Implementation Background

In 2006, the PUCT established new Substantive Rule §25.174 to address the Competitive Renewable Energy Zones (CREZ) legislative mandate. The "CREZ rule" requires among other things:

• The Electric Reliability Council of Texas (ERCOT) to provide a study of the wind energy production potential statewide, and of the transmission constraints most likely to limit the deliverability of wind energy resources and,
• PUCT designation of CREZs following receipt of the ERCOT study of statewide wind production potential. In determining whether to designate an area as a CREZ and the number of CREZs to designate, the commission must consider:

whether renewable energy resources and suitable land areas are sufficient to develop generating capacity from renewable energy technologies;

the level of financial commitment by generators; and

other factors considered appropriate, i.e. estimated cost of constructing transmission capacity necessary, estimated benefits of renewable energy produced in a zone.

Designate a plan for transmission to deliver these resources in a manner most cost effective and beneficial to customers.

In order to implement the directives of the new CREZ rule, a number of initiatives have been introduced (and completed) in various arenas.

Click here for complete text of the Public Utility Commission of Texas rule.