By: Rodriguez S.B. No. 1910
A BILL TO BE ENTITLED
AN ACT
relating to the delay of the transition to competition for an
electric utility located in the Western Electricity Coordinating
Council service area and net metering requirements for a certain
non-ERCOT electric utility and relating to energy efficiency goals
and programs for a certain non-ERCOT utility
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 39, Utilities Code, is amended by adding
Subchapter L to read as follows:
SUBCHAPTER L. TRANSITION TO COMPETITION FOR CERTAIN
AREAS OUTSIDE OF ERCOT
Sec. 39.551. APPLICABILITY. (a) This subchapter applies
only to an investor-owned electric utility:
(1) that is operating solely outside of ERCOT in areas
of this state that were included in the Western Electricity
Coordinating Council on January 1, 2011;
(2) that was not affiliated with ERCOT on January 1,
2011; and
(3) to which Subchapters I, J, and K do not apply.
(b) The legislature finds that an electric utility subject
to this subchapter is unable at this time to offer fair competition
and reliable service to all retail customer classes in the area
served by the utility. As a result, the introduction of retail
competition for such an electric utility is delayed until fair
competition and reliable service are available to all retail
customer classes as determined under this subchapter.
Sec. 39.552. COST-OF-SERVICE REGULATION. (a) Until the
date on which an electric utility subject to this subchapter is
authorized by the commission under Section 39.553(f) to implement
retail customer choice, the rates of the utility are subject to
regulation under Chapter 36.
(b) Until the date on which an electric utility subject to
this subchapter implements customer choice, the provisions of this
chapter, other than this subchapter and Sections 39.904 and 39.905,
do not apply to that utility.
Sec. 39.553. TRANSITION TO COMPETITION. (a) The events
prescribed by Subsections (b)-(f) shall be followed to introduce
retail competition in the service area of an electric utility
subject to this subchapter. The commission shall ensure that the
listed items in each stage are completed before the next stage is
initiated. Unless stated otherwise, the commission shall conduct
each activity with the electric utility and other interested
parties. The commission may modify the sequence of events required
by Subsections (b)-(e), but not the substance of the requirements,
if the commission finds good cause to do so. Full retail
competition may not begin in the service area of an electric utility
subject to this subchapter until all actions prescribed by those
subsections are completed.
(b) The first stage for the transition to competition
consists of the following activities:
(1) approval of a regional transmission organization
by the Federal Energy Regulatory Commission for the power region
that includes the electric utility's service area and commencement
of independent operation of the transmission network under the
approved regional transmission organization;
(2) development of retail market protocols to
facilitate retail competition; and
(3) completion of an expedited proceeding to develop
nonbypassable delivery rates for the customer choice pilot project
to be implemented under Subsection (c)(1).
(c) The second stage for the transition to competition
consists of the following activities:
(1) initiation of the customer choice pilot project in
accordance with Section 39.104;
(2) development of a balancing energy market, a market
for ancillary services, and a market-based congestion management
system for the wholesale market in the power region in which the
regional transmission organization operates; and
(3) implementation of a seams agreement with adjacent
power regions to reduce barriers to entry and facilitate
competition.
(d) The third stage for the transition to competition
consists of the following activities:
(1) the electric utility filing with the commission:
(A) an application for business separation in
accordance with Section 39.051;
(B) an application for unbundled transmission
and distribution rates in accordance with Section 39.201;
(C) an application for certification of a
qualified power region in accordance with Section 39.152; and
(D) an application for price-to-beat rates in
accordance with Section 39.202;
(2) the commission:
(A) approving a business separation plan for the
utility;
(B) setting unbundled transmission and
distribution rates for the utility;
(C) certifying a qualified power region, which
includes conducting a formal evaluation of wholesale market power
in the region, in accordance with Section 39.152;
(D) setting price-to-beat rates for the utility;
and
(E) determining which competitive energy
services must be separated from regulated utility activities in
accordance with Section 39.051; and
(3) completion of the testing of retail and wholesale
systems, including those systems necessary for switching customers
to the retail electric provider of their choice and for settlement
of wholesale market transactions, by the regional transmission
organization, the registration agent, and market participants.
(e) The fourth stage for the transition to competition
consists of the following activities:
(1) commission evaluation of the results of the pilot
project;
(2) initiation by the electric utility of a capacity
auction in accordance with Section 39.153 at a time to be determined
by the commission; and
(3) separation by the utility of competitive energy
services from its regulated utility activities, in accordance with
the commission order approving the separation of competitive energy
services.
(f) The fifth stage for the transition to competition
consists of the following activities:
(1) evaluation by the commission of whether the
electric utility can offer fair competition and reliable service to
all retail customer classes in the area served by the utility, and:
(A) if the commission concludes that the electric
utility can offer fair competition and reliable service to all
retail customer classes in the area served by the utility, the
commission issuing an order initiating retail competition for the
utility; and
(B) if the commission determines that the
electric utility cannot offer fair competition and reliable service
to all retail customer classes in the area served by the utility,
the commission issuing an order further delaying retail competition
for the utility; and
(2) on the issuance of an order from the commission
initiating retail competition for the utility, completion by the
utility of the business separation and unbundling in accordance
with the commission order approving the unbundling.
Sec. 39.554 INTERCONNECTION OF DISTRIBUTED RENEWABLE
GENERATION. (a) In this section:
(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.
(2) "Renewable energy" means any technology that
exclusively relies on an energy source that is naturally
regenerated over a short period of time.
(3) "Distributed renewable generation owner" has the
same meaning as that assigned under Section 39.916(a).
(4) "Interconnection" means the right of a distributed
renewable generation owner to physically connect distributed
renewable generation to an electricity distribution system, and the
technical requirements, rules, or processes for the connection.
(5) "Surplus electricity" means electricity generated
by distributed renewable generation that is not consumed at the
place the distributed renewable generation is installed and that
flows onto the electric distribution system of an electric utility
that this subsection applies.
(6) "Net consumption" means the total load of the
electric utility's retail customers less the power supplied by the
qualifying facility to meet any portion of that load.
(7) "Net production" means the total power supplied by
the qualifying facility less the power requirements of the retail
electric customer.
(b) A distributed renewable generation owner may request
interconnection by filing an application for interconnection with
the electric utility. A retail customer's application for
interconnection with an electricity utility in accordance with this
subsection is subject to the safety and reliability requirements of
the electric utility. Procedures of the electric utility for the
submission and processing of a distributed renewable generation
owner's application for interconnection shall be consistent with
rules adopted by the commission regarding interconnection.
(c) The electric utility shall install, own and maintain the
meter and metering equipment. The retail electric customer shall
install a customer-furnished meter socket or metering cabinet, or
both, at the electric utility's designated location solely on the
retail electric customer's premises. The electric utility, at its
own expense, may install load research metering equipment solely on
the retail electric customer's premises. The retail electric
customer shall also supply, at no expense to the electric utility, a
suitable location for meters and associated equipment that will be
used for billing and for load research.
(d) For a retail electric customer:
(1) that is an apartment house for occupancy by
low-income elderly tenants, reasonably expected to generate no less
than 50% of its annual energy use with distributed renewable
generation and qualifying for master metering pursuant to Utilities
Code Section 184.012(b); or,
(2) having a qualifying facility with a design
capacity which is 50 kW or less, and such distributed renewable
generation or qualifying facility is rated to produce an amount of
electricity that is less than or equal to the amount of electricity
the retail electricity customer consumed in the twelve month period
prior to installation of the qualifying facility or for new
facilities their estimated annual kilowatt hour consumption, in
addition to the metering options in PURA ยง 39.916(f) shall also be
provided with the additional option of interconnection with the
electric utility through a single meter that runs forward and
backward. Any net consumption for a given billing period shall be
billed in accordance with the standard tariff applicable to the
customer class to which the user of the qualifying facility's
output belongs. Any production in excess of consumption for a given
billing period shall be purchased in accordance with the provisions
of the electric utility's rate schedule as approved by the
commission in its most recent rate case.
(e) An electric utility that purchases surplus generated
electricity from a distributed renewable generation owner in
accordance with this subsection shall purchase surplus generated
electricity generated by the renewable generation owner at the cost
of the electric utility as determined by commission rule, and:
(1) the electric utility shall take reasonable steps
to inform the distributed renewable generation owner of the amount
of surplus electricity purchased as measured in kilowatt hours
during the retail customers most recent billing cycle; and
(2) the amount of any credit balance on a monthly bill
of a retail electric customer with distributed renewable energy may
be carried forward on the retail customer's bill until the credit
exceeds $50 at which time the electric utility must provide a refund
of the credit balance to the customer.
Sec. 39.555 MARKETING OF ENERGY EFFICIENCY AND RENEWABLE
ENERGY PROGRAMS. (a) an electric utility subject to this
subchapter may directly market energy efficiency and renewable
energy programs to retail electric customers within its service
territory and provide rebate or incentive funds directly to its
customers to promote or facilitate the success of the programs
subject to Section 39.905.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.