83R8706 JJT-F By: Anchia H.B. No. 2196 A BILL TO BE ENTITLED AN ACT relating to compensation for surplus electricity generated by distributed renewable generation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 39.916(j), Utilities Code, is amended to read as follows: (j) A [For] distributed renewable generation owner located in an area [owners in areas] in which customer choice has been introduced may [, the distributed renewable generation owner must] sell the owner's surplus electricity produced to any [the] retail electric provider that serves the same competitive region [distributed renewable generation owner's load] at a value agreed to between the distributed renewable generation owner and the retail electric provider [that serves the owner's load which may include, but is not limited to, an agreed value based on the clearing price of energy at the time of day that the electricity is made available to the grid] or in exchange for [it may be] a credit that is applied to the distributed renewable generation owner's customer [an] account during a billing period and that may be carried over to subsequent billing periods until the credit has been redeemed. The independent organization identified in Section 39.151 shall develop procedures so that the amount of electricity purchased from a distributed renewable generation owner under this section is accounted for in settling the total load served by the provider that serves that owner's load [by January 1, 2009]. A distributed renewable generation owner requesting [net] metering services for purposes of this section must have metering devices capable of providing measurements consistent with the independent organization's settlement requirements. SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is amended by adding Section 39.917 to read as follows: Sec. 39.917. EVALUATION OF COMPENSATION FOR DISTRIBUTED GENERATION; ACTION ON TARIFFS. (a) The commission biennially shall investigate whether distributed generation owners and distributed renewable generation owners, as defined by Section 39.916, are receiving fair compensation for the benefits provided to transmission and distribution systems by distributed generation. Not later than December 31 of each even-numbered year, the commission shall report its findings and evaluation of the compensation to the speaker of the house of representatives, the lieutenant governor, and each committee of the house of representatives and senate with primary jurisdiction over electric utilities or the commission. (b) If the commission finds after conducting an investigation under Subsection (a) that distributed generation owners or distributed renewable generation owners are not receiving fair compensation under the terms of the delivery rate tariffs in effect during that period, the commission shall take actions necessary to ensure that the relevant tariffs are amended to provide for adherence to cost-causation rate-making principles in a manner that considers at least transmission and distribution investment deferrals and reductions in congestion costs. SECTION 3. This Act takes effect September 1, 2013.