| (B) capacity represented by generation projects under
construction that are located in one or more of the counties that
lie in whole or in part within the CREZ and that will be operational
within six months of the final order in a financial commitment proceeding.
Evidence that the project will be operational within six months may
include documentation showing that a construction contractor has been
hired, that preliminary site work has begun, that the project financing
has closed, or similar indicators of the status of the project;
(C) capacity represented by planned generation projects
that are located in one or more of the counties that lie in whole
or in part within the CREZ and that have a signed IA with a TSP that
has been defined in subsection (a)(2)(E) of this section designated
to build and own transmission facilities for that CREZ; and
(D) capacity represented by collateral posted by generators
for the CREZ that complies with paragraph (7) of this subsection.
(4) Financial commitment for a CREZ is sufficient under
PURA §39.904(g)(3) to grant CCNs for transmission facilities
for the CREZ if the sum of the renewable generating capacity under
any combination of paragraph (3)(A), (B), (C), and (D) of this subsection
is at least 50% of the designated generating capacity for the CREZ.
Fifty percent of the designated generating capacity for the Panhandle
A CREZ approved by the commission in Docket Number 33672 shall be
considered to be 1,595.5 MW. Fifty percent of the designated generating
capacity for the Panhandle B CREZ approved by the commission in Docket
Number 33672 shall be considered to be 1,196.5 MW.
(5) Installed renewable generation, renewable generation
projects under construction, and planned renewable generation projects
with signed IAs in the McCamey, Central, and Central West CREZs approved
by the commission in Docket Number 33672 satisfy the financial commitment
test set forth in paragraph (4) of this subsection for those CREZs
and therefore financial commitment by renewable generators for those
CREZs is sufficient under PURA §39.904(g)(3) to grant CCNs for
transmission facilities for those CREZs. This finding of sufficient
financial commitment shall be recognized in the CCN proceedings for
transmission facilities for those CREZs and shall not be addressed
further in those proceedings.
(6) Commission staff shall initiate a single proceeding
for the commission to determine whether there is sufficient financial
commitment under PURA §39.904(g)(3) by renewable generators for
the Panhandle A and Panhandle B CREZs approved by the commission in
Docket Number 33672 to grant CCNs for transmission facilities for
those CREZs. If the commission determines that there is sufficient
financial commitment for one of those CREZs, that finding shall be
recognized in the CCN proceedings for transmission facilities for
that CREZ, as identified in the commission's order in the proceeding
initiated pursuant to this paragraph, and shall not be addressed further
in the CCN proceedings. If the commission determines that the Panhandle
A or Panhandle B CREZ does not satisfy the financial commitment test
in paragraph (4) of this subsection, the commission may:
(A) consider other evidence of financial commitment
that the commission finds relevant under PURA §39.904(g)(3);
(B) find that the financial commitment requirement
for that CREZ has been met if the commission determines that significant
financial commitment exists in that CREZ and that the CREZ is sufficiently
interrelated with a CREZ that has satisfied the financial commitment
test;
(C) delay the filing of CREZ CCN applications for that
CREZ until the commission conducts a subsequent proceeding in which
it finds sufficient financial commitment for that CREZ in accordance
with the financial commitment provisions of this subsection; or
(D) take other appropriate action.
(7) A renewable generator that elects to post collateral
pursuant to paragraph (3)(D) of this subsection shall comply with
the following requirements:
(A) The renewable generator shall provide a letter
of intent to post collateral in a proceeding conducted pursuant to
paragraph (6) of this subsection. The renewable generator shall then
post the collateral no later than 30 days after the commission issues
an interim order finding sufficient financial commitment by renewable
generators for the CREZ. If the renewable generators post sufficient
collateral, the commission may enter a final order with findings that
reflect the adequacy of the financial commitment for the CREZ. If
the renewable generators do not post sufficient collateral, the commission
may enter a final order with findings that reflect the inadequacy
of the financial commitments for the CREZ.
(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.
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| 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 |
