Texas legislative panel advances grid bills

OREANDA-NEWS. A Texas state Senate committee has approved bills to extend state regulatory authority over large direct-current transmission projects and end special treatment for added high-voltage transmission lines to serve wind and solar farms.

Members of the Texas Senate Natural Resources and Economic Development Committee also sent for full Senate consideration several other measures, including a bill that would repeal Texas' renewable mandate, which was surpassed before its deadline.

Senate bill 933 would address concerns raised by the Texas Public Utility Commission (PUC) that proposed direct-current ties designed to allow the import or export of gigawatts of electricity from the state could affect reliability, resource adequacy and wholesale price formation.

Senate committee chairman Troy Fraser (R) cited two projects — Pattern Energy's Southern Cross line and the Tres Amigas energy conversion facility — that he said could threaten the state's independence from direct regulation by the Federal Energy Regulatory Commission.

An increase in cross-border transactions could alter prices in the Texas grid's energy-only market, Fraser added. "We would like to have a handle on that before these things are approved," he said.

If passed, SB 933 would give the PUC authority to review and regulate such transmission projects.

Pattern Energy senior vice president David Parquet said federal energy regulators have determined that the \$2bn project is in the public interest and will not impair Texas grid reliability. Southern Cross is a 2,000MW direct-current tie designed to move Texas wind power to the southeast US power markets.

Pattern does not oppose the public purpose of the bill, but "having to re-examine those same issues in response to this new legislation would significantly delay" development, Parquet said. Pattern officials said they will continue to work with lawmakers as the bill progresses.

The proposed Tres Amigas project in New Mexico would allow the transfer of power between the US eastern and western grids and the Electric Reliability Council of Texas. The three US grids have limited connectivity.

Senate bill 931 would repeal the 2005 Texas renewable mandate of 10,000MW and return transmission lines to serve abundant wind zones to full PUC review.

With more than 12,000MW of wind power and a \$7bn grid expansion to accommodate up to 18,000MW, Fraser said the state remains open to renewable power development. "It is time to declare victory," Fraser said.

Critics of the bill testified that it sends the wrong message and that the mandate should be retained in case it could help the state meet federal carbon emissions rules.

The bill was amended to allow another \$130mn in transmission investment to connect remaining wind farms in the Texas panhandle.

An initiative by Oncor, Texas largest power delivery company, to change state law to allow transmission companies to invest in battery storage technology did not attract legislative support.

Oncor said its goal was to spark a discussion about how the technology can improve the grid and that Oncor will talk further with legislators, regulators and market participants.