March 9, 2023 — Low-interest loans, public emergency backup generators, cyberattack grid hardening and cancellation of state subsidies for wind and solar are among the priorities in a new multi-billion-dollar plan made up of several Senate bills unveiled in the state Legislature on Thursday aimed at helping improve Texas electric grid reliability.
State Sen. Charles Schwertner said at a Capitol news conference of state senators that so far renewables are distorting the power supply markets; he called for “more dispatchable generation to balance out and assure we have a grid that’s performing in times of need.”
Lt. Gov. Dan Patrick said there’s a strong need for both renewables and more fossil fuel energy generation to keep the grid on an even keel, which he hoped will “balance fairness and the equity” among power sources.
He said the bills are the result of hours of testimony and months of study of the Texas electric grid.
“We’re going to build these plants and we’re going to have renewables that help keep our air clean and prices low.”
Sen. Phil King is also leading the charge that included the introduction of the new Senate bills.
Perhaps the most controversial of the bills introduced is SB 6, which includes the creation of the Texas Energy Insurance Program (which would exist outside the control of any municipality and would exclude such municipalities and co-ops for a period depending on whether “customer choice” is implemented) and “other funding mechanisms” (see below) that would support building and operating new generation facilities, referred to as “reliability assets,” strictly within the ERCOT region under a state-certified ownership.
Sen. Schwertner said the new program will add 10,000 MW of power to the grid.
“This is not building a capacity market, it’s an insurance product,” he said, emphasizing the need for a backup plan in times of extreme need.
The costs of the Energy Insurance Program transmission and distribution would be borne by “all retail customers in the ERCOT power region” and participating entities would be guaranteed by the PUC to receive a “reasonable rate that recognizes the critical service the reserve” would provide, with the PUC deciding on that rate.
To be part of the new Energy Insurance Program, entities must first establish financial stability by demonstrating total assets of at least $10 billion for every gigawatt of generated capacity plus acceptable cash reserves and credit rating — plus the demonstration of energy expertise by already operating assets producing at least 15,000 MW, maintaining OCEA and standardized ratings — and entities must establish best practices for customer service and project quality standards as defined in the the bill.
SB 6 says the PUC may require an electric utility to provide, at wholesale prices, transmission service to another utility, to the Energy Insurance Program or to other entities involved….