Bills SB6 and SB7

In the Texas Senate, Bills SB6 and SB7 have passed through required votes and sent on to the House of Representatives.

SB6 would create both an “Insurance Program” of 10 gigawatts of dispatchable generation – with a generator referred to as a “Reliability Asset” and a loan guarantee program for dispatchable generation. Reliability Assets would only be available for dispatch when an emergency is declared by ERCOT that would result in load shedding orders.

SB7 would institute both a “Firming Requirement” and cost allocation methodology for resources that are impacting system reliability and a Dispatchable Reliability Reservice Service, or DRRS, as a new Ancillary Service within ERCOT. New A/S generally require a few years to get to the market.

Obviously there is considerable detail in these bills, and the House will now have its say. More to come…

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