(a) Transmission service requirements. As a condition to obtaining
transmission service, a transmission service customer that owns electrical
facilities in the Electric Reliability Council of Texas (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, non-discriminatory interconnection and are not otherwise
inconsistent with the principles underlying the SGIA.
(b) Transmission service provider responsibilities. The TSP
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 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 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.
(c) Construction of new facilities. If additional transmission
facilities or interconnections between TSPs are needed to provide transmission
service pursuant to a request for such service, the TSPs where the constraint
exists shall construct or acquire the facilities necessary to 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, operationally sound, and relieves the transmission constraint
at least as effectively as would additional transmission facilities.
(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.
(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.
(B) If the new generating source is completed and the transmission
service customer begins to take the requested transmission service, the TSP
shall return the deposit or security to the transmission service customer.
If the new generating source is not completed and new transmission facilities
are not required, the TSP may retain as much of the deposit or security as
is required to cover the costs it incurred in planning, licensing, and construction
activities related to the planned new transmission facilities. Any repayment
of a cash deposit shall include interest at a commercially reasonable rate
based on that portion of the deposit being returned.
(2) 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.
(d) Curtailment of service. In an emergency situation, as determined
by ERCOT and at its direction, 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 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.
(e) Filing of contracts. Electric utilities shall file with
the commission all new interconnection agreements within 30 days of their
execution, including a cover letter explaining any deviations from the SGIA.
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. Upon showing a good cause, appropriate
portions of the filings required under this subsection may be subject to provisions
of confidentiality to protect competitively sensitive commercial or financial