Tex. Utils. Code Section 39.651
Purpose; Use of Proceeds

(a)

The purpose of this subchapter is to address the Winter Storm Uri uplift balance by:

(1)

enabling the independent organization certified under Section 39.151 (Essential Organizations) for the ERCOT power region to finance the uplift balance on behalf of wholesale market participants through debt obligations; and

(2)

authorizing the commission to contract with another state agency to finance the payment of the uplift balance with debt obligations or use any another financial mechanism consistent with this subchapter for that purpose.

(b)

Financing the uplift balance in the manner provided by this subchapter will allow wholesale market participants who were assessed extraordinary uplift charges due to consumption during the period of emergency to pay those charges over a longer period of time, alleviating liquidity issues and reducing the risk of additional defaults in the wholesale market.

(c)

The legislature finds that authorizing financing under this subchapter serves the public purpose of allowing the commission to stabilize the wholesale electricity market in the ERCOT power region.

(d)

The proceeds of debt obligations issued under this subchapter must be used solely for the purpose of financing reliability deployment price adder charges and ancillary service costs that exceeded the commission’s system-wide offer cap and were uplifted to load-serving entities based on consumption during the period of emergency. A load-serving entity that receives proceeds from the debt obligations may use the proceeds solely for the purposes of fulfilling payment obligations directly related to such costs and refunding such costs to retail customers who have paid or otherwise would be obligated to pay such costs.

(e)

The commission shall ensure that the structuring and pricing of the debt obligations results in the lowest uplift charges consistent with market conditions and the terms of the order issued under this subchapter. The present value calculation must use a discount rate equal to the proposed interest rate on the debt obligations.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.

Source: Section 39.651 — Purpose; Use of Proceeds, https://statutes.­capitol.­texas.­gov/Docs/UT/htm/UT.­39.­htm#39.­651 (accessed Jun. 5, 2024).

39.001
Legislative Policy and Purpose 39.002
Applicability 39.003
Contested Cases 39.051
Unbundling 39.052
Freeze on Existing Retail Base Rate Tariffs 39.053
Cost Recovery Adjustments 39.054
Retail Electric Service During Freeze Period 39.055
Force Majeure 39.101
Customer Safeguards 39.102
Retail Customer Choice 39.103
Commission Authority to Delay Competition and Set New Rates 39.104
Customer Choice Pilot Projects 39.105
Limitation on Sale of Electricity 39.106
Provider of Last Resort 39.107
Metering and Billing Services 39.108
Contractual Obligations 39.109
New Owner or Successor 39.110
Wholesale Indexed Products Prohibited 39.112
Notice of Expiration and Price Change 39.151
Essential Organizations 39.152
Qualifying Power Regions 39.153
Capacity Auction 39.154
Limitation of Ownership of Installed Capacity 39.155
Commission Assessment of Market Power 39.156
Market Power Mitigation Plan 39.157
Commission Authority to Address Market Power 39.158
Mergers and Consolidations 39.159
Power Region Reliability and Dispatchable Generation 39.160
Wholesale Pricing Procedures 39.161
Charges for Certain Market Participants 39.162
Default of Market Participant 39.163
Amounts Owed to Independent Organization by Market Participants 39.164
Audit of Independent Organization Certified for Ercot Power Region 39.165
Grid Reliability Assessment 39.166
Reliability Plan for Regions with Rapid Electrical Load Growth 39.167
Reliability Plan for Permian Basin 39.168
Retail Sales Report 39.201
Cost of Service Tariffs and Charges 39.202
Price to Beat 39.203
Transmission and Distribution Service 39.204
Tariffs for Open Access 39.205
Regulation of Costs Following Freeze Period 39.206
Nuclear Generating Unit Decommissioning Cost Plan 39.251
Definitions 39.252
Right to Recover Stranded Costs 39.253
Allocation of Stranded Costs 39.254
Use of Revenues for Utilities with Stranded Costs 39.255
Use of Revenues for Utilities with No Stranded Costs 39.256
Option to Redirect Depreciation 39.257
Annual Report 39.258
Annual Report: Determination of Annual Costs 39.259
Annual Report: Determination of Invested Capital 39.260
Use of Generally Accepted Accounting Principles 39.261
Review of Annual Report 39.262
True-up Proceeding 39.263
Stranded Cost Recovery of Environmental Cleanup Costs 39.265
Rights Not Affected 39.301
Purpose 39.302
Definitions 39.303
Financing Orders 39.304
Property Rights 39.305
No Setoff 39.306
No Bypass 39.307
True-up 39.308
True Sale 39.309
Security Interests 39.310
Pledge of State 39.311
Tax Exemption 39.312
Not Public Utility 39.313
Severability 39.351
Registration of Power Generation Companies 39.352
Certification of Retail Electric Providers 39.353
Registration of Aggregators 39.354
Registration of Municipal Aggregators 39.355
Registration of Power Marketers 39.356
Revocation of Certification 39.357
Administrative Penalty 39.358
Local Registration of Retail Electric Provider 39.359
Bill Payment Assistance for Burned Veterans 39.360
Transactions with Certain Foreign-owned Companies in Connection with Critical Infrastructure 39.401
Applicability 39.402
Regulation of Utility and Transition to Competition 39.407
Customer Choice and Relevant Market and Related Matters 39.408
Hiring Assistance for Federal Proceedings 39.409
Recoupment of Transition to Competition Costs 39.410
Contractual Obligations 39.451
Applicability 39.452
Regulation of Utility and Transition to Competition 39.453
Customer Choice and Relevant Market and Related Matters 39.454
Recoupment of Transition to Competition Costs 39.455
Recovery of Incremental Capacity Costs 39.456
Franchise Agreements 39.457
Contractual Rights 39.461
Nonbypassable Charges 39.462
Determination of Hurricane Reconstruction Costs 39.463
Severability 39.501
Applicability 39.502
Cost-of-service Regulation 39.503
Transition to Competition 39.504
Hiring Assistance for Federal Proceedings 39.551
Applicability 39.552
Cost-of-service Regulation 39.553
Transition to Competition 39.554
Interconnection of Distributed Renewable Generation 39.555
Marketing of Energy Efficiency and Renewable Energy Programs 39.601
Purpose 39.602
Definitions 39.603
Debt Obligation Order 39.604
Commission-authorized Financing 39.605
Default Charges Nonbypassable 39.606
True-up Mechanism 39.607
Tax Exemption 39.608
Property Rights 39.609
Pledge of State 39.651
Purpose 39.652
Definitions 39.653
Debt Obligation Order 39.654
Commission-authorized Financing 39.655
Other Financial Mechanism 39.656
Uplift Charges Nonbypassable 39.657
True-up 39.658
Tax Exemption 39.659
Severability 39.660
Customer Charges 39.661
Enforcement 39.662
Property Rights 39.663
Pledge of State 39.664
Legal Actions Involving Pricing or Uplift Actions 39.902
Customer Education 39.903
System Benefit Fund 39.905
Goal for Energy Efficiency 39.906
Displaced Workers 39.908
Effect of Sunset Provision 39.909
Plan and Report of Workforce Diversity and Other Business Practices 39.910
Incentive Program and Goal for Energy Efficiency for Military Bases 39.911
Alternative Funding for Energy Efficiency and Renewable Energy Systems 39.912
Report on Combined Heating and Power Technology 39.913
Combining Certain Reports 39.914
Credit for Surplus Solar Generation by Public Schools 39.915
Consideration and Approval of Certain Transactions 39.916
Interconnection of Distributed Renewable Generation 39.917
Texas Electric Grid Security Council 39.918
Utility Facilities for Power Restoration After Significant Power Outage 39.919
Average Total Residential Load Reduction Goals 39.1025
Limitations on Telephone Solicitation 39.1511
Public Meetings of the Governing Body of an Independent Organization 39.1512
Disclosure of Interest in Matter Before Independent Organization’s Governing Body 39.1513
Ercot Board Selection Committee 39.1514
Commission Directives to Independent Organization 39.1515
Wholesale Electric Market Monitor 39.1516
Cybersecurity Monitor 39.1591
Report on Dispatchable and Non-dispatchable Generation Facilities 39.1592
Generation Reliability Requirements 39.1593
Cost Allocation of Reliability Services 39.1594
Reliability Program 39.1595
Grid Reliability Legislative Oversight Committee 39.3515
Aggregate Distributed Energy Resources 39.3535
Military Bases Aggregators 39.3545
Registration of Political Subdivision Aggregators 39.3555
Registration of Brokers 39.4525
Hiring Assistance for Federal Proceedings 39.5021
Metering 39.5521
Metering 39.9016
Nuclear Safety Fee 39.9025
Home Electric Energy Reports 39.9044
Goal for Natural Gas 39.9048
Natural Gas Fuel 39.9051
Energy Efficiency for Municipally Owned Utilities 39.9052
Energy Efficiency for Electric Cooperatives 39.9054
Energy Efficiency Plans and Reports 39.9055
Examination of Demand Response Potential of Seawater Desalination Projects 39.9111
Rules Related to Renewable Power Facilities 39.9112
Report on Transmission and Generation Capacity 39.9113
Renewable Energy Credits 39.9165
Distributed Generation Facility Reporting
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Accessed:
Jun. 5, 2024

§ 39.651’s source at texas​.gov