| 1 | 1 | | 81R10363 TJS-F |
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| 2 | 2 | | By: Lucio III H.B. No. 4641 |
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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 deployment of advanced electric distribution |
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| 8 | 8 | | networks. |
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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. Subchapter C, Chapter 39, Utilities Code, is |
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| 11 | 11 | | amended by adding Section 39.1075 to read as follows: |
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| 12 | 12 | | Sec. 39.1075. ENHANCED ELECTRIC DISTRIBUTION NETWORKS; |
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| 13 | 13 | | PILOT PROGRAM. (a) In this section, "enhanced electric |
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| 14 | 14 | | distribution network" means a two-way communication system and |
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| 15 | 15 | | associated equipment and software that provides real-time |
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| 16 | 16 | | monitoring, diagnostics, and control of electric distribution |
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| 17 | 17 | | lines and other components for an electric delivery system, |
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| 18 | 18 | | designed to improve the efficiency and reliability of the electric |
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| 19 | 19 | | delivery system and to facilitate storm recovery. |
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| 20 | 20 | | (b) Not later than December 1, 2009, each electric utility |
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| 21 | 21 | | shall file with the commission a plan to establish a pilot program |
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| 22 | 22 | | to study the cost-effectiveness of deploying an enhanced electric |
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| 23 | 23 | | distribution network. The commission shall approve or modify a plan |
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| 24 | 24 | | filed under this section not later than May 1, 2010. |
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| 25 | 25 | | (c) A plan filed with the commission under this section must |
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| 26 | 26 | | include a proposal for the treatment of incremental program costs. |
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| 27 | 27 | | Subject to commission approval, the incremental program costs are |
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| 28 | 28 | | recoverable as reasonable and necessary costs under Section |
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| 29 | 29 | | 39.107(h). |
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| 30 | 30 | | (d) At a minimum, a pilot program under this section must: |
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| 31 | 31 | | (1) use advanced technology to operate an integrated |
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| 32 | 32 | | grid network communication system; |
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| 33 | 33 | | (2) operate in a specific geographic area; and |
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| 34 | 34 | | (3) remain in operation for at least six months. |
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| 35 | 35 | | (e) Not later than January 1, 2011, each electric utility |
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| 36 | 36 | | shall file with the commission a report on the results of the |
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| 37 | 37 | | electric utility's pilot program. |
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| 38 | 38 | | (f) This section does not require an electric utility to |
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| 39 | 39 | | conduct or complete a pilot program before implementing a permanent |
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| 40 | 40 | | or long-term enhanced electric distribution network project. |
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| 41 | 41 | | (g) To the extent practicable, an electric utility shall |
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| 42 | 42 | | obtain federal funds to support a pilot program under this section, |
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| 43 | 43 | | including funds from the American Recovery and Reinvestment Act of |
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| 44 | 44 | | 2009 (Pub. L. No. 111-5) or the Energy Independence and Security Act |
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| 45 | 45 | | of 2007 (Pub. L. No. 110-140). |
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| 46 | 46 | | (h) This section expires September 2, 2011. |
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| 47 | 47 | | SECTION 2. This Act takes effect immediately if it receives |
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| 48 | 48 | | a vote of two-thirds of all the members elected to each house, as |
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| 49 | 49 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 50 | 50 | | Act does not receive the vote necessary for immediate effect, this |
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| 51 | 51 | | Act takes effect September 1, 2009. |
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