Texas 2023 - 88th Regular

Texas House Bill HB2793 Compare Versions

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1	1	88R6200 DIO-F
2	2	By: Anchía H.B. No. 2793
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the interconnection and integration of distributed
8	8	energy resources.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 31.002, Utilities Code, is amended by
11	11	adding Subdivisions (2-a) and (4-c) and amending Subdivision (10)
12	12	to read as follows:
13	13	(2-a) "Aggregated distributed energy resource" means a
14	14	group of distributed energy resources joined together to be
15	15	operated as a single distributed energy resource, where each
16	16	individual resource in the aggregation produces not more than one
17	17	megawatt of electricity, for the purpose of providing electric
18	18	energy or ancillary services in the wholesale market.
19	19	(4-c) "Distributed energy resource" means a source of
20	20	not more than 10 megawatts of electricity connected at a voltage
21	21	less than 60 kilovolts, including electric energy storage,
22	22	distributed generation, distributed natural gas generation, or
23	23	electric vehicles that provide electricity onto the distribution
24	24	system and are located on the customer's side of the point of common
25	25	coupling meter point. The term does not include a facility that
26	26	provides temporary emergency electric energy under Section 39.918.
27	27	(10) "Power generation company" means a person[,
28	28	including a person who owns or operates a distributed natural gas
29	29	generation facility,] that:
30	30	(A) generates electricity that is intended to be
31	31	sold at wholesale, including the owner or operator of electric
32	32	energy storage equipment or facilities to which Subchapter E,
33	33	Chapter 35, applies;
34	34	(B) does not own a transmission or distribution
35	35	facility in this state other than an essential interconnecting
36	36	facility, a facility not dedicated to public use, or a facility
37	37	otherwise excluded from the definition of "electric utility" under
38	38	this section; and
39	39	(C) does not have a certificated service area,
40	40	although its affiliated electric utility or transmission and
41	41	distribution utility may have a certificated service area.
42	42	SECTION 2. Subchapter H, Chapter 39, Utilities Code, is
43	43	amended by adding Section 39.3515 to read as follows:
44	44	Sec. 39.3515. REGISTRATION OF DISTRIBUTED ENERGY
45	45	RESOURCES. (a) An owner or operator of a distributed energy
46	46	resource may provide energy or ancillary services in the wholesale
47	47	market in the ERCOT power region through generating electricity and
48	48	providing that electricity onto a distribution system only if:
49	49	(1) the owner or operator is registered with the
50	50	commission as a power generation company under Section 39.351 and
51	51	authorized by the independent organization certified under Section
52	52	39.151 for the ERCOT power region; or
53	53	(2) the distributed energy resource is part of an
54	54	aggregated distributed energy resource and:
55	55	(A) the aggregated distributed energy resource
56	56	is registered in its own corporate capacity as a power generation
57	57	company with the commission under Section 39.351, the independent
58	58	organization certified under Section 39.151 for the ERCOT power
59	59	region, and the interconnecting transmission and distribution
60	60	utility; or
61	61	(B) the owner is not registered separately as a
62	62	power generation company, but the distributed energy resource is
63	63	operated by, and included in the registration of, a power
64	64	generation company that is registered with the commission under
65	65	Section 39.351, the independent organization certified under
66	66	Section 39.151 for the ERCOT power region, and the interconnecting
67	67	transmission and distribution utility.
68	68	(b) A retail customer may participate as part of an
69	69	aggregated distributed energy resource that is registered with the
70	70	independent organization certified under Section 39.151 for the
71	71	ERCOT power region and the interconnecting transmission and
72	72	distribution utility without being individually registered with
73	73	the commission as a power generation company under Section 39.351.
74	74	(c) The commission may establish simplified filing
75	75	requirements for load-serving entities to facilitate the
76	76	registration of aggregated distributed energy resources. The
77	77	filing requirements must require the registrant to disclose the
78	78	name of the power generation company that operates the aggregated
79	79	distributed energy resource.
80	80	(d) A facility described by Section 39.914 or 39.916 is not
81	81	considered to be a distributed energy resource unless:
82	82	(1) electricity from the facility provides energy or
83	83	ancillary services in the wholesale market in the ERCOT power
84	84	region in a manner described by this section; or
85	85	(2) at the time the facility is installed, the
86	86	estimated annual amount of electricity to be produced by the
87	87	facility is more than the retail electric customer's estimated
88	88	annual electricity consumption.
89	89	(e) The commission by rule shall:
90	90	(1) authorize the registrations described by
91	91	Subsection (a); and
92	92	(2) adopt procedures for the creation of aggregated
93	93	distributed energy resources.
94	94	SECTION 3. Chapter 39, Utilities Code, is amended by adding
95	95	Subchapter O to read as follows:
96	96	SUBCHAPTER O. INTERCONNECTION OF DISTRIBUTED ENERGY RESOURCES
97	97	Sec. 39.701. INTERCONNECTION. (a) Except as otherwise
98	98	provided by this title, the requirements of this section apply to a
99	99	distributed energy resource interconnected to a transmission and
100	100	distribution utility's distribution system in the ERCOT power
101	101	region.
102	102	(b) A transmission and distribution utility may allow
103	103	interconnection only if:
104	104	(1) the distributed energy resource meets applicable
105	105	safety, technical, and operational performance and cybersecurity
106	106	standards; and
107	107	(2) the owner or operator of the distributed energy
108	108	resource meets any applicable qualifications and testing
109	109	requirements of the independent organization certified under
110	110	Section 39.151 for the ERCOT power region.
111	111	(c) An interconnecting transmission and distribution
112	112	utility is not required to provide an owner or operator of a
113	113	distributed energy resource access to the utility's meter
114	114	equipment.
115	115	Sec. 39.702. INTEGRATION AND COST RECOVERY. (a) The
116	116	commission by rule shall establish for the ERCOT power region:
117	117	(1) requirements for the dispatchability,
118	118	reliability, and other characteristics of each type or
119	119	classification of distributed energy resource;
120	120	(2) appropriate disclosure requirements and other
121	121	customer protections for customers who purchase or lease
122	122	distributed energy resources or purchase electric energy or
123	123	ancillary services from distributed energy resources;
124	124	(3) information an owner or operator of a distributed
125	125	energy resource must provide to the interconnecting transmission
126	126	and distribution utility to ensure the resource will not adversely
127	127	affect the transmission or distribution system;
128	128	(4) interconnection guidelines that address:
129	129	(A) the determination of whether a given
130	130	interconnection or combination of interconnections would exceed a
131	131	transmission and distribution utility's system capacity in a
132	132	particular location;
133	133	(B) considerations for feeder locations related
134	134	to distributed energy resources;
135	135	(C) considerations of the size or capacity of a
136	136	distributed energy resource;
137	137	(D) the assessment of potential adverse impacts
138	138	to other customers in the area of the distributed energy resource;
139	139	(E) means of recognizing and accounting for the
140	140	fact that a distributed energy resource may be unavailable during a
141	141	firm load shedding event or a power outage of the distribution
142	142	system; and
143	143	(F) other operating parameters necessary for the
144	144	transmission and distribution utility's reliable operation of its
145	145	transmission and distribution system;
146	146	(5) a methodology for the appropriate allocation and
147	147	recovery of the transmission and distribution utility's costs to
148	148	interconnect a distributed energy resource; and
149	149	(6) requirements for the independent organization
150	150	certified under Section 39.151 for the ERCOT power region to report
151	151	to the commission periodically:
152	152	(A) the categories and generation levels of
153	153	distributed energy resources allowed to participate in the ERCOT
154	154	wholesale market;
155	155	(B) the categories and megawatt levels of
156	156	aggregated distributed energy resources allowed to participate in
157	157	the ERCOT wholesale market;
158	158	(C) accreditation of distributed energy
159	159	resources allowed to participate in the ERCOT wholesale market;
160	160	(D) performance metrics for distributed energy
161	161	resources allowed to participate in the ERCOT wholesale market; and
162	162	(E) other information the commission may
163	163	require.
164	164	(b) The commission shall authorize a transmission and
165	165	distribution utility to:
166	166	(1) defer for recovery in a later ratemaking
167	167	proceeding the incremental operations and maintenance expenses, or
168	168	other expenses, and the return, not otherwise recovered in a rate
169	169	proceeding, associated with the installation, modification,
170	170	upgrade, or maintenance of its transmission or distribution
171	171	facilities required by an interconnection under Sections 39.701(b)
172	172	and (c); and
173	173	(2) request recovery of the costs associated with an
174	174	interconnection under Sections 39.701(b) and (c), including any
175	175	deferred expenses, through a proceeding under Section 35.004 or
176	176	36.210 or in another ratemaking proceeding regardless of whether
177	177	the utility first requested recovery in a base-rate proceeding.
178	178	(c) Facilities required by an interconnection under
179	179	Sections 39.701(b) and (c) are considered used and useful in
180	180	providing service to the public and are prudent and includable in
181	181	the rate base, regardless of the extent of the actual use of the
182	182	facilities.
183	183	(d) This subchapter does not:
184	184	(1) require or authorize a distribution utility to
185	185	procure distributed energy resource services to enable the
186	186	operation of the distribution utility system;
187	187	(2) require a distribution utility to disclose to any
188	188	third party the utility's system planning information, studies,
189	189	models, critical infrastructure information, or other confidential
190	190	information; or
191	191	(3) diminish a distribution utility's rights or
192	192	obligations to own or operate its distribution system and provide
193	193	electric delivery service to retail customers in the utility's
194	194	certificated service area.
195	195	Sec. 39.703. LIABILITY. An interconnecting transmission
196	196	and distribution utility or retail electric provider providing
197	197	service to a distributed energy resource to which this subchapter
198	198	applies is not liable for:
199	199	(1) a violation of reliability or service metrics
200	200	caused by distributed energy resource operations;
201	201	(2) damage, injury, or loss caused by distributed
202	202	energy resource operations; or
203	203	(3) a distributed energy resource's inability or
204	204	failure to provide services or a penalty for such inability or
205	205	failure.
206	206	SECTION 4. (a) This section takes effect only if the Act of
207	207	the 88th Legislature, Regular Session, 2023, relating to
208	208	nonsubstantive additions to and corrections in enacted codes
209	209	becomes law.
210	210	(b) Subchapter Z, Chapter 39, Utilities Code, is amended by
211	211	adding Section 39.9166 to read as follows:
212	212	Sec. 39.9166. DISTRIBUTED ENERGY RESOURCES. (a) A
213	213	customer who purchases or leases a distributed energy resource or
214	214	enters into a power purchase agreement for a distributed energy
215	215	resource in the ERCOT power region is entitled to the information
216	216	and disclosures required under Chapter 115, Business & Commerce
217	217	Code, and is entitled to protection from fraudulent, unfair,
218	218	misleading, or deceptive practices.
219	219	(b) An owner or operator of a distributed energy resource
220	220	may provide energy or ancillary services in the wholesale market in
221	221	the ERCOT power region through generating electricity and providing
222	222	that electricity onto a distribution system in an area in which
223	223	customer choice has been introduced in the manner provided by this
224	224	section.
225	225	(c) A person who owns or operates a distributed energy
226	226	resource in an area in which customer choice has been introduced and
227	227	is part of an aggregated distributed energy resource, or has not
228	228	individually registered with the commission as its own power
229	229	generation company, must sell the surplus electricity or ancillary
230	230	services that are produced by the distributed energy resource and
231	231	that are not consumed by the owner's premise to the retail electric
232	232	provider that serves the premise's load at a value agreed to between
233	233	the distributed energy resource owner and the retail electric
234	234	provider that serves the premise's load. The value may be an agreed
235	235	value based on the clearing price of energy or ancillary service at
236	236	the time of day that the electricity is made available to the grid.
237	237	(d) A retail electric provider may direct the offering or
238	238	dispatch of aggregated distributed energy resources for which the
239	239	retail electric provider facilitated aggregation.
240	240	(e) The independent organization certified under Section
241	241	39.151 for the ERCOT power region shall adopt procedures to ensure
242	242	that the amount of electricity purchased from a distributed energy
243	243	resource owner under this section is accounted for when settling
244	244	the total load served by the retail electric provider that serves
245	245	that premise owner's load.
246	246	(f) A distributed energy resource owner that requests net
247	247	metering services for purposes of this section must have metering
248	248	devices capable of providing measurements consistent with the
249	249	independent organization's settlement requirements.
250	250	(g) A transmission and distribution utility may provide to
251	251	customers educational information regarding the technical
252	252	requirements for the interconnection of distributed energy
253	253	resources to the distribution system. The provision of information
254	254	under this subsection is not considered a competitive energy
255	255	service.
256	256	(h) This section does not apply to a purchase or agreement
257	257	entered into under Section 39.914 or 39.916.
258	258	SECTION 5. (a) This section takes effect only if the Act of
259	259	the 88th Legislature, Regular Session, 2023, relating to
260	260	nonsubstantive additions to and corrections in enacted codes does
261	261	not become law.
262	262	(b) Subchapter Z, Chapter 39, Utilities Code, is amended by
263	263	adding Section 39.9166 to read as follows:
264	264	Sec. 39.9166. DISTRIBUTED ENERGY RESOURCES. (a) A
265	265	customer who purchases or leases a distributed energy resource or
266	266	enters into a power purchase agreement for a distributed energy
267	267	resource in the ERCOT power region is entitled to the information
268	268	and disclosures required under Chapter 113, Business & Commerce
269	269	Code, as added by Chapter 561 (S.B. 398), Acts of the 87th
270	270	Legislature, Regular Session, 2021, and is entitled to protection
271	271	from fraudulent, unfair, misleading, or deceptive practices.
272	272	(b) An owner or operator of a distributed energy resource
273	273	may provide energy or ancillary services in the wholesale market in
274	274	the ERCOT power region through generating electricity and providing
275	275	that electricity onto a distribution system in an area in which
276	276	customer choice has been introduced in the manner provided by this
277	277	section.
278	278	(c) A person who owns or operates a distributed energy
279	279	resource in an area in which customer choice has been introduced and
280	280	is part of an aggregated distributed energy resource, or has not
281	281	individually registered with the commission as its own power
282	282	generation company, must sell the surplus electricity or ancillary
283	283	services that are produced by the distributed energy resource and
284	284	that are not consumed by the owner's premise to the retail electric
285	285	provider that serves the premise's load at a value agreed to between
286	286	the distributed energy resource owner and the retail electric
287	287	provider that serves the premise's load. The value may be an agreed
288	288	value based on the clearing price of energy or ancillary service at
289	289	the time of day that the electricity is made available to the grid.
290	290	(d) A retail electric provider may direct the offering or
291	291	dispatch of aggregated distributed energy resources for which the
292	292	retail electric provider facilitated aggregation.
293	293	(e) The independent organization certified under Section
294	294	39.151 for the ERCOT power region shall adopt procedures to ensure
295	295	that the amount of electricity purchased from a distributed energy
296	296	resource owner under this section is accounted for when settling
297	297	the total load served by the retail electric provider that serves
298	298	that premise owner's load.
299	299	(f) A distributed energy resource owner that requests net
300	300	metering services for purposes of this section must have metering
301	301	devices capable of providing measurements consistent with the
302	302	independent organization's settlement requirements.
303	303	(g) A transmission and distribution utility may provide to
304	304	customers educational information regarding the technical
305	305	requirements for the interconnection of distributed energy
306	306	resources to the distribution system. The provision of information
307	307	under this subsection is not considered a competitive energy
308	308	service.
309	309	(h) This section does not apply to a purchase or agreement
310	310	entered into under Section 39.914 or 39.916.
311	311	SECTION 6. As soon as practicable after the effective date
312	312	of this Act, the Public Utility Commission of Texas shall adopt
313	313	rules necessary to implement the changes in law made by this Act.
314	314	SECTION 7. This Act takes effect immediately if it receives
315	315	a vote of two-thirds of all the members elected to each house, as
316	316	provided by Section 39, Article III, Texas Constitution. If this
317	317	Act does not receive the vote necessary for immediate effect, this
318	318	Act takes effect September 1, 2023.