Texas Legislature Defines Electric Storage as Generation

May 31, 2011
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The Texas legislature has enrolled and sent to the governor SB 943, which defines electric storage as generation.

Specifically, the bill provides that electric energy storage equipment or facilities that are intended to be used to sell energy or ancillary services at wholesale are generation assets, and therefore the owner or operator of such storage facilities is a power generation company and is required to register under PURA Section 39.351(a).

Electric storage equipment is entitled to:

(1) Interconnect the equipment or facilities;

(2) Obtain transmission service for the equipment or facilities; and

(3) Use the equipment or facilities to sell electricity or ancillary services at wholesale in a manner consistent with the provisions of PURA and Commission rules applicable to a power generation company or an exempt wholesale generator.

SB 943 is explicit that it does not affect any determination previously made by the PUCT with respect to a specific storage asset. The PUCT had previously included a battery storage project in Electric Transmission Texas' transmission cost of service, as the project was deemed a reliability solution in place of transmission.

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