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ARTICLE · 09 APRIL 2021

Texas Bills Would Burden Renewable Gen

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The Texas House of Representatives and Senate are considering three similar, but not identical, legislative drafts that could impose substantial grid charges directly on renewable generation...

United StatesEnergy and Natural Resources
Mark C. Williams
Mark C. Williams
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The Texas House of Representatives and Senate are considering three similar, but not identical, legislative drafts that could impose substantial grid charges directly on renewable generation businesses. 

House Bill 4466, which is scheduled for hearing on April 8, would require the Public Utility Commission of Texas (PUCT) to require the Electric Reliability Council of Texas (ERCOT), the state's internal market operator, to directly assign to the renewable projects themselves the costs of ancillary services that ERCOT incurs (including standby backup, and reactive power) to address renewable energy-related reliability issues. Senate Bill 1278, which was favorably voted out of the Senate Business & Commerce Committee on April 7, would command the PUCT to require intermittent resources to purchase ancillary services and replacement power to manage net load variability. 

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