<article><p>Bills calling for more investment in battery storage technology and demand response programs as well as revisions to utility regulators' authority may be considered in the Texas legislative session that began in January. </p><p>A proposal already filed in the Texas House of Representatives would stifle any renewed talk of a capacity market by prohibiting state regulators from setting a reserve margin above actual or forecast levels of demand in the Electric Reliability Council of Texas (ERCOT), the state's primary grid. 
The bill has already drawn criticism from a trade group of power generation companies. </p><p>Texas Competitive Power Advocates said it had reservations about any legislation "that could unduly restrict regulators and the independent system operator from enforcing current rules or adopting new rules that are necessary to operate a reliable electric market." </p><p>Oncor, Texas largest power delivery company, is expected to seek legislative support to change state law to spur widespread investment by all transmission companies in battery storage technology. </p><p>A national group has also identified ERCOT as a market poised for wider utilization of demand response programs with some revision of current laws. </p><p>While lawmakers will spend most of their time on bills related to ERCOT's $34bn competitive electric market, four vertically integrated utilities will work to convince them to give the Public Utility Commission (PUC) ability to accelerate cost recovery for transmission investments to serve growing territories outside ERCOT. </p><p>Xcel's Southwestern Public Service, El Paso Electric, Entergy Texas and American Electric Power's Southwestern Electric Power want to adjust transmission costs recovery plans twice each year and make post test-year adjustments in rate cases. </p><p>The PUC has included authority to adopt alternative rate-making structures among its list of recommendations included in a biennial 2015 Scope of Competition report submitted to lawmakers. </p><p>Although the PUC traditionally does not propose legislation, other items on their "wish" list include new authority to approve or reject connection of direct-current ties to the ERCOT network; expanded authority over lines built by municipal utilities; and an end to special treatment of new power lines designed to serve areas previously designated as renewable energy zones. </p><p>The PUC also wants authority to issue advisory opinions like other state agencies. </p><p>Texas Senator Troy Fraser (R) appears ready to control all electric legislation this session through the Senate Natural Resource and Economic Development Committee. </p><p>At a hearing last week, Fraser said he is concerned about how the Texas power industry will fare under pending federal environmental standards. "We have a bull's eye on our back," Fraser said.</p><p>The Environmental Protection Agency is not set to issue the final Clean Coal Plan before Texas' current five-month legislative session ends. </p><p>Changes in state law will be needed to allow the Texas Commission on Environmental Quality and other agencies to formulate a state compliance plan before the legislature is scheduled to convene again in 2017, commission chairman Bryan Shaw said.</p><p>eog/ee </p><p><br> Send comments to <a href="mailto:feedback@argusmedia.com" target="_parent"> feedback@argusmedia.com </a></p><p><u><a href="http://www.argusmedia.com/Info/General/News" target="_TOP"> Request more information </a></u> about Argus' energy and commodity news, data and analysis services. </p><p><i> Copyright © 2015 Argus Media Ltd - <a href="http://www.argusmedia.com/" target="_TOP"> www.argusmedia.com </a> - All rights reserved. </i></p></article>
