| (B) A renewable generator shall post collateral equal
to $15,350 per MW of its planned project capacity, or $10,000 per
MW if the capacity is supported by leasing agreements with landowners
that convey a right or option for a period of at least 20 years to
develop and operate a renewable energy project based on a conversion
factor of 60 acres per MW for a wind energy project.
(C) A renewable generator planning to build a project
in a CREZ shall post collateral with the TSP with which it will interconnect
in the CREZ or, if the TSP with which it will interconnect has not
been determined, with any TSP that has been designated to build and
own transmission facilities for that CREZ.
(D) A renewable generator may post collateral by providing
a cash deposit, letter of credit, or guaranty agreement from an entity
with an investment-grade credit rating. A TSP shall require a renewable
generator that posts a guaranty agreement to provide another form
of collateral if the guarantor loses its investment-grade credit rating
or declares bankruptcy. If the renewable generator does not provide
another form of collateral, the commission may take appropriate action
including seeking administrative penalties.
(8) A TSP that receives collateral from a renewable
generator pursuant to paragraph (7) of this subsection shall handle
that collateral in accordance with the following provisions.
(A) If a renewable generator signs an IA with the TSP
and posts any collateral required by the TSP to secure the construction
of collection facilities, the TSP shall return to the generator all
collateral received from that generator.
(B) If a renewable generator does not sign an IA with
the TSP and post any collateral required by the TSP to secure the
construction of collection facilities within 90 days after the TSP
notifies it that the transmission system is capable of accommodating
the renewable generator's renewable energy facility, the TSP shall
retain the collateral received from the generator as an offset to
the cost of the transmission facilities the TSP constructs for the
CREZ and shall take all reasonable measures to execute any non-cash
collateral.
(9) In a CREZ CCN application, a TSP may propose modifications
to the transmission facilities described in a CREZ order if such improvements
would reduce the cost of transmission or increase the amount of generating
capacity that transmission improvements for the CREZ can accommodate.
The commission may direct ERCOT to review modifications proposed by
the TSP.
(10) Findings in Docket Numbers 33672, 35665, and 36146
and the commission's finding in paragraph (5) of this subsection establish
that the level of financial commitment is sufficient under PURA §39.904(g)(3)
to grant CCNs for transmission facilities designated as a Default
Project in ordering paragraph 1 of the Order in Docket Number 36146
and for transmission facilities designated as a Priority Project in
finding of fact 136 in the Order on Rehearing in Docket Number 33672.
This finding of sufficient financial commitment shall be recognized
in all pending and future CCN proceedings for Default and Priority
Projects and shall not be addressed further in those proceedings.
(f) Excess development in a CREZ. If the aggregate
level of renewable energy capacity for which transmission service
is requested for a CREZ exceeds the maximum level of renewable capacity
specified in the CREZ order, and if the commission determines that
the security constrained economic dispatch mechanism used in the power
region to establish a priority in the dispatch of CREZ resources is
insufficient to resolve the congestion caused by excess development,
the commission may initiate a proceeding and may consider limiting
interconnection to and/or establishing dispatch priorities regarding
the transmission system in the CREZ, and identifying the developers
whose projects may interconnect to the transmission system in the
CREZ under special protection schemes.
|
| Source Note: The provisions of this §25.174 adopted to be effective January 4, 2007, 31 TexReg 10783; amended to be effective November 4, 2009, 34 TexReg 7629; amended to be effective July 5, 2016, 41 TexReg 4805 |
