Texas 2023 - 88th Regular

Texas House Bill HB4287 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R19092 CXP-F
2	2	By: Metcalf, Cunningham, Manuel, Bailes, H.B. No. 4287
3	3	Ashby, et al.
4	4	Substitute the following for H.B. No. 4287:
5	5	By: Slawson C.S.H.B. No. 4287
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the use of customer-sited distributed generation
11	11	facilities owned by certain non-ERCOT electric utilities.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter E, Chapter 36, Utilities Code, is
14	14	amended by adding Section 36.215 to read as follows:
15	15	Sec. 36.215. RECOVERY OF INVESTMENT IN DISTRIBUTED
16	16	GENERATION AND RATES FOR BACKUP ELECTRIC SERVICE FOR CERTAIN
17	17	NON-ERCOT UTILITIES. (a) In this section:
18	18	(1) "Customer-sited distributed generation facility"
19	19	means a dispatchable generation facility that is installed on the
20	20	electric utility's side of the retail meter and owned and operated
21	21	by the electric utility:
22	22	(A) with a nameplate capacity of not more than 10
23	23	megawatts;
24	24	(B) that is capable of generating and providing
25	25	backup electric service to a customer during a power grid outage;
26	26	and
27	27	(C) sited at or adjacent to the customer's
28	28	premises.
29	29	(2) "Host customer" means a customer receiving backup
30	30	electric service under this section.
31	31	(b) This section applies only to an electric utility that
32	32	operates solely outside of ERCOT in areas of this state included in
33	33	the Southeastern Electric Reliability Council.
34	34	(c) An electric utility may provide backup electric service
35	35	to a nonresidential retail customer through a customer-sited
36	36	distributed generation facility.
37	37	(d) The commission, on the petition of an electric utility,
38	38	shall establish just and reasonable rates for backup electric
39	39	service supplied using a customer-sited distributed generation
40	40	facility, consistent with this chapter, provided that costs are
41	41	allocated as follows:
42	42	(1) if the facility is capable of directly supplying
43	43	energy to the distribution system or of disconnecting the host
44	44	customer from the distribution system when not being used to supply
45	45	backup electric service to the host customer and thereby reducing
46	46	system load, the commission shall allocate the cost of owning and
47	47	operating the facility between the host customer and the electric
48	48	utility's broader customer base, including an allocation of any
49	49	margins from energy sales attributable to the facility to the host
50	50	customer in reasonable proportion to the allocation of nonfuel
51	51	costs as provided by Subdivision (2); and
52	52	(2) the allocation of nonfuel costs to the host
53	53	customer must be based on the cost to purchase, install,
54	54	interconnect, own, operate, and maintain the facility that is above
55	55	the electric utility's levelized avoided cost to install, own,
56	56	operate, and maintain a single-cycle combustion turbine, on a per
57	57	kilowatt basis, grossed up for avoided line losses based on the
58	58	utility's transmission and distribution line loss factors last
59	59	approved by the commission.
60	60	(e) In a rate proceeding in which an electric utility seeks
61	61	to recover the full cost of the utility's investment in a
62	62	customer-sited distributed generation facility that is
63	63	interconnected to the utility's distribution system, the cost of
64	64	the facility and backup electric service revenues must be allocated
65	65	among customer classes on the same basis used to allocate the
66	66	utility's distribution-level investments.
67	67	SECTION 2. This Act takes effect immediately if it receives
68	68	a vote of two-thirds of all the members elected to each house, as
69	69	provided by Section 39, Article III, Texas Constitution. If this
70	70	Act does not receive the vote necessary for immediate effect, this
71	71	Act takes effect September 1, 2023.