Texas 2011 - 82nd Regular

Texas Senate Bill SB365

Filed
 
Out of Senate Committee
4/20/11  
Voted on by Senate
4/28/11  
Out of House Committee
5/21/11  
Voted on by House
5/25/11  
Governor Action
6/17/11  
Bill Becomes Law
 
Enrolled
5/26/11  

Caption

Relating to distributed generation of electric power.

Impact

The enactment of SB365 could significantly impact Texas's utility regulations by streamlining the process for distributed natural gas generation facilities to connect with the electric grid. Electric utilities and cooperatives would have clearer guidelines on how to manage cost recovery related to upgrades and improvements required for accommodating distributed generation facilities. This change is anticipated to promote energy efficiency and investment in local energy generation, allowing property owners to monetize their energy production and potentially lowering electricity costs for consumers.

Summary

SB365 focuses on the regulation of distributed natural gas generation facilities in Texas, allowing these facilities to generate up to 2,000 kilowatts of electricity on the customer's side of the meter. The bill aims to facilitate interconnections and the sale of electric power generated by these facilities, establishing a structured framework that enables owners or operators to negotiate prices with electricity service providers for the power they generate. This legislation is seen as a progressive step towards enhancing local energy production and diversifying the state's energy mix, encouraging the use of cleaner energy resources.

Contention

While supporters argue that SB365 will spur economic development and provide a cleaner source of electricity, there are concerns regarding the potential financial implications for electric utilities and the overall grid stability. Critics may express worries about the additional costs imposed on utilities for accommodating these new generation points, which might ultimately lead to increased rates for consumers. The resolution of cost disputes mentioned in the bill indicates that the utilities and the regulatory commission will play pivotal roles in managing these dynamics, highlighting the need for careful oversight to balance innovation with consumer protection.

Companion Bills

TX HB225

Identical Relating to distributed generation of electric power.

Previously Filed As

TX SB1752

Relating to the generation and transmission of electricity.

TX HB3390

Relating to the provision of information regarding distributed generation and certain electrical loads.

TX SB6

Relating to the establishment of the Texas Energy Insurance Program and other funding mechanisms to support the construction and operation of electric generating facilities.

TX SB1295

Relating to the provision of information regarding distributed generation and certain electrical loads.

TX HB4287

Relating to the use of customer-sited distributed generation facilities owned by certain non-ERCOT electric utilities.

TX SB1866

Relating to the use of customer-sited distributed generation facilities owned by certain non-ERCOT electric utilities.

TX SB2014

Relating to the legislature's goals for renewable electric generating capacity.

TX SB1212

Relating to the interconnection and integration of distributed energy resources.

TX SB857

Relating to the use of the electric generating facility fund to finance construction and maintenance of electric generating and transmission facilities in the ERCOT power region; authorizing an assessment.

TX HB2793

Relating to the interconnection and integration of distributed energy resources.

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