is governed by the law in effect when the action was taken, and
the former law is continued in effect for that purpose.
SECTION 3.  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.