The Pubic Utility Commission has adopted new rules relating to the Texas Energy Fund In-ERCOT Generation Loan Program as established by SB 2627 88(R). The new rule establishes procedures for applying for a loan for construction of dispatchable electric generation facilities within the ERCOT region, evaluation criteria, and terms for repayment. The new rule will also specify performance standards that will be included in the terms of the loan, to which a loan recipient must adhere. The rule establishes the following standards, among others:

  • Requires PGC registration for awarded entities, but does not require registration as a condition of application on the chance that the commission rejects an applicant’s proposal.
  • Requiring an applicant to register as a PGC would exclude MOUs, electric cooperatives, and river authorities. In order for a generation facility to provide energy and ancillary services to the ERCOT system, be available for reliability unit commitment, and make energy offers, the facility must be registered with ERCOT as a GR.
  • To determine whether an electric generating facility will be used primarily to serve an industrial load or PUN, the adopted rule relies upon a calculation of excess dispatchable capacity of the generation resources located at the facility.
  • An applicant for a TEF loan must attest that it will provide at least the greater of 100 MW or 50 percent of the nameplate capacity to the ERCOT market.
  • The commission determined that the eligibility threshold for a project will be measured by nameplate capacity, rather than energy output.

The PUC received a multitude of public comments, an overview of which can be found here in the rule text. The rule is now effective.