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Texas Bill Would Require PUC To Develop Ancillary Service Allowing Retail Providers To Aggregate Backup Generation To Provide Dispatchable Generation To ERCOT

February 3, 2025

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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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HB 2303 has been filed in the Texas legislature which would require the Texas PUC to develop an ancillary service allowing retail electric providers to aggregate back-up generation to provide dispatchable generation to ERCOT during a power grid "outage".

Specifically, HB 2303 provides that the PUC shall develop an A/S, "to allow a retail electric provider, a municipally owned utility that has not adopted customer choice, or an electric cooperative that has not adopted customer choice to aggregate customer-sited backup generation facilities to provide dispatchable generation during a power grid outage if the participation of the facilities in such a program is technologically feasible."

To be eligible, the back-up generation must be capable of being dispatched by ERCOT

HB 2303 provides that this program "may" allow participating customers to sell energy produced by the customer-sited backup generation facilities at:

(1) a value based on the clearing price of energy at the time of day and at the location at which the electricity is generated, including electric energy consumed on customer premises; or

(2) another value as determined by the PUC or ERCOT.

Such sale may be applied as a credit to the customer's account during a billing period that may be carried over to subsequent billing periods until the credit has been redeemed, the bill provides

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