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Texas Bill Addresses Utility Ownership, Use Of Storage In ERCOT
March 08,2019 A bill (S.B. No. 1941) addressing electricity storage in the ERCOT region has been filed in the Texas Senate by Sen. Kelly Hancock The bill would provide that a TDU, upon PUC approval and in only cases where traditional T&D construction is not cost-effective, may enter into an agreement with a power generation company to provide electricity from an energy storage facility. The bill would require the TDU to issue an RFP for any storage needs However, if no responses meet the requirements of the RFP, the TDU, upon PUC approval, may own and operate an energy storage facility to ensure reliable delivery of electricity to retail customers, the bill provides In such case, the total amount of energy storage capacity owned by a single transmission and distribution utility for this purpose may not exceed 10 megawatts Furthermore, a utility owning storage under the provision outlined above must purchase the energy to charge the facility from a retail electric provider and sell the energy discharged from the energy storage device to the same retail electric provider, the bill provides. Such TDU-owned storage facility may not be used to offer or sell electric energy or ancillary services except for sales to the retail electric provider that serves the transmission and distribution utility's energy storage facility when needed to ensure reliable service to retail customers.
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