Utilities could connect ERCOT facilities to outside power grids

A transmission or distribution utility, municipal utility, or electric cooperative could build, own, and operate facilities to obtain outside transmission service or buy wholesale power from outside ERCOT. This applies to utilities and cooperatives that transmit or distribute wholesale power purchased in the ERCOT power region. The facilities would still be subject to federal law and the bill’s approval rules. The commission could provide technical and administrative help to an eligible utility or cooperative. The Act would take effect on the 91st day after the legislative session ends.

The Public Utility Commission would generally have to approve an eligible interconnection certificate unless federal law prevents approval or the connection poses a significant and imminent risk to public health and safety. The rule covers synchronous and non-synchronous connections by transmission and distribution utilities, municipal utilities, and electric cooperatives to facilities outside ERCOT. Applicants would need a certificate under the bill and applicable Chapter 37 requirements. Applicants would have to apply at least 180 days before seeking a related federal order. Some Chapter 37 review factors would not apply to these applications. The commission could not approve a connection that presents a significant and imminent risk to public health and safety. The approval rules would apply when the Act takes effect, on the 91st day after the legislative session ends.

By September 1, 2027, the commission would identify certain ERCOT transmission facilities for possible synchronous connections outside ERCOT and require their owners to pursue those connections. The requirement covers transmission facilities the commission identifies as suitable for connections that could allow federal regulation of ERCOT transmission service and wholesale power sales. Owners would have to request approvals, enter contracts, and build facilities needed for the synchronous connection. Federal law and other approval requirements would still apply. The commission would have to identify the facilities by September 1, 2027. This requirement would expire August 31, 2031.