Texas Bill Would Allow TDUs To Contract For Energy Storage For Distribution Service, Prohibit TDU Ownership

A bill (S.B. No. 415) has been introduced in the Texas legislature that would allow for TDUs to contract for energy storage for distribution-related service, but prohibit the PUC from authorizing TDUs to own storage

SB 415 provides that, "A transmission and distribution utility, with prior approval of the commission, may contract with a power generation company to provide electric energy from an electric energy storage facility to ensure reliable service to distribution customers."

"The commission may not authorize ownership of an electric energy storage facility by a transmission and distribution utility," the bill provides

A transmission and distribution utility may enter into an energy storage contract only if use of an electric energy storage facility is more cost-effective than construction or modification of traditional distribution facilities, the bill provides

The total amount of electric energy storage capacity, across all TDUs, reserved by contracts under the bill may not exceed 40 megawatts.