| (a) Applicability. This section applies to the provision
of transmission service in the Electric Reliability Council of Texas
(ERCOT) region by transmission service providers (TSPs) to transmission
service customers. This section also applies to ERCOT.
(b) Definitions. The following terms have the following
meanings unless context indicates otherwise.
(1) Transmission-level generator--a transmission service
customer that is an electric generating facility under §25.5
of this title (relating to Definitions), is interconnected to a TSP's
system at or above 60 kilovolts (kV), and is located behind one or
more unique points of interconnection.
(2) Transmission system upgrade--any additional transmission
facilities or modifications beyond what is required to interconnect
a transmission-level generator to the transmission system. The construction
of a new substation or modifications to an existing substation is
not a transmission-system upgrade if necessary to interconnect a transmission-level
generator.
(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
standard generation interconnection agreement (SGIA) must be used
for the interconnection of a new transmission service customer that
is a transmission-level generator. 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. The SGIA must not be modified to relieve
a transmission-level generator's responsibility for all costs of installing
interconnection facilities that are incurred by the TSP that exceed
the allowance under subsection (f) of this section.
(d) Transmission service provider responsibilities.
The TSP must plan, construct, operate, and maintain its transmission
system in accordance with good utility practice 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, 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 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) Construction of new facilities. If new transmission
facilities or interconnections between TSPs are needed to provide
transmission service in response to a request for such service, the
TSPs must construct or acquire transmission facilities necessary to
provide the transmission service 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 as effective
as the new transmission facilities would be at providing the requested
transmission service.
(1) 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. Any repayment of a cash deposit under subparagraph
(A) or (B) of this paragraph must include interest at a commercially
reasonable rate based on that portion of the deposit being returned.
(A) If the new transmission service customer's interconnection
is completed and the transmission service customer begins to take
the requested transmission service, the TSP must return the deposit
or security to the transmission service customer.
(B) If the new transmission service customer's interconnection
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 incurred in planning, licensing, and construction
activities related to the planned new transmission facilities.
(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 of construction (CIAC) from the transmission service customer
to cover all or part of the cost of acquiring and constructing the
new transmission facilities.
(3) For a transmission service customer that is not
a transmission-level generator, the TSP is responsible for the cost
of installing any new transmission facilities, other than those provided
for in paragraph (2) of this subsection, in a contractual agreement
between the TSP and the customer, or in a commission-approved transmission
service tariff.
(4) For a transmission-level generator, the costs of
installing new transmission facilities must be borne in accordance
with subsection (f) of this section.
(f) Cost responsibilities to interconnect transmission-level
generators at transmission voltage.
(1) A new transmission-level generator 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 transmission-level generator.
(2) If the SGIA between the transmission-level generator
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 transmission-level generator
and TSP is executed after December 31, 2025, then the interconnecting
transmission-level generator 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.
(A) The allowance will be calculated by the commission
as follows:
(i) For a transmission-level generator interconnecting
at a transmission voltage of 138 kV or less, the allowance beginning
on January 1, 2026, is based on the 2024 amount of $14,000,000 adjusted
for subsequent years consistent with clause (ii) of this subparagraph.
For a transmission-level generator interconnecting at a transmission
voltage higher than 138kV, the allowance beginning on January 1, 2026,
is based on the 2024 amount of $20,000,000 adjusted for subsequent
years consistent with clause (ii) of this subparagraph.
(ii) The commission will increase or decrease the allowance
on or before January 1 of each calendar year in accordance with this
clause. The commission will publish the new values of the allowance
to be used in the subsequent calendar year on or around November 1
of each calendar year.
(I) The annual adjustment will be proportional to the
third quarter to third quarter percentage change in the national Consumer
Price Index (CPI) published by the United States Department of Labor,
Bureau of Labor Statistics.
(II) The executive director must 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 transmission-level generator 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 transmission-level
generator is provided to complete the interconnection is the amount
that was in effect on the date the notice to proceed with the interconnection
was issued by the transmission-level generator to the TSP in accordance
with the executed SGIA. A TSP's costs to procure, design, and construct
or upgrade interconnection facilities that exceed the allowance must
be directly billed to and collected from the transmission-level generator
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 or upgrading the interconnection facilities.
(D) Notwithstanding any payments made by a transmission-level
generator under this section, an interconnecting TSP retains ownership
and control of its transmission facilities.
Cont'd... |
