81R8842 JJT-D
By: Farabee H.B. No. 1643
A BILL TO BE ENTITLED
AN ACT
relating to net metering for retail electric service customers and
compensation for excess electricity generated by certain renewable
energy technology generators.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Section 39.923 to read as follows:
Sec. 39.923. NET METERING AND FAIR MARKET COMPENSATION OF
ON-SITE ENERGY PRODUCTION FOR RETAIL CUSTOMERS. (a) In this
section:
(1) "Net metering service" means electric service for
which a retail electric provider's customer is:
(A) billed according to the difference between
the amount of electricity provided by the retail electric provider
to the customer during a billing period and the amount of
electricity delivered from the customer's side of the meter using
renewable energy technology; and
(B) credited over an annualized period for the
amount of electricity delivered from the customer's side of the
meter using renewable energy technology when that amount is greater
than the amount the retail electric provider delivers to the
customer.
(2) "Renewable energy technology" has the meaning
assigned by Section 39.904(d).
(b) Notwithstanding any other law, the commission by rule
shall require an electric utility, retail electric provider,
electric cooperative, or municipally owned utility to offer net
metering service to all retail customers of the utility, provider,
or cooperative who have an eligible on-site generating facility
that generates electricity using renewable energy technology. In
developing rules under this subsection, the commission shall
consider model net metering rules published by the Interstate
Renewable Energy Council and similar model rules.
(c) Rules adopted under Subsection (b) must provide:
(1) that a retail customer is entitled to compensation
at fair market value for metered electricity produced by the
customer's eligible on-site renewable energy technology generating
facility and delivered to the electric transmission grid;
(2) that, to the extent a retail customer earns a
credit for the value of the customer's electricity delivered to the
electric transmission grid, the electric utility, retail electric
provider, electric cooperative, or municipally owned utility must
pay the customer the excess value or allow the credit to offset
later charges that accrue; and
(3) for a retail customer to receive payment for
excess energy credits from the utility, provider, or cooperative if
the customer terminates service.
(d) The commission by rule may establish standards an
on-site renewable energy technology generating facility must meet
to be eligible for compensation under Subsection (b), including
standards for generating facility equipment and for
interconnection. The standards must be designed so that
small-scale renewable energy technology generating facilities
located at residential and business addresses are eligible for the
compensation.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.