PUC Approves New Protocols and Forms Relating to Lonestar Infrastructure Protection Act

Texas is one of the states taking a keen interest in whether domestic infrastructure industries obtain services or equipment from China, Russia, North Korea, or Iran. In particular, ERCOT Market Participants mark your calendars for upcoming attestation deadlines. On April 11, 2024 the Public Utility Commission of Texas approved several Nodal Protocol Revision Requests from ERCOT. One of those requests incorporates the updates from the 88^th legislative session to the Lone Star Infrastructure Protection Act. These changes include a requirement to attest to whether the Market Participant has purchased certain equipment or services from companies that are headquartered in or owned, directly or indirectly, by a citizen of China, Russia, North Korea, Iran, or other country designated by the Governor. If a Market Participant has applicable equipment associated with one of these countries, the Market Participant will be required to provide detailed information regarding the equipment and transaction as well as the steps the Market Participant is taking to mitigate external access to the equipment. Attestations for purchases made after June 18, 2021 will be due October 28, 2024. An additional attestation for purchases made between June 8, 2018 and June 18, 2021 will be due December 15, 2024. Market Participants will have ongoing reporting obligations associated with purchases implicated by the new rule. This change will likely be a large compliance lift for many entities and we suggest making sure you understand both the statute and Protocols before beginning to review equipment and purchases.