Texas Senate Bill SB1420

Texas 2009 - 81st Regular

Caption

Relating to the sale of electric energy produced by distributed renewable generation owners.

Impact

If enacted, SB1420 would significantly impact the energy market in Texas by encouraging the adoption of distributed renewable energy technologies, particularly solar power. The bill mandates the establishment of a framework within the Electric Reliability Council of Texas (ERCOT) to ensure that customers with distributed generation can engage in the sale of excess energy. Additionally, it empowers the Public Utility Commission to set criteria for a viable market where retail electric providers must offer competitive rates for the excess energy from distributed generation owners.

Summary

SB1420 addresses the sale of electric energy produced by distributed renewable generation owners in Texas. This legislation amends the Utilities Code to define 'electric utility' more clearly, specifying which entities qualify and which do not. The bill aims to facilitate the sale of surplus energy generated from renewable sources, providing an avenue for individuals and entities that produce electricity to monetize their excess production. It includes provisions for net metering that would benefit independent school districts, allowing them to sell surplus solar energy back to the grid.

Contention

Notable points of contention surrounding SB1420 may arise from the potential implications for existing electric utility providers and their market dominance. Some stakeholders may express concerns that the bill could create an uneven playing field, benefiting independent renewable producers at the expense of traditional utility companies. Additionally, there could be debate about the adequacy of measures intended to ensure fair pricing and access to the grid for those providing renewable energy. The effectiveness of the rules established concerning net metering and excess energy sales may also be scrutinized in public discussions.