Texas 2009 - 81st Regular

Texas House Bill HB1866 Compare Versions

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1	1	By: Solomons H.B. No. 1866
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to distributed renewable generation of electric power.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 17.002, Utilities Code, is amended by
9	9	adding Subdivision (4-a) to read as follows:
10	10	(4-a) "Distributed renewable generation" has the
11	11	meaning assigned by Section 39.916.
12	12	SECTION 2. Section 17.004, Utilities Code, is amended by
13	13	adding Subsection (a-1) to read as follows:
14	14	(a-1) All buyers of retail electric services are entitled to
15	15	the opportunity to interconnect distributed renewable generation
16	16	according to conditions established by commission rule.
17	17	SECTION 3. Section 17.006, Utilities Code, is amended to
18	18	read as follows:
19	19	Sec. 17.006. PROTECTIONS FOR CUSTOMERS OF ELECTRIC
20	20	COOPERATIVES. (a) An electric cooperative shall not be deemed
21	21	to be a "service provider" or "billing agent" for purposes of
22	22	Sections 17.156(b) and (e), except that, for purposes of enforcing
23	23	Section 17.004(a-1), an electric cooperative is a "service
24	24	provider" under Section 17.156(b).
25	25	(b) An [The] electric cooperative shall adopt, implement,
26	26	and enforce rules that shall have the effect of accomplishing the
27	27	objectives set out in Sections 17.004(a), (a-1), and (b) and
28	28	Section 17.102. The board of directors of an [the] electric
29	29	cooperative or its designee shall perform the dispute resolution
30	30	function provided for by Section 17.157 for electric customers
31	31	served by the electric cooperative within its certificated service
32	32	area. With respect to electric customers served by an electric
33	33	cooperative outside its certificated service area or otherwise
34	34	served through others' distribution facilities, after the
35	35	legislature authorizes retail competition, the provisions of this
36	36	chapter as administered by the commission shall apply. Nothing in
37	37	this chapter shall be deemed to apply to a wholesale customer of an
38	38	electric cooperative.
39	39	SECTION 4. Section 31.002(6), Utilities Code, is amended to
40	40	read as follows:
41	41	(6) "Electric utility" means a person or river
42	42	authority that owns or operates for compensation in this state
43	43	equipment or facilities to produce, generate, transmit,
44	44	distribute, sell, or furnish electricity in this state. The term
45	45	includes a lessee, trustee, or receiver of an electric utility and a
46	46	recreational vehicle park owner who does not comply with Subchapter
47	47	C, Chapter 184, with regard to the metered sale of electricity at
48	48	the recreational vehicle park. The term does not include:
49	49	(A) a municipal corporation;
50	50	(B) a qualifying facility;
51	51	(C) a power generation company;
52	52	(D) an exempt wholesale generator;
53	53	(E) a power marketer;
54	54	(F) a corporation described by Section 32.053 to
55	55	the extent the corporation sells electricity exclusively at
56	56	wholesale and not to the ultimate consumer;
57	57	(G) an electric cooperative;
58	58	(H) a retail electric provider;
59	59	(I) this state or an agency of this state; [or]
60	60	(J) a person not otherwise an electric utility
61	61	who:
62	62	(i) furnishes an electric service or
63	63	commodity only to itself, its employees, or its tenants as an
64	64	incident of employment or tenancy, if that service or commodity is
65	65	not resold to or used by others;
66	66	(ii) owns or operates in this state
67	67	equipment or facilities to produce, generate, transmit,
68	68	distribute, sell, or furnish electric energy to an electric
69	69	utility, if the equipment or facilities are used primarily to
70	70	produce and generate electric energy for consumption by that
71	71	person; or
72	72	(iii) owns or operates in this state a
73	73	recreational vehicle park that provides metered electric service in
74	74	accordance with Subchapter C, Chapter 184; or
75	75	(K) a distributed renewable generation owner, as
76	76	defined by Section 39.916, or a person with whom a retail electric
77	77	customer contracts to install or maintain distributed renewable
78	78	generation on the customer's side of the meter.
79	79	SECTION 5. Section 39.916(d), Utilities Code, is amended to
80	80	read as follows:
81	81	(d) The commission by rule shall establish safety,
82	82	technical, and performance standards for distributed renewable
83	83	generation that may be interconnected. In adopting the rules, the
84	84	commission shall consider standards published by the Underwriters
85	85	Laboratories, the National Electric Code, the National Electric
86	86	Safety Code, and the Institute of Electrical and Electronics
87	87	Engineers. The commission may not require a distributed renewable
88	88	generation owner or a person who contracts with a customer to
89	89	install or maintain distributed renewable generation on the
90	90	customer's side of the meter to register as a power generation
91	91	company.
92	92	SECTION 6. Section 41.004, Utilities Code, is amended to
93	93	read as follows:
94	94	Sec. 41.004. JURISDICTION OF COMMISSION. Except as
95	95	specifically provided otherwise in this chapter, the commission has
96	96	jurisdiction over electric cooperatives only as follows:
97	97	(1) to regulate wholesale transmission rates and
98	98	service, including terms of access, to the extent provided in
99	99	Subchapter A, Chapter 35;
100	100	(2) to regulate certification to the extent provided
101	101	in Chapter 37;
102	102	(3) to establish a code of conduct as provided in
103	103	Section 39.157(e) subject to Section 41.054;
104	104	(4) to establish terms and conditions, but not rates,
105	105	for open access to distribution facilities for electric
106	106	cooperatives providing customer choice, as provided in Section
107	107	39.203; [and]
108	108	(5) to require reports of electric cooperative
109	109	operations only to the extent necessary to:
110	110	(A) ensure the public safety;
111	111	(B) enable the commission to satisfy its
112	112	responsibilities relating to electric cooperatives under this
113	113	chapter;
114	114	(C) enable the commission to determine the
115	115	aggregate electric load and energy requirements in the state and
116	116	the resources available to serve that load; or
117	117	(D) enable the commission to determine
118	118	information relating to market power as provided in Section 39.155;
119	119	and
120	120	(6) to establish conditions under which customers may
121	121	interconnect distributed renewable generation, as defined by
122	122	Section 39.916.
123	123	SECTION 7. Section 41.055, Utilities Code, is amended to
124	124	read as follows:
125	125	Sec. 41.055. JURISDICTION OF BOARD OF DIRECTORS. A board
126	126	of directors has exclusive jurisdiction to:
127	127	(1) set all terms of access, conditions, and rates
128	128	applicable to services provided by the electric cooperative, except
129	129	as provided by Sections 41.004, 41.054, and 41.056, including
130	130	nondiscriminatory and comparable rates for distribution but
131	131	excluding wholesale transmission rates, terms of access, and
132	132	conditions for wholesale transmission service set by the commission
133	133	under Subchapter A, Chapter 35, provided that the rates for
134	134	distribution established by the electric cooperative shall be
135	135	comparable to the distribution rates that apply to the electric
136	136	cooperative and its subsidiaries;
137	137	(2) determine whether to unbundle any energy-related
138	138	activities and, if the board of directors chooses to unbundle,
139	139	whether to do so structurally or functionally;
140	140	(3) reasonably determine the amount of the electric
141	141	cooperative's stranded investment;
142	142	(4) establish nondiscriminatory transition charges
143	143	reasonably designed to recover the stranded investment over an
144	144	appropriate period of time;
145	145	(5) determine the extent to which the electric
146	146	cooperative will provide various customer services, including
147	147	nonelectric services, or accept the services from other providers;
148	148	(6) manage and operate the electric cooperative's
149	149	utility systems, including exercise of control over resource
150	150	acquisition and any related expansion programs;
151	151	(7) establish and enforce service quality standards,
152	152	reliability standards, and consumer safeguards designed to protect
153	153	retail electric customers;
154	154	(8) determine whether a base rate reduction is
155	155	appropriate for the electric cooperative;
156	156	(9) determine any other utility matters that the board
157	157	of directors believes should be included;
158	158	(10) sell electric energy and capacity at wholesale,
159	159	regardless of whether the electric cooperative participates in
160	160	customer choice;
161	161	(11) determine the extent to which the electric
162	162	cooperative offers energy efficiency programs and how the programs
163	163	are administered by the electric cooperative; and
164	164	(12) make any other decisions affecting the electric
165	165	cooperative's method of conducting business that are not
166	166	inconsistent with the provisions of this chapter.
167	167	SECTION 8. This Act takes effect September 1, 2009.