Texas House Bill HB4579

Texas 2009 - 81st Regular

Caption

Relating to distributed generation of electric power.

Impact

The bill introduces provisions that allow owners or operators of distributed generation facilities to sell electricity at wholesale. This operational change could significantly affect the electric utility and retail electric provider landscape by mandating that these entities must purchase energy generated by distributed facilities at prices determined by the state commission. This could ensure that energy prices are kept fair and in alignment with market values, potentially encouraging more investments in local and renewable energy projects.

Summary

House Bill 4579 aims to promote the distributed generation of electric power in Texas by amending the definition and regulatory framework surrounding electricity generation facilities. Specifically, it defines a distributed generation facility as one with a capacity not exceeding 5,000 kilowatts, which is installed on the customer's side of the meter. This distinction is important as it enables smaller, localized power generation units to be recognized and integrated into the broader energy market, facilitating a move towards more decentralized energy systems.

Contention

One notable point of contention surrounding HB4579 could be the impact on the existing energy market structure and how it might shift power dynamics between large utility companies and smaller power generation facilities. There are concerns from traditional utilities about the reliability and efficiency of smaller distributed generation systems, especially when integrated into the grid. Additionally, there may be debates regarding the regulatory oversight and how the pricing mechanisms will affect both energy suppliers and consumers.