| 1 | 1 | | 81R11369 TRH-D |
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| 2 | 2 | | By: Farrar H.B. No. 2776 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the requirement for commercially reasonable, long-term |
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| 8 | 8 | | contracts for renewable energy. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 39.904, Utilities Code, is amended by |
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| 11 | 11 | | adding Subsection (a-1) to read as follows: |
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| 12 | 12 | | (a-1) To ensure that the goals of Subsection (a) are met, |
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| 13 | 13 | | the commission by rule shall require a retail electric provider, |
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| 14 | 14 | | municipally owned utility, or electric cooperative that purchases |
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| 15 | 15 | | renewable energy to enter into commercially reasonable long-term |
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| 16 | 16 | | contracts for that renewable energy. The commission by rule shall |
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| 17 | 17 | | determine the criteria for the commercial reasonableness of a |
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| 18 | 18 | | contract under this subsection. At a minimum, commission rules |
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| 19 | 19 | | shall require a contract to be for a term of 10 to 15 years. |
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| 20 | 20 | | SECTION 2. The changes in law made by this Act apply only to |
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| 21 | 21 | | a contract for renewable energy that is entered into on or after the |
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| 22 | 22 | | effective date of this Act. A contract that is entered into before |
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| 23 | 23 | | the effective date of this Act is subject to the law in effect on |
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| 24 | 24 | | that date, and that law is continued in effect for that purpose. |
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| 25 | 25 | | SECTION 3. The Public Utility Commission of Texas shall |
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| 26 | 26 | | adopt rules consistent with Section 39.904(a-1), Utilities Code, as |
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| 27 | 27 | | added by this Act, not later than December 1, 2009. |
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| 28 | 28 | | SECTION 4. This Act takes effect September 1, 2009. |
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