Texas 2013 - 83rd Regular

Texas Senate Bill SB1239 Compare Versions

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1	1	By: Rodriguez S.B. No. 1239
2	2	(In the Senate - Filed March 6, 2013; March 13, 2013, read
3	3	first time and referred to Committee on Business and Commerce;
4	4	May 2, 2013, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 6, Nays 0; May 2, 2013, sent
6	6	to printer.)
7	7	COMMITTEE SUBSTITUTE FOR S.B. No. 1239 By: Watson
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to distributed renewable generation and compensation for
13	13	excess electricity generated by distributed renewable generation.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. Section 39.002, Utilities Code, is amended to
16	16	read as follows:
17	17	Sec. 39.002. APPLICABILITY. Except as provided by this
18	18	section, this [This] chapter, other than Sections 39.155,
19	19	39.157(e), 39.203, 39.903, 39.904, 39.9051, 39.9052, and
20	20	39.914(e), does not apply to a municipally owned utility or to an
21	21	electric cooperative. Sections 39.157(e), 39.203, and 39.904[,
22	22	however,] apply only to a municipally owned utility or an electric
23	23	cooperative that is offering customer choice. Section 39.9161
24	24	applies to a municipally owned utility. Section 39.9162 applies to
25	25	an electric cooperative. If there is a conflict between the
26	26	specific provisions of this chapter and any other provisions of
27	27	this title, except for Chapters 40 and 41, the provisions of this
28	28	chapter control.
29	29	SECTION 2. The heading to Section 39.916, Utilities Code,
30	30	is amended to read as follows:
31	31	Sec. 39.916. [INTERCONNECTION OF] DISTRIBUTED RENEWABLE
32	32	GENERATION.
33	33	SECTION 3. Subsection (a), Section 39.916, Utilities Code,
34	34	is amended by adding Subdivision (4) to read as follows:
35	35	(4) "Surplus electricity" means electricity generated
36	36	by distributed renewable generation that is not consumed at the
37	37	place the distributed renewable generation is installed and that
38	38	flows onto the electric distribution system.
39	39	SECTION 4. Section 39.916, Utilities Code, is amended by
40	40	amending Subsections (c), (f), and (j) and adding Subsections
41	41	(k-1), (l), (m), (n), (o), and (p) to read as follows:
42	42	(c) A distributed renewable generation owner [customer] may
43	43	request interconnection by filing an application for
44	44	interconnection with the transmission and distribution utility or
45	45	electric utility. Procedures of a transmission and distribution
46	46	utility or electric utility for the submission and processing of a
47	47	distributed renewable generation owner's [customer's] application
48	48	for interconnection shall be consistent with rules adopted by the
49	49	commission regarding interconnection.
50	50	(f) On request of a distributed renewable generation owner,
51	51	a [A] transmission and distribution utility or electric utility
52	52	shall make available to the [a] distributed renewable generation
53	53	owner for purposes of this section metering required for services
54	54	provided under this section, including separate meters that measure
55	55	the load and generator output or a single meter capable of measuring
56	56	in-flow and out-flow at the point of common coupling meter point.
57	57	The distributed renewable generation owner must pay the
58	58	differential cost of the metering unless the meters are provided at
59	59	no additional cost. Except as provided by this section, Section
60	60	39.107 applies to metering under this section.
61	61	(j) A [For] distributed renewable generation owner who
62	62	chooses to sell the owner's surplus electricity in an area [owners
63	63	in areas] in which customer choice has been introduced[, the
64	64	distributed renewable generation owner] must sell the owner's
65	65	surplus electricity produced to the retail electric provider that
66	66	serves the retail electric customer's [distributed renewable
67	67	generation owner's] load. A distributed renewable generation owner
68	68	who chooses to sell the owner's surplus electricity in an area in
69	69	which customer choice has not been introduced must sell the owner's
70	70	surplus electricity to the electric utility that serves the retail
71	71	electric customer's load [at a value agreed to between the
72	72	distributed renewable generation owner and the provider that serves
73	73	the owner's load which may include, but is not limited to, an agreed
74	74	value based on the clearing price of energy at the time of day that
75	75	the electricity is made available to the grid or it may be a credit
76	76	applied to an account during a billing period that may be carried
77	77	over to subsequent billing periods until the credit has been
78	78	redeemed]. The independent organization identified in Section
79	79	39.151 shall develop procedures so that the amount of electricity
80	80	purchased from a distributed renewable generation owner under this
81	81	section is accounted for in settling the total load served by the
82	82	retail electric provider that serves that retail electric
83	83	customer's [owner's] load [by January 1, 2009]. A distributed
84	84	renewable generation owner requesting [net] metering services for
85	85	purposes of this section must have metering devices capable of
86	86	providing measurements consistent with the independent
87	87	organization's settlement requirements.
88	88	(k-1) In areas in which customer choice has been introduced,
89	89	a retail electric provider shall purchase surplus electricity at a
90	90	fair market value determined using a price that provides a periodic
91	91	proxy, using a period of a month or longer, for the load zone
92	92	real-time market clearing price, unless the provider chooses to use
93	93	a fair market value determined by a reasonable alternative method,
94	94	including the load zone real-time market clearing price at the time
95	95	of day the surplus electricity is made available to the grid or by
96	96	the simple average, during the period for which the surplus
97	97	electricity being purchased was generated, of the load zone
98	98	real-time market clearing price for energy at the time of day
99	99	specified in the ERCOT protocols for the applicable type of
100	100	distributed renewable generation for load reduction at locations
101	101	without interval data meters. A retail electric provider may
102	102	compensate a distributed renewable generation owner for purchased
103	103	surplus electricity at a value greater than the fair market value.
104	104	A distributed renewable generation owner may file a written
105	105	complaint with the commission for a violation of this subsection or
106	106	Subsection (l). This section does not apply to a retail electric
107	107	provider providing service under Section 39.106.
108	108	(l) A retail electric provider that purchases surplus
109	109	electricity from a distributed renewable generation owner under
110	110	Subsection (k-1) must compensate the distributed renewable
111	111	generation owner by making a payment not less frequently than once
112	112	each quarter or by applying a monetary credit to an account the
113	113	monetary credit balance of which may be carried forward until the
114	114	monetary credit has been redeemed. The retail electric provider
115	115	shall inform the distributed renewable generation owner of the
116	116	amount of surplus electricity purchased, measured in kilowatt
117	117	hours, and the price paid for the surplus electricity purchased.
118	118	(m) In areas in which customer choice has not been
119	119	introduced, an electric utility shall purchase surplus electricity
120	120	at a value that is at least equal to the avoided cost of the electric
121	121	utility as determined by commission rule. A distributed renewable
122	122	generation owner may file a written complaint with the commission
123	123	for a violation of this subsection or Subsection (n).
124	124	(n) An electric utility that purchases surplus electricity
125	125	from a distributed renewable generation owner under Subsection (m)
126	126	must compensate the distributed renewable generation owner by
127	127	making a payment not less frequently than once each quarter or by
128	128	applying a monetary credit to an account the monetary credit
129	129	balance of which may be carried forward until the monetary credit
130	130	has been redeemed. The electric utility shall inform the
131	131	distributed renewable generation owner of the amount of surplus
132	132	electricity purchased, measured in kilowatt hours, and the price
133	133	paid for the surplus electricity purchased.
134	134	(o) A distributed renewable generation owner is qualified
135	135	to be compensated for surplus electricity purchased under this
136	136	section only if:
137	137	(1) the distributed renewable generation is:
138	138	(A) rated to produce an amount of electricity
139	139	annually that is less than or equal to the amount of electricity the
140	140	retail electric customer for whom the distributed renewable
141	141	generation is installed is reasonably expected to consume annually;
142	142	and
143	143	(B) installed on the customer's side of the meter
144	144	for a residential retail electric customer or a retail electric
145	145	customer that is:
146	146	(i) a public school; or
147	147	(ii) the premises of a religious
148	148	organization if those premises are exempt from ad valorem taxation
149	149	under Section 11.20, Tax Code; and
150	150	(2) the generating capacity of the distributed
151	151	renewable generation does not exceed:
152	152	(A) 10 kilowatts for a residential retail
153	153	electric customer;
154	154	(B) 150 kilowatts for a retail electric customer
155	155	that is the premises of a religious organization if those premises
156	156	are exempt from ad valorem taxation under Section 11.20, Tax Code;
157	157	or
158	158	(C) 250 kilowatts for a retail electric customer
159	159	that is a public school.
160	160	(p) Notwithstanding Subsections (k-1) and (o), in areas in
161	161	which customer choice has been introduced, a distributed renewable
162	162	generation owner that does not meet the qualifications prescribed
163	163	by Subsection (o) may be paid or credited for the owner's surplus
164	164	electricity at a value agreed on by the owner and the retail
165	165	electric provider that serves the retail electric customer's load.
166	166	SECTION 5. Subchapter Z, Chapter 39, Utilities Code, is
167	167	amended by adding Sections 39.9161 and 39.9162 to read as follows:
168	168	Sec. 39.9161. DISTRIBUTED RENEWABLE GENERATION WITH
169	169	MUNICIPALLY OWNED UTILITIES. (a) In this section, "distributed
170	170	renewable generation," "distributed renewable generation owner,"
171	171	and "interconnection" have the meanings assigned by Section 39.916.
172	172	(b) A municipally owned utility shall:
173	173	(1) allow interconnection by distributed renewable
174	174	generation owners and payment for surplus electricity produced by
175	175	those owners; and
176	176	(2) provide the utility's customers access to
177	177	interconnection of distributed renewable generation and payment
178	178	for surplus electricity produced.
179	179	(c) The governing body of a municipally owned utility shall
180	180	provide oversight and adopt rates, rules, and procedures to allow
181	181	interconnection and provide payment for surplus electricity
182	182	consistent with the goals established by Section 39.916. This
183	183	subsection does not prevent the governing body of a municipally
184	184	owned utility from adopting rates, rules, and procedures for
185	185	interconnection and payment for surplus electricity that are more
186	186	favorable to a distributed renewable generation owner than those
187	187	established by any other law or rule of the commission.
188	188	(d) If a municipally owned utility implements customer
189	189	choice under Chapter 40, the commission:
190	190	(1) has jurisdiction over the municipally owned
191	191	utility's distributed renewable generation interconnection and
192	192	payment for surplus electricity; and
193	193	(2) by rule shall establish minimum standards and
194	194	procedures for interconnection and payment for surplus electricity
195	195	by the municipally owned utility.
196	196	(e) A municipally owned utility that had retail sales of
197	197	500,000 megawatt hours or more in 2012 shall:
198	198	(1) file the utility's interconnection and surplus
199	199	electricity rates, rules, and procedures with the State Energy
200	200	Conservation Office not later than January 1, 2015; and
201	201	(2) make timely updates to the utility's rates, rules,
202	202	and procedures filed under Subdivision (1).
203	203	(f) A municipally owned utility that has adopted rules and
204	204	procedures related to interconnection and payment for surplus
205	205	electricity shall make available, on a publicly accessible Internet
206	206	website or at the customary location for publicly posted notices:
207	207	(1) information on the purchase price offered per
208	208	kilowatt hour for surplus electricity produced by distributed
209	209	renewable generation; and
210	210	(2) information instructing customers with
211	211	distributed renewable generation how to request and obtain the
212	212	purchase rates offered.
213	213	(g) The governing body of a municipally owned utility that
214	214	had retail sales of less than 500,000 megawatt hours in 2012 shall
215	215	provide oversight and adopt rates, rules, and procedures related to
216	216	interconnection and payment for surplus electricity of distributed
217	217	renewable generation systems with a generating capacity considered
218	218	appropriate by the municipally owned utility on or before the 120th
219	219	day after the date the governing body receives a bona fide request
220	220	for interconnection.
221	221	Sec. 39.9162. DISTRIBUTED RENEWABLE GENERATION WITH
222	222	ELECTRIC COOPERATIVES. (a) In this section, "distributed
223	223	renewable generation," "distributed renewable generation owner,"
224	224	and "interconnection" have the meanings assigned by Section 39.916.
225	225	(b) An electric cooperative shall:
226	226	(1) allow interconnection by distributed renewable
227	227	generation owners and payment for surplus electricity produced by
228	228	those owners; and
229	229	(2) provide its members access to interconnection of
230	230	distributed renewable generation and payment for surplus
231	231	electricity produced.
232	232	(c) An electric cooperative shall allow interconnection if:
233	233	(1) the distributed renewable generation to be
234	234	interconnected has a five-year warranty against breakdown or undue
235	235	degradation;
236	236	(2) the rated capacity of the distributed renewable
237	237	generation does not exceed the electric cooperative's service
238	238	capacity; and
239	239	(3) the distributed renewable generation meets other
240	240	technical requirements for interconnection that are consistent
241	241	with commission rules.
242	242	(d) The board of directors of an electric cooperative shall
243	243	provide oversight and adopt rates, rules, and procedures to allow
244	244	interconnection and provide payment for surplus electricity
245	245	consistent with the goals established by Section 39.916. This
246	246	subsection does not prevent the board of directors of an electric
247	247	cooperative from adopting rates, rules, and procedures for
248	248	interconnection and payment for surplus electricity that are more
249	249	favorable to a distributed renewable generation owner than those
250	250	established by any other law or rule of the commission.
251	251	(e) A member may request interconnection by filing an
252	252	application for interconnection with the electric cooperative. An
253	253	electric cooperative's procedures for the submission and
254	254	processing of a member's application for interconnection must be
255	255	consistent with rules adopted by the commission regarding
256	256	interconnection.
257	257	(f) An electric cooperative may not require a distributed
258	258	renewable generation owner whose distributed renewable generation
259	259	meets the standards established under Subsection (c) to purchase an
260	260	amount, type, or classification of liability insurance the
261	261	distributed renewable generation owner would not have in the
262	262	absence of the distributed renewable generation.
263	263	(g) An electric cooperative shall compensate the
264	264	distributed renewable generation owner for surplus electricity at a
265	265	value that is at least equal to the avoided cost of the cooperative.
266	266	The electric cooperative may determine the cooperative's avoided
267	267	cost as either:
268	268	(1) the sum of the average wholesale fuel and energy
269	269	costs, expressed in cents per kilowatt hour, on the wholesale power
270	270	bill for the applicable billing period; or
271	271	(2) the avoided cost of the wholesale power supplier
272	272	as determined in accordance with the rules and regulations of the
273	273	Federal Energy Regulatory Commission if the electric cooperative
274	274	purchases all of its power from a wholesale power supplier
275	275	regulated by the Federal Energy Regulatory Commission.
276	276	(h) If an electric cooperative implements customer choice
277	277	under Chapter 41, the commission:
278	278	(1) has jurisdiction over the electric cooperative's
279	279	distributed renewable generation interconnection and payment for
280	280	surplus electricity; and
281	281	(2) by rule shall establish minimum standards and
282	282	procedures for interconnection and payment for surplus electricity
283	283	by the electric cooperative.
284	284	(i) An electric cooperative that had retail sales of 500,000
285	285	megawatt hours or more in 2012 shall file the cooperative's
286	286	interconnection and surplus electricity rates, rules, and
287	287	procedures with the State Energy Conservation Office not later than
288	288	January 1, 2015, and shall make timely updates to the cooperative's
289	289	filed rates, rules, and procedures.
290	290	(j) An electric cooperative that has adopted rules and
291	291	procedures related to interconnection and payment for surplus
292	292	electricity shall make available, on the cooperative's Internet
293	293	website or at the customary location for the cooperative's posted
294	294	notices:
295	295	(1) information on the purchase price offered per
296	296	kilowatt hour for surplus electricity produced by distributed
297	297	renewable generation; and
298	298	(2) information instructing members with distributed
299	299	renewable generation how to request and obtain the purchase rates
300	300	offered.
301	301	(k) The board of directors of an electric cooperative that
302	302	had retail sales of less than 500,000 megawatt hours in 2012 shall
303	303	provide oversight and adopt rates, rules, and procedures related to
304	304	interconnection of distributed renewable generation and payment
305	305	for surplus electricity on or before the 120th day after the date
306	306	the board of directors receives a bona fide request for
307	307	interconnection.
308	308	SECTION 6. Subchapter Z, Chapter 39, Utilities Code, is
309	309	amended by adding Section 39.926 to read as follows:
310	310	Sec. 39.926. INFORMATION ON INTERNET REGARDING PURCHASE OF
311	311	SURPLUS ELECTRICITY PRODUCED BY DISTRIBUTED RENEWABLE GENERATION.
312	312	The commission shall provide for access to easily comparable
313	313	information regarding retail electric providers' offers to
314	314	residential distributed renewable generation owners for their
315	315	surplus electricity, including information regarding their
316	316	contract terms, on an Internet website maintained by the
317	317	commission.
318	318	SECTION 7. Subsection (h), Section 39.916, Utilities Code,
319	319	is repealed.
320	320	SECTION 8. This Act takes effect January 1, 2014.
321	321	* * * * *