Certain ERCOT electric generation facilities must annually show they can meet reliability performance requirements, and the commission may set the testing method and direct penalties or incentives.
Sec. 39.1592. GENERATION RELIABILITY REQUIREMENTS. (a) This section applies only to an electric generation facility in the ERCOT power region for which a standard generator interconnection agreement is signed on or after January 1, 2027, that has been in operation for at least one year, and that is not a self-generator. (b) Not later than December 1 of each year, an owner or operator of an electric generation facility, other than a battery energy storage resource, shall demonstrate to the commission the ability of the owner or operator's portfolio to operate or be available to operate when called on for dispatch at or above the seasonal average generation capability during the times of highest reliability risk, as determined by the commission, due to low operation reserves, as determined by the commission. The owner or operator must be allowed to meet the performance requirements described by this subsection by supplementing or contracting with on-site or off-site resources, including battery energy storage resources. The commission shall determine the average generation capability based on expected resource availability and seasonal-rated capacity on a standalone basis. (c) The commission shall require the independent organization certified under Section 39.151 for the ERCOT power region to: (1) enforce the requirements of Subsection (b) by imposing financial penalties, as determined by the commission, for failing to comply with the performance requirements described by that subsection; and (2) provide financial incentives, as determined by the commission, for exceeding the performance requirements described by that subsection. (d) The independent organization certified under Section 39.151 for the ERCOT power region may not impose penalties under Subsection (c): (1) for resource unavailability due to planned maintenance outages or transmission outages; (2) on resources that are already subject to performance obligations during the highest reliability risk hours under the day-ahead market rules or other ancillary or reliability services established by the commission or the independent organization; or (3) during hours outside a baseline established by the commission that includes morning and evening ramping periods. Added by Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 23, eff. September 1, 2023.