PART 2. PUBLIC UTILITY COMMISSION OF TEXAS
CHAPTER 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
SUBCHAPTER S. WHOLESALE MARKETS
The Public Utility Commission of Texas (commission) proposes an amendment to 16 Texas Administrative Code (TAC) §25.510 relating to the Texas Energy Fund In-ERCOT Generation Loan Program. The new rule was initially adopted by the commission on March 21, 2024, and published in the Texas Register on April 19, 2024, with an effective date of April 23, 2024.
This rule implements Public Utility Regulatory Act (PURA) §34.0104 as enacted by Senate Bill (SB) 2627 during the Texas 88th Regular Legislative Session. The rule establishes procedures for applying for a loan for construction of dispatchable electric generation facilities within the ERCOT region, evaluation criteria, and terms for repayment and also specifies a performance standard that an electric generating facility must achieve to obtain a loan. The proposed amendment to the rule is to correct an inadvertent omission by the Texas Register in the definitions for the formulas in subsection (b)(4) and (5). No other amendments have been made to the rule.
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 or elimination of new employee positions;
(3) implementation of the proposed rule will not require an increase in legislative appropriations;
(4) implementation of the proposed rule 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 Texas Government Code chapter 2007.
Fiscal Impact on State and Local Government
Adriana Gonzales, Legal Assistant, Rules and Projects 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 section.
Public Benefits
Ms. Gonzales 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 aligning the posted rule in the Texas Administrative Code with the order previously adopted by the commission in this project. 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 §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 August 9, 2024. 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 August 9, 2024. Comments should be organized in a manner consistent with the organization of the proposed rule. All comments should refer to Project Number 55826.
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) (No change.)
(b) Definitions. The following words and terms, when used in this section, have the following meanings unless the context indicates otherwise.
(1) - (3) (No change.)
(4) 12-Month performance availability factor (PAF)--A metric calculated with ERCOT availability and real time (RT) telemetered data for each generation resource in an electric generating facility financed by a loan under this section. The PAF is computed as the average ratio of each generation resource's RT high sustainable limit (HSL) and its obligated capacity over a 12-month measurement period, expressed as a percentage. Intervals that occurred during an approved planned outage of a generation resource are excluded. The PAF is calculated as follows:
Figure: 16 TAC §25.510(b)(4) (.pdf)
[Figure: 16 TAC §25.510(b)(4)]
(5) 12-Month planned outage factor (POF)--A metric calculated with ERCOT data for each generation resource in an electric generating facility financed by a loan under this section. The POF is computed as the percentage of time each generation resource spent in planned outages over a 12-month measurement period. The POF is calculated as follows:
Figure: 16 TAC §25.510(b)(5) (.pdf)
[Figure: 16 TAC §25.510(b)(5)]
(c) - (k) (No change.)
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 July 11, 2024.
TRD-202403064
Adriana Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: August 25, 2024
For further information, please call: (512) 936-7322