By: Deshotel H.B. No. 3624 A BILL TO BE ENTITLED AN ACT Relating to electricity customer rights to distributed energy storage. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 35.152, Utilities Code, is amended by adding Subsection (e) to read as follows: Sec. 35.152. (a) Electric energy storage equipment or facilities that are intended to be used to sell energy or ancillary services at wholesale are generation assets. (b) The owner or operator of electric energy storage equipment or facilities that are generation assets under Subsection (a) is a power generation company and is required to register under Section 39.351(a). The owner or operator of the equipment or facilities is entitled to: (1) interconnect the equipment or facilities; (2) obtain transmission service for the equipment or facilities; and (3) use the equipment or facilities to sell electricity or ancillary services at wholesale in a manner consistent with the provisions of this title and commission rules applicable to a power generation company or an exempt wholesale generator. (c) Notwithstanding Subsection (a), this section does not affect a determination made by the commission in a final order issued before December 31, 2010. (d) Subsection (b) does not require a municipally owned utility or an electric cooperative that owns or operates electric energy storage equipment or facilities described by Subsection (a) to register as a power generation company under Section 39.351(a). (e) The owner or operator of distributed renewable generation and distributed energy storage equipment or facilities, as defined by Section 39.916, that are installed on the retail electric customer's side of the meter are entitled to use the equipment or facilities to sell electricity or ancillary services at wholesale in manner consistent with the provisions of this title. SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is amended by adding Section 39.918 to read as follows: Sec. 39.918. CUSTOMER RIGHT TO DISTRIBUTED ENERGY STORAGE. (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) "Distributed energy storage" means electric energy storage with a capacity of not more than 2,000 kilowatts that is installed on a retail electric customer's side of the meter. (3) "Owner" means: (A) an owner of distributed renewable generation; (B) an owner of distributed storage; (C) an owner of distributed renewable generation and distributed storage; or (D) a retail electric customer on whose side of the meter distributed renewable generation and/or distributed energy storage is installed and operated, regardless of whether the customer takes ownership of the distributed renewable generation; or (E) a person who by contract is assigned ownership rights to energy produced from distributed renewable generation and/or distributed storage located at the premises of the customer on the customer's side of the meter. (b) An electric utility shall allow an owner to the use of owner-supplied, UL-certified devices designed to isolate and disconnect household loads on the retail electric customer's side of the meter. SECTION 3. This Act takes effect September 1, 2021.