Texas Utilities Code

§ 34.0104 — LOANS FOR ERCOT POWER REGION

UT § 34.0104Title 2. PUBLIC UTILITY REGULATORY ACT · Part B. ELECTRIC UTILITIES · Ch. 34. FACILITY FUNDING · Art. A. TEXAS ENERGY FUND; GRANTS AND LOANS

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(a)The commission may use money in the fund without further appropriation to provide loans to finance upgrades to existing dispatchable electric generating facilities providing power for the ERCOT power region that result in a net increase of at least 100 megawatts of capacity for each facility or the construction of dispatchable electric generating facilities providing power for the ERCOT power region that each have a generation capacity of at least 100 megawatts. For the purposes of this section, a generating facility is considered to be dispatchable if the facility's output can be controlled primarily by forces under human control. An electric energy storage facility is not eligible for a loan under this section.

(b)The commission may provide a construction loan under this section only:

(1)for construction of a facility that will have a generation capacity of at least 100 megawatts and that does not meet the planning model requirements necessary to be included in the Capacity Demand and Reserves Report of the independent organization certified under Section 39.151 for the ERCOT power region before June 1, 2023;

(2)in an amount that does not exceed 60 percent of the estimated cost of the facility to be constructed; and

(3)if the agreement ensures that the loan is to be the senior debt secured by the facility. (b-1) Notwithstanding Subsection (b)(3):

(1)a construction loan provided to a municipally owned utility, or an instrumentality of a municipal corporation established for the benefit of a municipally owned utility, may be in the form of a public security, as defined by Section 1201.002, Government Code, issued by the loan applicant if the public security is payable on a parity basis with other debt of the loan applicant secured by a senior lien on net revenues of the facility or the loan applicant's utility system; and

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