PART 2. PUBLIC UTILITY COMMISSION OF TEXAS
CHAPTER 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
SUBCHAPTER I. TRANSMISSION AND DISTRIBUTION
The Public Utility Commission of Texas (commission) proposes amendments to 16 Texas Administrative Code (TAC) §25.195, relating to Terms and Conditions for Transmission Service.
This proposed rule will implement Public Utility Regulatory Act (PURA) §35.004(d) as revised and (d-1) through (d-3) as enacted by House Bill 1500, Section 9 during the Texas 88th Regular Legislative Session. The amended rule will establish an allowance for interconnection costs incurred by a transmission service provider (TSP) to interconnect generation resources at transmission voltage to the transmission system within the ERCOT power region.
Growth Impact Statement
The agency provides the following governmental growth impact statement for the proposed rule, as required by Texas Government Code §2001.0221. The agency has determined that for each year of the first five years that the proposed rule is in effect, the following statements will apply:
(1) the proposed rule will not create a government program and will not eliminate a government program;
(2) implementation of the proposed rule will not require the creation of new employee positions and will not require the elimination of existing employee positions;
(3) implementation of the proposed rule will not require an increase and will not require a decrease in future legislative appropriations to the agency;
(4) the proposed rule will not require an increase and will not require a decrease in fees paid to the agency;
(5) the proposed rule will not create a new regulation;
(6) the proposed rule will not expand, limit, or repeal an existing regulation;
(7) the proposed rule will not change the number of individuals subject to the rule's applicability; and
(8) the proposed rule will not affect this state's economy.
Fiscal Impact on Small and Micro-Businesses and Rural Communities
There is no adverse economic effect anticipated for small businesses, micro-businesses, or rural communities as a result of implementing the proposed rule. Accordingly, no economic impact statement or regulatory flexibility analysis is required under Texas Government Code §2006.002(c).
Takings Impact Analysis
The commission has determined that the proposed rule will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.
Fiscal Impact on State and Local Government
Mariah Benson, Economist, Market Analysis has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the sections.
Public Benefits
Ms. Benson has determined that for each year of the first five years the proposed section is in effect the public benefit anticipated as a result of enforcing the section will be incentivizing new generation to more economically site interconnections within the ERCOT region. There will be no probable economic cost to persons required to comply with the rule under Texas Government Code §2001.024(a)(5).
Local Employment Impact Statement
For each year of the first five years the proposed section is in effect, there should be no effect on a local economy; therefore, no local employment impact statement is required under Texas Government Code §2001.022.
Costs to Regulated Persons
Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under subsection §2001.0045(c)(7).
Public Hearing
The commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by December 21, 2023. If a request for public hearing is received, commission staff will file in this project a notice of hearing.
Public Comments
Interested persons may file comments electronically through the interchange on the commission's website. Comments must be filed by January 4, 2024. Reply comments must be filed by January 18, 2024. Comments should be organized in a manner consistent with the organization of the proposed rule. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed rule. The commission will consider the costs and benefits in deciding whether to modify the proposed rule on adoption. All comments should refer to Project Number 55566.
Each set of comments should include a standalone executive summary as the last page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should include a bulleted list covering each substantive recommendation made in the comments. Initial comments should be limited to ten pages, excluding the executive summary, and any attached redlines. Reply comments should be limited to five pages, excluding the executive summary and any attached redlines.
Statutory Authority
The amendment is proposed under Public Utility Regulatory Act (PURA) §14.001, which grants the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; §14.002, which authorizes the commission to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; and §35.004, which relates to the provision of wholesale transmission service and the establishment of a transmission-level generation interconnection allowance within the ERCOT region.
Cross Reference to Statute: Public Utility Regulatory Act §§14.001; 14.002; 35.004.
§25.195.Terms and Conditions for Transmission Service.
(a) Applicability. This section applies to transmission
service providers (TSPs) in the Electric Reliability Council of Texas
(ERCOT) region providing transmission service to transmission service
customers. [Transmission service requirements. As a condition
to obtaining transmission service, a transmission service customer
that owns electrical facilities in the ERCOT region shall execute
interconnection agreements with the transmission service providers
(TSP) to which it is physically connected. The commission-approved
standard generation interconnection agreement (SGIA) for the interconnection
of new generating facilities shall be used by power generation companies,
exempt wholesale generators, and TSPs. A standard agreement may be
modified by mutual agreement of the parties to address specific facts
presented by a particular interconnection request as long as the modifications
do not frustrate the goal of expeditious, nondiscriminatory interconnection
and are not otherwise inconsistent with the principles underlying
the SGIA.]
(b) Definitions. The following terms have the following meanings unless context indicates otherwise.
(1) Generation resource--a transmission service customer that sells generation at wholesale, is interconnected to a TSP's system at a voltage above 60 kilovolts (kV), and is required to execute a standard generation interconnection agreement (SGIA) under this section.
(2) Transmission system upgrade--any additional transmission facilities or modifications beyond what is required to interconnect a transmission service customer to the transmission system, and which provide benefits to other customers that are independent of the benefit provided by interconnecting the transmission service customer alone.
(c) Interconnection agreement. As a condition of obtaining transmission service, a transmission service customer that owns electrical facilities in the ERCOT region must execute an interconnection agreement with the TSP to which it is physically interconnected. The commission-approved SGIA must be used for the interconnection of a new transmission service customer. The SGIA may be modified by mutual agreement of the parties to address specific facts presented by a particular interconnection request provided that the modifications do not frustrate the goal of expeditious, nondiscriminatory interconnection and are not otherwise inconsistent with the principles underlying the commission-approved SGIA.
(d) [(b)] Transmission service
provider responsibilities. The TSP must [will]
plan, construct, operate, and maintain its transmission
system in accordance with good utility practice [in order ]
to provide transmission service customers with transmission service
over its transmission system in accordance with Division 1 of this
subchapter (relating to Open-Access Comparable Transmission Service
for Electric Utilities in the Electric Reliability Council of Texas).
The TSP must [shall], consistent with good utility
practice, endeavor to construct and place into service sufficient
transmission capacity to ensure adequacy and reliability of the network
to deliver power to transmission service customer loads. The TSP must
[will] plan, construct, operate, and maintain facilities
that are needed to relieve transmission constraints, as recommended
by ERCOT and approved by the commission, in accordance with Division
1 of this subchapter. The construction of facilities requiring commission
issuance of a certificate of convenience and necessity is subject
to such commission approval.
(e) [(c)] Construction of new
facilities. If new [additional] transmission
facilities or interconnections between TSPs are needed to provide
transmission service in response to [pursuant]
a request for such service, the TSPs must [where the
constraint exists shall] construct or acquire transmission [the] facilities necessary to provide [permit]
the transmission service [to be provided ] in accordance
with good utility practice, unless ERCOT identifies an alternative
means of providing the transmission service that is less costly, is
operationally sound, and is [relieves the transmission
constraint at least] as effective [effectively]
as the new [would additional] transmission facilities would be at providing the requested transmission
service.
[(1) When an eligible transmission
service customer requests transmission service for a new generating
source that is planned to be interconnected with a TSP's transmission
network, the transmission service customer shall be responsible for
the cost of installing step-up transformers to transform the output
of the generator to a transmission voltage level and protective devices
at the point of interconnection capable of electrically isolating
the generating source owned by the transmission service customer.
The TSP shall be responsible, pursuant to paragraph (2) of this subsection,
for the cost of installing any other interconnection facilities that
are designed to operate at a transmission voltage level and any other
upgrades on its transmission system that may be necessary to accommodate
the requested transmission service.]
(1) [(A)] An affected TSP may
require the transmission service customer to pay a reasonable deposit
or provide another means of security, to cover the costs of planning,
licensing, and constructing any new transmission facilities that will
be required in order to provide the requested service.
(A) [(B)] If the new transmission
service customer's interconnection [generating source]
is completed [and the transmission service customer begins to
take the requested transmission service], the TSP must [shall] return the deposit or security to the transmission servicecustomer.
(B) If the new transmission service
customer's interconnection [generating source] is
not completed and the new transmission facilities are not
required, the TSP may retain as much of the deposit or security as
is required to cover the costs the TSP [it]
incurred in planning, licensing, and construction activities related
to the planned new transmission facilities. Any repayment of a cash
deposit must [shall] include interest at a commercially
reasonable rate based on that portion of the deposit being returned.
(2) If the TSP's acquisition or construction of
the new transmission facilities would impair the tax-exempt status
of obligations issued by the TSP then the TSP may require a contribution
in aid to construction from the transmission service customer to cover
all or part of the cost of acquiring and constructing the new transmission
facilities. [A transmission service customer that is requesting
transmission service, including transmission service at distribution
voltage, may be required to make a contribution in aid of construction
to cover all or part of the cost of acquiring or constructing additional
facilities, if the acquisition of the additional facilities would
impair the tax-exempt status of obligations issued by the provider
of transmission services.]
(3) For a transmission service customer that is not a generation resource, the TSP is responsible for the cost of installing any new transmission facilities, other than those described in paragraph (2) of this subsection.
(4) For a generation resource, the costs of installing new transmission facilities must be borne in accordance with subsection (f) of this section.
(f) Cost responsibilities to interconnect generation resources at transmission voltage.
(1) A new generation resource seeking interconnection to a TSP's transmission network is responsible for the cost of installing step-up transformers and protective devices at the point of interconnection capable of electrically isolating the generation resource.
(2) If the SGIA between the generation resource and the TSP is executed on or before December 31, 2025, then the TSP is responsible for the cost of installing any new transmission facilities.
(3) If the SGIA between a generation resource and TSP is executed after December 31, 2025, then the interconnecting generation resource is responsible for all costs of installing interconnection facilities that are incurred by the TSP that exceed the allowance established in accordance with this paragraph. The TSP is responsible for the costs of installing any transmission system upgrades deemed necessary by the TSP and ERCOT that are made concurrently with the installation of the interconnection facilities.
(A) The allowance will be calculated by the commission as follows:
(i) For a generation resource interconnecting at a transmission voltage of 138 kV or less, the allowance beginning on January 1, 2026, is based on the 2023 amount of $12,000,000 adjusted for subsequent years consistent with clause (ii) of this subparagraph. For a generation resource interconnecting at a transmission voltage higher than 138kV, the allowance beginning on January 1, 2026, is based on the 2023 amount of $22,500,000 adjusted for subsequent years consistent with clause (ii) of this subparagraph.
(ii) Beginning on January 1, 2025, the commission will increase or decrease the allowance prescribed by clause (i) of this subparagraph annually on or before January 1 of each calendar year. Annually, no later than September 1, 2024, the commission will publish the new values of the allowance to be used in the subsequent calendar year.
(I) The annual adjustment will be proportional to the change from the corresponding 2023 value reflected in the National Income and Product Accounts (NIPA) Seasonally Adjusted Price Index for Private Fixed Investment-Nonresidential Structures for Power and Communication published by the United States Department of Commerce, Bureau of Economic Analysis.
(II) The executive director may designate a substitute index to be used as a reference for adjustments under this clause if the index referenced by subclause (I) of this clause becomes unavailable.
(B) A generation resource that seeks to interconnect an energy storage resource is only eligible to receive the allowance described under this subsection and not additional allowances provided to interconnect load, such as may be provided under a tariff.
(C) The amount of the allowance that a generation resource is provided to complete the interconnection is the amount that was in effect on the date the notice to proceed was issued by the generation resource to the TSP in accordance with the executed SGIA. A TSP's costs to construct, design, and upgrade interconnection facilities that exceed the allowance must be directly billed to and collected from the generation resource that caused the costs to be incurred by the TSP. The TSP may collect such costs as a contribution in aid to construction prior to procuring, designing, and constructing the interconnection facilities.
(D) Notwithstanding any payments made by a generation resource under this section, an interconnecting TSP retains ownership and control of its transmission facilities.
(E) The responsibility of costs incurred by a TSP for new or upgraded interconnection facilities due to modifications made by a generation resource will be borne in accordance with this subparagraph.
(i) For the ten calendar years following the date of energization for the initial interconnection of the generation resource:
(I) To the extent that the costs of the interconnection facilities exceed the remainder of the allowance calculated under paragraph (f)(3) of this section, the current owner of the interconnected generation resource is responsible for the interconnection costs incurred by the TSP, where:
(-a-) the allowance is the amount that was in effect on the date the notice to proceed with the initial interconnection was issued in accordance with the executed SGIA; and
(-b-) the remainder is the difference between the allowance described under subclause (I) of this clause and the actual costs that a TSP incurred to construct, design, and upgrade interconnection facilities to initially interconnect the generation resource.
(II) The current owner of an interconnected generation resource is determined in accordance with the most recently executed SGIA for that generation resource.
(ii) After ten calendar years from the date of energization for the initial interconnection of the generation resource, the TSP is responsible for the costs of new or upgraded interconnection facilities.
(g) [(d)] Curtailment of service.
In an emergency situation, as determined by ERCOT and at its direction, a TSP [TSPs] may interrupt transmission service on
a non-discriminatory basis, if necessary, to preserve the stability
of the transmission network and service to customers. Such curtailments must [shall] be carried out in accordance with §25.200
of this title (relating to Load Shedding, Curtailments, and Redispatch)
and in accordance with ERCOT protocols.
(h) [(e)] Filing of contracts. A TSP must [Electric utilities shall] file with the
commission each [all] new, and all amendments
to, interconnection agreements within 30 days of [their ]
execution, including a cover letter explaining any deviations from
the commission-approved SGIA. An interconnection agreement
is [These interconnection agreements shall be filed for
the commission's information. Interconnection agreements are]
subject to commission review and approval upon request by any party
to the agreement. Appropriate [Upon showing a good
cause, appropriate] portions of the filings [required under
this subsection ] may be filed confidentially and be subject
to provisions of confidentiality to protect competitively sensitive
commercial or financial information.
(i) ERCOT must, in consultation with commission staff, develop protocols to regularly publish a report that includes the generation interconnection costs for each generation resource interconnection.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on November 30, 2023.
TRD-202304407
Adriana Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: January 14, 2024
For further information, please call: (512) 936-7322
The Public Utility Commission of Texas (commission) proposes new 16 Texas Administrative Code (TAC) §25.510 relating to the Texas Energy Fund In-ERCOT Generation Loan Program. This new rule will implement Public Utility Regulatory Act (PURA) §34.0104 as enacted by Senate Bill (SB) 2627 during the Texas 88th Regular Legislative Session. The proposed rule will establish procedures for applying for a loan for construction of dispatchable electric generation facilities within the ERCOT region, evaluation criteria, and terms for repayment. The proposed rule also specifies a performance standard that an electric generating facility must achieve to obtain a loan.
Growth Impact Statement
The agency provides the following governmental growth impact statement for the proposed rule, as required by Texas Government Code §2001.0221. The agency has determined that, for each year of the first five years that the proposed rule is in effect, the following statements will apply:
(1) the proposed rule will not create a government program and will not eliminate a government program;
(2) implementation of the proposed rule will require the creation of new employee positions but will not require the elimination of existing employee positions;
(3) implementation of the proposed rule will not require an increase in legislative appropriations because Texas Constitution article III, §49-q provides that "money in the Texas energy fund may be administered and used, without further appropriation . . .";
(4) implementation of the proposed will not require a decrease in future legislative appropriations to the agency;
(5) the proposed rule will not require an increase and will not require a decrease in fees paid to the agency;
(6) the proposed rule will create a new regulation;
(7) the proposed rule will not expand, limit, or repeal an existing regulation;
(8) the proposed rule will not change the number of individuals subject to the rule's applicability; and
(9) the proposed rule will not affect this state's economy.
Fiscal Impact on Small and Micro-Businesses and Rural Communities
There is no adverse economic effect anticipated for small businesses, micro-businesses, or rural communities as a result of implementing the proposed rule. Accordingly, no economic impact statement or regulatory flexibility analysis is required under Texas Government Code §2006.002(c).
Takings Impact Analysis
The commission has determined that the proposed rule will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.
Fiscal Impact on State and Local Government
David Gordon, Executive Counsel, Executive Director Division, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the sections.
Public Benefits
Mr. Gordon has determined that for each year of the first five years the proposed rule is in effect, the public benefit anticipated as a result of enforcing the section will be increased construction of dispatchable electric generating facilities in the state. There will be no probable economic cost to persons required to comply with the rule under Texas Government Code §2001.024(a)(5) because the rule is designed to offer low-interest loans to qualifying electric generating facilities.
Local Employment Impact Statement
For each year of the first five years the proposed section is in effect, there should be no effect on a local economy; therefore, no local employment impact statement is required under Texas Government Code §2001.022.
Costs to Regulated Persons
Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under subsection §2001.0045(c)(7).
Public Hearing
The commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by December 22, 2023. If a request for public hearing is received, commission staff will file in this project a notice of hearing.
Public Comments
Interested persons may file comments electronically through the interchange on the commission's website or by submitting a paper copy to Central Records, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326. Austin, Texas 78711-3326. Comments must be filed by January 5, 2024. Comments should be organized in a manner consistent with the organization of the proposed rule. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed rule. The commission will consider the costs and benefits in deciding whether to modify the proposed rule on adoption. All comments should refer to Project Number 55826.
In addition to comments on the text of the proposed rule, the commission invites interested persons to address the following questions related to eligibility requirements of the proposed rule:
1. Should the rule require registration as a power generation company with the commission as a condition for eligibility to receive a loan? Why or why not?
2. Should the rule require registration as a Generation Resource with ERCOT as a condition for eligibility to receive a loan? Why or why not?
3. How should the commission evaluate PURA §34.0106(b)'s prohibition against providing a loan to an electric generating facility that will be used primarily to serve an industrial load or private use network?
a. Should the commission prescribe a percentage of total energy output that an electric generating facility must achieve to be eligible for a loan? If so, what percentage should the commission prescribe?
b. Should the commission employ another method to ensure that an electric generating facility primarily serves the ERCOT grid? If so, what method is appropriate and why?
Each set of comments should include a standalone executive summary as the last page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should include a bulleted list covering each substantive recommendation made in the comments. Comments should be limited to 12 pages, excluding the executive summary, and any attached redlines.
Statutory Authority
The rule is proposed under Public Utility Regulatory Act (PURA) §14.001, which grants the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; §14.002, which authorizes the commission to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; §34.0104, which authorizes the commission to use money in the Texas Energy Fund to provide loans to finance upgrades to or new construction of electric generating facilities in the ERCOT region; §34.0106(c), which requires the commission to adopt performance standards that electric generating facilities must meet to obtain a loan; and §34.0110, which authorizes the commission to establish procedures for the application and award of a grant or loan under PURA chapter 34, subchapter A.
Cross Reference to Statute: Public Utility Regulatory Act §§14.001, 14.002, 34.0104; 34.0106(c), and 34.0110.
§25.510.Texas Energy Fund In-ERCOT Generation Loan Program.
(a) Purpose. The purpose of this section is to implement Public Utility Regulatory Act (PURA) §34.0104, which establishes requirements and terms for loans to finance dispatchable electric generating facilities within the ERCOT region.
(b) Definitions. The following words and terms, when used in this section, have the following meanings unless the context indicates otherwise.
(1) Borrower--An applicant to the Texas Energy Fund who is successfully awarded a loan under this section.
(2) Commercial operations date--The date on which the electric generating facility has completed all qualification testing administered by ERCOT and is approved for participation in the ERCOT market, as identified by ERCOT in the applicable monthly generator interconnection status report.
(c) Eligibility.
(1) An electric utility other than a river authority is not eligible for a loan under this section.
(2) The following activities are eligible for a loan under this section:
(A) New construction of an electric generating facility capable of generating at least 100 megawatts (MW) of capacity with an output that can be controlled primarily by forces under human control.
(B) Upgrades to existing electric generating facilities that result in a net increase of at least 100 MW of capacity for each facility with an output that can be controlled primarily by forces under human control.
(3) In addition, a proposed facility must:
(A) be designed to interconnect and provide power to the ERCOT power region;
(B) be designed to participate in the ERCOT wholesale market; and
(C) be eligible to interconnect to the ERCOT region based on the attributes of the owners of the facility, according to the requirements in the Lone Star Infrastructure Protection Act (codified at Texas Business and Commerce Code §117.002).
(4) The following activities are not eligible for a loan under this section:
(A) Construction or operation of an electric energy storage facility.
(B) Construction or operation of a natural gas transmission pipeline.
(C) Any planned facility that met the planning model requirements necessary to be included in the capacity, demand, and reserves report issued by ERCOT before June 1, 2023.
(D) Operation that primarily serves an industrial load or private use network.
(d) Notice of intent to apply.
(1) At least 60 days before submitting an application under this section, an applicant must submit a notice of intent to apply in the manner prescribed by the commission. Information submitted to the commission as part of the notice of intent to apply is confidential and not subject to disclosure under Chapter 552, Government Code. The notice of intent to apply must include:
(A) The applicant's corporate name and the name of the electric generating facility for which it seeks a loan;
(B) The anticipated generation capacity of each electric generating facility proposed to be financed with a loan under this section;
(C) The anticipated commercial operations date of each electric generating facility;
(D) The amount of the loan requested;
(E) For each electric generating facility, information demonstrating that the applicant is capable of financing project-related costs not supported by a loan awarded under this section.
(2) Concurrent with the notice of intent to apply, the applicant must separately file a letter with the commission stating the applicant's corporate name and the MW capacity that the requested loan amount will finance.
(e) Application requirements and process. A loan application must be submitted in the form and in the manner prescribed by the commission. Information submitted to the commission as part of the loan application process is confidential and not subject to disclosure under Chapter 552, Government Code. An application must include each of the requirements detailed in this subsection. An applicant may withdraw an application at any time while under commission review.
(1) The applicant's corporate name and the name of the electric generating facility for which it requests a loan.
(2) Amount of the loan requested.
(3) The anticipated generation capacity of the electric generating facility proposed to be financed with a loan under this section.
(4) Applicant information.
(A) A copy of any information submitted to ERCOT regarding the applicant's attestation of market participant citizenship, ownership, or headquarters;
(B) Evidence of the applicant's prior experience with siting, permitting, financing, constructing, commissioning, operating, and maintaining dispatchable electric generating facilities to provide reliable electric service in competitive energy markets;
(C) Evidence of the applicant's creditworthiness, including:
(i) An equity commitment letter demonstrating the ability to fund the necessary project equity (40 percent of the remaining estimated cost of construction) plus the required three percent construction escrow deposit amount.
(ii) Financial statements, including statements of the applicant's total assets, total liabilities, net worth, and credit ratings issued by major credit rating agencies.
(5) Project information.
(A) A narrative explanation that details how the facility will contribute to reliably meeting peak winter and summer load in the ERCOT region, including the project's plans for ensuring adequate fuel supplies and preparations for compliance with §25.55 of this title (relating to Weather Emergency Preparedness);
(B) Demonstration of the project's eligibility under subsection (c) of this section;
(C) Project-specific information that will allow the commission to determine and evaluate the viability and attributes of the electric generating facility, including:
(i) A table with the resource operation attributes, including nameplate capacity, seasonal net maximum sustainable ratings during winter and summer, cold and hot temperature start times, and the original equipment manufacturer's estimated equivalent availability factor (EAF) calculation in North American Electric Reliability Corporation (NERC's) generating availability data system (GADS);
(ii) A statement indicating whether the electric generating facility will serve an industrial load or private use network, and if so, a description of how the electric generating facility will primarily serve and benefit the ERCOT bulk power system given its relationship to an industrial load or private use network, and whether full generation output would be available to the ERCOT bulk power system during any Energy Emergency Alert, and a copy of any information submitted to ERCOT regarding private use network net generation capacity availability;
(iii) A one-line diagram of the proposed project, if available;
(iv) Evidence of site control, consistent with applicable ERCOT planning guide requirements;
(v) An up-to-date phase 1 environmental site assessment, conducted in accordance with standards identified in 40 C.F.R. Part 312;
(vi) A description of the electrical interconnection plan, including evidence that the proposed project is in the interconnection queue with ERCOT and has completed the ERCOT screening study; a copy of the full interconnection study with the interconnecting transmission service provider, if completed; and a copy of the executed standard generation interconnection agreement;
(vii) A description of the fuel and water supply arrangements, including copies of applicable fuel and water supply agreements, if available, and evidence of receipt of necessary water rights and applicable permits;
(viii) A description of the operations and maintenance staffing plan, organizational structure, and operating programs and procedures for the proposed project, including copies of operations and maintenance agreements, if available, and organizational charts;
(ix) A list of all required environmental, construction, and operating permits with current approval status;
(x) A description of the air emissions compliance plan, including evidence of receipt of any required air emissions credits;
(xi) A detailed financial forecast of cash available for debt service, covering a period equal to the repayment period of the loan, including sources of revenue and an annual operating and maintenance budget; and
(xii) A proposed project schedule with anticipated dates for major project milestones, such as execution of the standard generation interconnection agreement, completion of the full interconnection study, start date for the engineering of the project, construction start date, submission of applicable registration documents with ERCOT and the commission, energization (backfeed date), initial synchronization and parallel operation with the ERCOT grid, and commercial operations date.
(6) Estimated cost. A description of estimated project costs, which includes:
(A) Development, construction, and capital commitments required for the project to reach completion;
(B) Permitting-related costs;
(C) Development fees;
(D) Land acquisition and lease costs;
(E) Legal fees;
(F) Up-front fees;
(G) Commitment fees;
(H) Interest rate protection;
(I) Ancillary credit facility fees;
(J) Title insurance; and
(K) Interconnection costs.
(f) Evaluation Criteria. The commission will approve or deny an application on the criteria and evaluation outlined in this subsection.
(1) The commission will evaluate an application under this section based on:
(A) The applicant's:
(i) Quality of services and management, as shown by the applicant's prior history of electricity generation in this state and this country and proposed organizational structure for the project for which the applicant seeks a loan;
(ii) Efficiency of operations, as shown by the applicant's existing generation resources and proposed operational attributes of the project for which the applicant seeks a loan;
(iii) History of electricity generation operations in this state and this country;
(iv) Resource operation attributes, including fuel type and heat rate, seasonal net maximum sustainable rating, resource ramp rate, and capacity factor;
(v) Ability to address regional and reliability needs;
(vi) Access to resources essential for operating the facility for which the loan is requested, such as land, water, and reliable infrastructure, as applicable;
(vii) Evidence of creditworthiness and ability to repay the loan on the terms established in the loan agreement; and
(B) The nameplate generation capacity and total estimated costs of the facility for which the loan is requested.
(2) The commission may also consider the following criteria:
(A) The suitability of the facility site to support the construction, operation, and maintenance of the proposed facility and to provide sufficient access to utilities;
(B) The sufficiency of the various construction and equipment supply contracts necessary to construct the facility;
(C) The outcomes of planned tests of the resource's operating capabilities;
(D) The commercial feasibility of the facility's construction schedule;
(E) The facility's proposed environmental permits and commitments;
(F) The reasonableness of the applicant's forecast of non-fuel operating and maintenance costs;
(G) The methodology used to construct the facility's financial forecast of projected net revenues;
(H) The sufficiency of the applicant's proposed sources of equity to cover the costs of the facility not funded through a loan provided under this section;
(I) Whether the facility can achieve the applicant's long-term EAF and capacity projections; and
(J) The basis for the total projected construction costs, including project contingencies.
(g) Loan Structure. An approved loan will have the following characteristics:
(1) Consist of no more than 60 percent of the estimated cost of the electric generating facility to be completed;
(2) Be the senior debt secured by the electric generating facility to be completed;
(3) Have a repayment term of 20 years;
(4) Be payable on a pro rata basis starting on the third anniversary of the estimated commercial operations date of the electric generating facility as stated on the application; and
(5) Be structured as senior debt secured by a first lien security interest in the assets and revenues of the project.
(h) Loan Terms and Agreements. A borrower must enter into one or more agreements with the commission that includes the terms of this section.
(1) Credit agreement--the primary agreement between the borrower and the commission that will govern the terms and conditions under which the commission will loan funds to the borrower. The credit agreement will include the following key terms:
(A) Performance covenant--the electric generating facility financed by the loan must meet an EAF performance of 50 for all hours during the term of the loan. EAF is the fraction of a given operating period in which a generating unit is available to produce electricity without any outages or equipment deratings.
(B) Construction and term loan facility--a senior secured first lien construction and term loan facility will be advanced to the borrower in one or more drawings upon the closing date of the credit agreement and will continue until the project achieves commercial operation and the construction loan is converted to a term loan. Amounts repaid during the term of the construction loan, if any, may not be re-borrowed by the borrower following the construction loan's conversion to a term loan.
(i) Upon initial closing of the credit agreement, the borrower may request an initial loan disbursement for up to 60 percent of qualifying and documented incurred expenses that are part of the total estimated cost of construction for the project, as verified by the commission.
(ii) During the term of the construction loan, the borrower may request loan disbursements for up to 60 percent of the documented incurred project construction and commissioning costs. The borrower will contribute the required equity commitment of no less than 40 percent to such construction and commissioning costs as the borrower makes draws during the construction loan period.
(iii) For all loan disbursements, the borrower will be required to submit a construction drawdown certificate in the form specified by the commission. The commission will review the construction drawdown certificate and, upon approval, will instruct the Texas Treasury Safekeeping Trust Company to disburse funds.
(iv) Upon the commercial operations date of the facility and fulfillment of any other conditions precedent, the construction loan will convert to an amortizing term loan applicable to the total disbursements to the borrower.
(C) Equity capital contributions--the commission will verify the borrower's required equity capital contributions (40 percent of the estimated capital cost of the project).
(D) Interest--interest on the loan amounts disbursed under the credit agreement will accrue at a fixed annual rate of three percent.
(E) Voluntary prepayment--the borrower may voluntarily prepay the total loan amount under the credit agreement in whole or in part at any time without premium or penalty.
(F) Collateral--to secure the indebtedness under the credit agreement, the borrower will grant the commission a first priority security interest in all of its existing and after-acquired real and personal property related to the facility and in all of the outstanding equity interests of the borrower in the facility.
(G) Change of ownership and control--a change of ownership and control occurs if greater than 50 percent of the equity interest in the project is sold to a third party. The borrower and the third party must submit an application for change of ownership and control that meets the requirements of subsections (c) and (e) of this section. A change of ownership and control will require the commission's approval.
(H) Compliance and audit covenants--the credit agreement will include debt covenants requiring the borrower to meet all statutory requirements for loan application eligibility and a debt covenant requiring that the borrower submit annual financial audits, credit assessments, and electric generating facility performance assessments throughout the term of the loan. If the borrower also serves an industrial load or private use network, the borrower must also submit an annual accounting showing that the majority of the output of the electric generating facility served the ERCOT bulk power system during the performance year.
(2) Depositary agreement--an agreement between the borrower and commission that will give the commission, as lender, control over the borrower's deposit accounts and securities accounts to perfect the commission's security interest in those accounts.
(3) Security agreement--an agreement between the borrower and the commission that will give the commission, as lender, the right to take control of and transfer all material project assets in the event of a default on the credit agreement, subject to the applicable procedures and approvals identified in PURA §34.0108.
(4) Pledge agreement--an agreement between the borrower and the commission that will create a security interest in the equity interests of the project in favor of the commission as the senior secured party.
(5) Deposit agreement--an agreement between the borrower and the commission in which the borrower will agree to a deposit described in subsection (i) of this section.
(6) Events of default--the borrower must agree to specified events of default, which include:
(A) Failure to pay principal, interest, or other amounts due;
(B) Breach of covenants in any agreement;
(C) Inaccuracy of representations in any agreement;
(D) Bankruptcy or insolvency of the borrower; and
(E) Abandonment.
(7) Remedies for events of default--the borrower must agree to the remedies described in PURA §34.0108 following an event of default.
(i) Deposits.
(1) The borrower must deposit in an escrow account held by the Texas Comptroller of Public Accounts an amount equal to three percent of the estimated cost of the project for which the loan is provided. The borrower must deposit the required funds before the initial loan amount is disbursed.
(2) The borrower may not withdraw the deposit from the escrow account unless authorized by the commission.
(A) For deposits related to the construction of new facilities, subject to commission authorization, the borrower may withdraw the deposit funds from the escrow account if the facility for which the loan was provided is interconnected in the ERCOT region:
(i) before the fourth anniversary of the date the initial loan funds were disbursed; or
(ii) after the fourth anniversary but before the fifth anniversary of the date the initial loan funds were disbursed, if the commission finds that extenuating circumstances caused the delay.
(B) For deposits related to upgrades to existing facilities, subject to commission authorization, the borrower may withdraw the deposit funds from the escrow account if the facility for which the loan was provided is completed:
(i) before the third anniversary of the date the initial loan funds were disbursed; or
(ii) after the third anniversary but before the fourth anniversary of the date the initial loan funds were disbursed, if the commission finds that extenuating circumstances caused a delay in the completion of the project.
(C) For the purpose of this subsection, interconnection occurs when the electric generating facility is physically connected and able to inject energy into the ERCOT region.
(3) Upon the occurrence of an event that entitles the borrower to withdraw its deposit, the borrower will file a notice of satisfaction with the commission stating that the borrower requests the return of the deposit. The notice must state:
(A) The event that entitles the borrower to withdraw the deposit;
(B) The date of interconnection or initial loan disbursement, as applicable; and
(C) A detailed statement of extenuating circumstances, if any, that support the borrower's request for a later withdrawal of the deposit.
(4) The commission will evaluate each notice of satisfaction to determine whether the borrower is entitled to withdraw its deposit. If the borrower demonstrates that it has satisfied the requirements for withdrawal, then the commission will instruct the comptroller to return the deposit to the borrower. If the commission determines that withdrawal is not authorized, then it will instruct the comptroller to transfer the deposit to the Texas Energy Fund.
(j) No Contested Case or Appeal. Neither an application for a loan nor a request for withdrawal of a deposit is a contested case. Commission decisions on a loan application or request for withdrawal of deposit are not subject to motions for rehearing or appeal.
(k) Expiration. This section expires September 1, 2050.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on November 30, 2023.
TRD-202304403
Adriana Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: January 14, 2024
For further information, please call: (512) 936-7322
The Public Utility Commission of Texas (commission) proposes new 16 Texas Administrative Code (TAC) §25.511, relating to the Texas Energy Fund Completion Bonus Grant program. This new rule will implement Public Utility Regulatory Act (PURA) §34.0105 as enacted by Senate Bill (SB) 2627 during the Texas 88th Regular Legislative Session. The proposed rule will establish procedures for applying for a completion bonus grant award as well as terms for an applicant to request an annual grant payment. The proposed rule also specifies performance standards that an electric generating facility must achieve to obtain a completion bonus grant payment.
Growth Impact Statement
The agency provides the following governmental growth impact statement for the proposed rule, as required by Texas Government Code §2001.0221. The agency has determined that for each year of the first five years that the proposed rule is in effect, the following statements will apply:
(1) the proposed rule will not create a government program and will not eliminate a government program;
(2) implementation of the proposed rule will require the creation of new employee positions and will not require the elimination of existing employee positions;
(3) implementation of the proposed rule will not require an increase in legislative appropriations because Texas Constitution article III, §49-q provides that "money in the Texas energy fund may be administered and used, without further appropriation . . .";
(4) implementation of the proposed will not require a decrease in future legislative appropriations to the agency;
(5) the proposed rule will not require an increase and will not require a decrease in fees paid to the agency;
(6) the proposed rule will create a new regulation;
(7) the proposed rule will not expand, limit, or repeal an existing regulation;
(8) the proposed rule will not change the number of individuals subject to the rule’s applicability; and
(9) the proposed rule will not affect this state's economy.
Fiscal Impact on Small and Micro-Businesses and Rural Communities
There is no adverse economic effect anticipated for small businesses, micro-businesses, or rural communities as a result of implementing the proposed rule. Accordingly, no economic impact statement or regulatory flexibility analysis is required under Texas Government Code §2006.002(c).
Takings Impact Analysis
The commission has determined that the proposed rule will not be a taking of private property as defined in chapter 2007 of the Texas Government Code.
Fiscal Impact on State and Local Government
David Gordon, Executive Counsel, Executive Director Division, has determined that for the first five-year period the proposed rule is in effect, there will be no fiscal implications for the state or for units of local government under Texas Government Code §2001.024(a)(4) as a result of enforcing or administering the sections.
Public Benefits
Mr. Gordon has determined that for each year of the first five years the proposed rule is in effect the public benefit anticipated as a result of implementing the section will be increased construction of dispatchable electric generating facilities in the state. There will not be any significant, probable economic cost to persons required to comply with the rule under Texas Government Code §2001.024(a)(5) because the rule is designed to deliver grant money to qualifying electric generating facilities.
Local Employment Impact Statement
For each year of the first five years the proposed section is in effect, there should be no effect on a local economy; therefore, no local employment impact statement is required under Texas Government Code §2001.022.
Costs to Regulated Persons
Texas Government Code §2001.0045(b) does not apply to this rulemaking because the commission is expressly excluded under subsection §2001.0045(c)(7).
Public Hearing
The commission staff will conduct a public hearing on this rulemaking if requested in accordance with Texas Government Code §2001.029. The request for a public hearing must be received by December 22, 2023. If a request for public hearing is received, commission staff will file in this project a notice of hearing.
Public Comments
Interested persons may file comments electronically through the interchange on the commission's website or by submitting a paper copy to Central Records, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326. Austin, Texas 78711-3326. Comments must be filed by January 5, 2024. Comments should be organized in a manner consistent with the organization of the proposed rules. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed rule. The commission will consider the costs and benefits in deciding whether to modify the proposed rules on adoption. All comments should refer to Project Number 55812.
In addition to comments on the text of the proposed rule, the commission invites interested persons to address the following questions related to eligibility requirements of the proposed rule:
1. Should the rule require registration as a power generation company with the commission as a condition for eligibility to receive a completion bonus grant award? Why or why not?
2. Should the rule require registration as a Generation Resource with ERCOT as a condition for eligibility to receive a completion bonus grant award? Why or why not?
3. How should the commission evaluate PURA §34.0106(b)'s prohibition against providing a completion bonus grant award to an electric generating facility that will be used primarily to serve an industrial load or private use network?
a. Should the commission prescribe a percentage of total energy output that an electric generating facility must achieve to be eligible for a completion bonus grant award? If so, what percentage should the commission prescribe?
b. Should the commission employ another method to ensure that an electric generating facility primarily serves the ERCOT grid? If so, what method is appropriate and why?
Each set of comments should include a standalone executive summary as the last page of the filing. This executive summary must be clearly labeled with the submitting entity's name and should include a bulleted list covering each substantive recommendation made in the comments. Comments should be limited to 12 pages, excluding the executive summary, and any attached redlines.
Statutory Authority
The rule is proposed under Public Utility Regulatory Act (PURA) §14.001, which grants the commission the general power to regulate and supervise the business of each public utility within its jurisdiction and to do anything specifically designated or implied by this title that is necessary and convenient to the exercise of that power and jurisdiction; §14.002, which authorizes the commission to adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction; §34.0105(i), which requires the commission to adopt a system for determining the amount by which the commission will discount an annual grant payment based on facility performance; and §34.0110, which authorizes the commission to establish procedures for the application and award of a grant or loan under PURA chapter 34, subchapter A.
Cross Reference to Statute: Public Utility Regulatory Act §§14.001, 14.002, 34.0105(i), and 34.0110.
§25.511.Texas Energy Fund Completion Bonus Grant Program.
(a) Purpose. The purpose of this section is to implement Public Utility Regulatory Act (PURA) §34.0105 and establish:
(1) procedures for submitting an application to be eligible for a completion bonus grant award;
(2) terms for an applicant to request an annual grant payment; and
(3) performance standards for electric generating facilities for which an applicant seeks a completion bonus grant payment.
(b) Definitions. The following words and terms, when used in this section, have the following meanings unless the context indicates otherwise.
(1) Commercial operations date -- means the date on which the electric generating facility completes ERCOT's commissioning process and is approved for participation in the ERCOT market, as identified by ERCOT in the applicable monthly generator interconnection status report.
(2) Performance year -- means the one-year period that ends on an electric generating facility's most recent anniversary of its commercial operations date.
(c) Eligibility. To be eligible for a completion bonus grant award under this section, an applicant's electric generating facility must:
(1) Have a capacity of at least 100 megawatts (MW) attributable to:
(A) The construction of new dispatchable electric generating facilities providing power for the ERCOT region; or
(B) The addition of new dispatchable electric generating facilities at an existing location providing power for the ERCOT region;
(2) Be a dispatchable electric generating facility with an output that can be controlled primarily by forces under human control that is not an electric energy storage facility;
(3) Interconnect and provide electricity to the ERCOT region;
(4) Participate in the ERCOT wholesale market;
(5) Meet the planning model requirements necessary to be included in an ERCOT capacity, demand, and reserves report for the ERCOT region after June 1, 2023;
(6) Operate in such a manner that the electric generating facility serves a greater output of electricity to the ERCOT bulk power system than it serves to an industrial load or private use network; and
(7) Meet the interconnection deadlines described in subsection (e) of this section.
(d) Determination of eligibility for completion bonus grant award.
(1) Eligibility application. No later than 180 days after the commercial operations date of the electric generating facility for which an applicant requests a completion bonus grant award, an applicant must submit an electronic application in the form and manner prescribed by the commission. The application must include:
(A) The applicant's corporate name and the name of the electric generating facility for which it seeks a completion bonus grant award;
(B) Information describing the applicant's quality of services and management;
(C) Information describing the applicant's efficiency of operations;
(D) A record of the applicant's history of electric generation operations in this state, including information demonstrating the applicant's prior experience with operating and maintaining dispatchable electric generating facilities;
(E) A description of the operational attributes of the electric generating facility, including the manner in which it will serve an associated private use network or industrial load, if any, along with a description of how the electric generating facility primarily serves and benefits the ERCOT bulk power system given its relationship to a private use network or industrial load, and whether full generation output would be available to the ERCOT bulk power system during any Energy Emergency Alert;
(F) A description of the electric generating facility's ability to address regional and reliability needs;
(G) For electric generating facilities not yet interconnected to the ERCOT region:
(i) A proposed project schedule with anticipated dates for completion of construction, submission of registration documents with ERCOT and the commission, and anticipated commercial operations date;
(ii) The anticipated capacity of the electric generating facility when commercial operations begin; and
(iii) The estimated construction costs of the electric generating facility.
(H) For electric generating facilities already interconnected to the ERCOT region:
(i) The actual new construction costs of the electric generating facility;
(ii) The commercial operations date of the newly constructed electric generating facility;
(iii) The total increase in capacity of the electric generating facility; and
(iv) The name of the electric generating facility on ERCOT's market participant list.
(I) A statement describing when the electric generating facility met the planning model requirements necessary to be included in an ERCOT capacity, demand, and reserves report with an identification of the first instance of the electric generating facility's inclusion in an ERCOT capacity, demand, and reserves report;
(J) A statement of whether the applicant applied for a loan under 16 TAC §25.510, relating to Texas Energy Fund In-ERCOT Generation Loan Program, as well as the commission's determination on the loan application; and
(K) If applicable, a statement asserting that extenuating circumstances support the extension of any deadline described in subsection (e) of this section, including the facts surrounding those extenuating circumstances.
(2) The commission will evaluate the information provided in an application to determine whether an applicant is deemed eligible to receive a completion bonus grant award. Determination of eligibility to receive a completion bonus grant award does not entitle an applicant to a grant payment.
(A) For applicants deemed eligible to receive a completion bonus grant award, the commission will file a notice of eligibility applicable to the electric generating facility. The notice of eligibility will state the completion bonus grant award amount based on the capacity of the electric generating facility and its interconnection date.
(B) A notice of eligibility will authorize an applicant to request and obtain data from ERCOT showing the electric generating facility's equivalent availability factor (EAF) performance during the 100 hours with the least quantity of operating reserves during a performance year. A notice of eligibility will automatically expire 45 days after the tenth anniversary of the electric generating facility's commercial operations date.
(3) Information submitted to the commission in a completion bonus grant application is confidential and not subject to disclosure under Chapter 552 of the Texas Government Code.
(4) Applicants must separately file a statement indicating that an application for a completion bonus grant award has been presented to the commission for review with the date of application submission.
(e) Completion bonus grant award amount. The amount of a completion bonus grant award is based on the capacity and interconnection date of the electric generating facility for which an applicant requests a completion bonus grant award. Unless the commission determines that extenuating circumstances justify extension of the deadlines under this subsection, the commission may approve a completion bonus grant award for an applicant deemed eligible to receive a completion bonus grant award in an amount not to exceed:
(1) $120,000 per MW of capacity for an electric generating facility that is interconnected to the ERCOT region before June 1, 2026; or
(2) $80,000 per MW of capacity for an electric generating facility that is interconnected to the ERCOT region before June 1, 2029.
(f) Grant payment request.
(1) For each performance year, the commission will disburse a grant payment to an applicant eligible to receive a completion bonus grant award. A grant payment is one-tenth of an applicant's total completion bonus grant award, subject to the performance standards and discount methodology prescribed under subsections (g) and (h) of this section.
(2) No later than 45 days after each anniversary of the electric generating facility's commercial operations date, an applicant may submit a request for grant payment in the form and manner prescribed by the commission. The request for grant payment must include the following information:
(A) A statement that the applicant is eligible to receive a completion bonus grant award with reference to the commission's notice of eligibility for a completion bonus grant award for the electric generating facility;
(B) The electric generating facility's commercial operations date and the performance year for which the applicant requests a grant payment;
(C) The amount of the grant payment requested based on the applicant's notice of eligibility and the electric generating facility's EAF performance rating during the performance year;
(D) The electric generating facility's EAF performance record during the performance year with accompanying data from ERCOT to support the electric generating facility's EAF; and
(E) If an electric generating facility also serves a private use network or industrial load, an accounting showing that the majority of the output of the electric generating facility served the ERCOT bulk power system during the performance year.
(4) The commission will evaluate a request for grant payment to determine whether an electric generating facility meets the performance standards to receive a grant payment for the performance year requested, including whether to discount or withhold a grant payment. Upon determining that an electric generating facility is approved to receive a grant payment in the amount requested, the commission will instruct the Texas Treasury Safekeeping Trust Company to disburse the grant payment to the applicant.
(g) Performance standards. An electric generating facility's performance is based on EAF during the performance year for which an applicant requests a grant payment. EAF is the fraction of a given operating period in which a generating unit is available to produce electricity without any outages or equipment deratings during the 100 hours with the least quantity of operating reserves during a performance year. A grant payment may be discounted based on the formula prescribed subsection (h) of this section. The performance standards for any performance year are as follows:
(1) Optimal performance is an EAF of 95 during the 100 hours with the least quantity of operating reserves for the performance year.
(2) Median performance is an EAF of 50 during the 100 hours with the least quantity of operating reserves for the performance year.
(h) Grant payment discount formula. A grant payment equals one tenth of an applicant's completion bonus grant award as stated in the applicant's notice of eligibility, subject to discount or withholding. The formula for any discount of an annual grant payment is as follows:
Figure: 16 TAC §25.511(h) (.pdf)
(1) Discount or withholding of payment.
(A) The commission will not apply any discount to a grant payment if the facility meets or exceeds the optimal performance standard established under subsection (g)(1) of this section.
(B) The commission will disburse a discounted grant payment if the performance of the electric generating facility for which the grant was provided is above the median performance standard established under subsection (g)(2) of this section but less than an optimal performance standard established under subsection (g)(1) of this section.
(C) The commission will withhold a grant payment if the EAF performance of the facility is equal to or below the median performance standard established under subsection (g)(2) of this section.
(2) Example. An applicant would receive the following grant payments for hypothetical performance years 1, 2, and 3 based on a $12,000,000 completion bonus grant award described in a notice of eligibility for a 100 MW electric generating facility interconnected on March 1, 2026.
Figure: 16 TAC §25.511(h)(2) (.pdf)
(i) No Contested Case or Appeal. Neither an application for a completion bonus grant award nor a request for grant payment is a contested case. Commission decisions on completion bonus grant award eligibility or whether to disburse a grant payment are not subject to motions for rehearing or appeal.
(j) Expiration. This section expires December 1, 2040.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on November 30, 2023.
TRD-202304404
Adriana Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: January 14, 2024
For further information, please call: (512) 936-7322