81R9104 JJT-D
By: Lucio S.B. No. 1420
A BILL TO BE ENTITLED
AN ACT
relating to the sale of electric energy produced by distributed
renewable generation owners.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.002(6), Utilities Code, is amended to
read as follows:
(6) "Electric utility" means a person or river
authority that owns or operates for compensation in this state
equipment or facilities to produce, generate, transmit,
distribute, sell, or furnish electricity in this state. The term
includes a lessee, trustee, or receiver of an electric utility and a
recreational vehicle park owner who does not comply with Subchapter
C, Chapter 184, with regard to the metered sale of electricity at
the recreational vehicle park. The term does not include:
(A) a municipal corporation;
(B) a qualifying facility;
(C) a power generation company;
(D) an exempt wholesale generator;
(E) a power marketer;
(F) a corporation described by Section 32.053 to
the extent the corporation sells electricity exclusively at
wholesale and not to the ultimate consumer;
(G) an electric cooperative;
(H) a retail electric provider;
(I) this state or an agency of this state; or
(J) a person not otherwise an electric utility
who:
(i) furnishes an electric service or
commodity only to itself, its employees, or its tenants as an
incident of employment or tenancy, if that service or commodity is
not resold to or used by others;
(ii) owns or operates in this state
equipment or facilities to produce, generate, transmit,
distribute, sell, or furnish electric energy to an electric
utility, if the equipment or facilities are used primarily to
produce and generate electric energy for consumption by that
person; [or]
(iii) owns or operates in this state a
recreational vehicle park that provides metered electric service in
accordance with Subchapter C, Chapter 184; or
(iv) is a distributed renewable generation
owner as defined by Section 39.916.
SECTION 2. Section 39.914(a), Utilities Code, is amended to
read as follows:
(a) After December 1, 2009, on the request of an independent
school district, an [An] electric utility or retail electric
provider shall provide for net metering and contract with the [an
independent school] district so that under the contract:
(1) surplus electricity produced by a school
building's solar electric generation panels is made available for
sale to the electric transmission grid and distribution system; and
(2) the retail [net] value of that surplus electricity
is credited to the district.
SECTION 3. Section 39.916(a)(1), Utilities Code, is amended
to read as follows:
(1) "Distributed renewable generation" means electric
generation with a capacity of not more than 2,000 kilowatts
provided by a renewable energy technology, as defined by Section
39.904, that is installed on a retail electric customer's side of
the meter, including electric generation by solar generating
equipment connected to the customer's side of the meter but that is
located elsewhere on the same property or is located on contiguous
property or on property separated by an easement, a public road, or
a right-of-way for transportation or utility purposes.
SECTION 4. Section 39.916, Utilities Code, is amended by
adding Subsection (k) to read as follows:
(k) The commission by rule shall require a retail electric
provider that offers to purchase excess electricity produced by
distributed renewable generation to include line items on each bill
of a customer who is a distributed renewable generation owner that
inform the customer of:
(1) the capacity of the customer's distributed
renewable generation system;
(2) the amount of excess electricity produced by the
customer's distributed renewable generation system purchased by
the retail electric provider, in terms of kilowatt hours; and
(3) the average price the retail electric utility paid
for each kilowatt hour of the excess electricity produced by the
customer's distributed renewable generation system.
SECTION 5. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Sections 39.926 and 39.927 to read as follows:
Sec. 39.926. INFORMATION ON INTERNET REGARDING PURCHASE OF
EXCESS ELECTRICITY PRODUCED BY DISTRIBUTED RENEWABLE GENERATION.
(a) On the Internet website found at http://www.powertochoose.org,
the commission shall provide for access to easily comparable
information regarding retail electric providers' offers to
distributed renewable generation owners for their surplus
electricity, including information regarding contract terms and
whether the retail electric provider makes no offer for surplus
electricity.
(b) On the Internet website found at
http://www.powertochoose.org, the commission shall provide for
access to easily comparable information regarding offers of
renewable energy credit marketers to distributed renewable
generation owners.
(c) The commission by rule shall require transmission and
distribution utilities and retail electric providers to provide on
publicly accessible Internet websites information on purchase
price offers per kilowatt hour for excess electricity produced by
distributed renewable generation and information instructing
customers with distributed renewable generation on how to request
and obtain the purchase rates offered.
Sec. 39.927. VIABILITY OF MARKET FOR DISTRIBUTED RENEWABLE
GENERATION EXCESS ENERGY. (a) In this section:
(1) "Distributed renewable generation" has the
meaning assigned by Section 39.916.
(2) "Excess energy" means electric energy produced by
a customer's distributed renewable generation installed on the
customer's side of the meter and made available for sale to the
electric transmission grid and distribution system.
(b) On or before December 1, 2010, the commission by rule
shall establish criteria for determining whether there is a viable
market in ERCOT for the sale of excess energy. To be considered
viable, the market must provide for:
(1) each customer in ERCOT to have available at least
one offer for excess energy at a rate equal to at least 80 percent of
the retail price for energy; and
(2) each customer in ERCOT to have available at least
two different offers for excess energy in addition to an offer
described by Subdivision (1).
(c) The commission shall require the independent
organization certified under Section 39.151 to monitor the
development and implementation of a competitive market in ERCOT for
the sale of excess energy. The rules must provide a mechanism for
the organization to monitor retail electric providers' offers to
purchase excess energy and rates of customers' sales of excess
energy.
(d) Not later than September 1, 2010, the organization shall
publish and provide to the commission a report that identifies the
rates of excess energy market participation by retail electric
providers and customers with distributed renewable generation in
ERCOT. The report must include:
(1) the organization's assessment of the development
of the market in ERCOT for the sale of excess energy and whether
that market is viable according to the criteria adopted under
Subsection (b);
(2) the rate of adoption by customers in ERCOT of
distributed renewable generation by solar energy technologies; and
(3) the following information regarding each retail
electric provider in ERCOT:
(A) whether the provider offers to purchase
excess energy;
(B) for a provider that offers to purchase excess
energy, the provider's:
(i) average ratio of retail prices to
excess energy purchase prices for kilowatt hour units;
(ii) average monthly purchases; and
(iii) average purchases for the year for
each customer class; and
(C) the percentage and number of the provider's
customers who have adopted distributed renewable generation by
solar energy technologies.
(e) If the independent organization's report under
Subsection (d) concludes that the market for the sale of excess
energy is not viable according to the criteria adopted under
Subsection (b), not later than December 1, 2010, the commission by
rule shall require all retail electric providers to offer net
metering services and advanced meter information networks to all
customers in all customer classes.
(f) Subsections (a)-(d) and this subsection expire
September 2, 2011.
SECTION 6. Section 39.351, Utilities Code, is amended by
adding Subsection (d) to read as follows:
(d) Notwithstanding Subsection (a), a distributed renewable
generation owner as defined by Section 39.916 may generate
electricity without registering as a power generation company.
SECTION 7. This Act takes effect September 1, 2009.