Bill Text: TX HB225 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to distributed generation of electric power.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-02-14 - Referred to State Affairs [HB225 Detail]
Download: Texas-2011-HB225-Introduced.html
82R914 ALL-F | ||
By: Strama | H.B. No. 225 |
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relating to distributed generation of electric power. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 31.002, Utilities Code, is amended by | ||
adding Subdivision (4-a) and amending Subdivision (10) to read as | ||
follows: | ||
(4-a) "Distributed natural gas generation facility" | ||
means a facility installed on the customer's side of the meter that | ||
uses natural gas to generate not more than 2,000 kilowatts of | ||
electricity. | ||
(10) "Power generation company" means a person, | ||
including a person who owns or operates a distributed natural gas | ||
generation facility, that: | ||
(A) generates electricity that is intended to be | ||
sold at wholesale; | ||
(B) does not own a transmission or distribution | ||
facility in this state other than an essential interconnecting | ||
facility, a facility not dedicated to public use, or a facility | ||
otherwise excluded from the definition of "electric utility" under | ||
this section; and | ||
(C) does not have a certificated service area, | ||
although its affiliated electric utility or transmission and | ||
distribution utility may have a certificated service area. | ||
SECTION 2. The heading to Subchapter B, Chapter 35, | ||
Utilities Code, is amended to read as follows: | ||
SUBCHAPTER B. EXEMPT WHOLESALE GENERATORS, DISTRIBUTED NATURAL GAS | ||
GENERATION FACILITIES, AND POWER MARKETERS | ||
SECTION 3. Subchapter B, Chapter 35, Utilities Code, is | ||
amended by adding Section 35.036 to read as follows: | ||
Sec. 35.036. DISTRIBUTED NATURAL GAS GENERATION | ||
FACILITIES. (a) A person who owns or operates a distributed | ||
natural gas generation facility may sell electric power generated | ||
by the facility. The electric utility, electric cooperative, or | ||
retail electric provider that provides retail electricity service | ||
to the facility may purchase electric power tendered to it by the | ||
owner or operator of the facility at a value agreed to by the | ||
electric utility, electric cooperative, or retail electric | ||
provider and the owner or operator of the facility. The value of the | ||
electric power may be based wholly or partly on the clearing price | ||
of energy at the time of day and at the location at which the | ||
electric power is made available to the electric grid. | ||
(b) At the request of the owner or operator of the | ||
distributed natural gas generation facility, the electric utility | ||
or electric cooperative shall allow the owner or operator of the | ||
facility to use transmission and distribution facilities to | ||
transmit the electric power to another entity that is acceptable to | ||
the owner or operator in accordance with commission rules or a | ||
tariff approved by the Federal Energy Regulatory Commission. | ||
(c) Subject to Subsections (e) and (f), if the owner or | ||
operator of a distributed natural gas generation facility requests | ||
to be interconnected to an electric utility or electric cooperative | ||
that does not have a transmission tariff approved by the Federal | ||
Energy Regulatory Commission, the electric utility or electric | ||
cooperative may recover from the owner or operator of the facility | ||
the reasonable costs of interconnecting the facility with the | ||
electric utility or electric cooperative that are necessary for and | ||
directly attributable to the interconnection of the facility. | ||
(d) Subject to Subsections (e) and (f), an electric utility | ||
or electric cooperative may recover from the owner or operator of a | ||
distributed natural gas generation facility the reasonable costs of | ||
electric facility upgrades and improvements if: | ||
(1) the rated capacity of the distributed natural gas | ||
generation facility is greater than the rated capacity of the | ||
electric utility or electric cooperative; and | ||
(2) the costs are necessary for and directly | ||
attributable to accommodating the distributed natural gas | ||
generation facility's capacity. | ||
(e) An electric utility or electric cooperative may recover | ||
costs under Subsection (c) or (d) only if: | ||
(1) the electric utility or electric cooperative | ||
provides a written good-faith cost estimate to the owner or | ||
operator of the distributed natural gas generation facility; and | ||
(2) the owner or operator of the distributed natural | ||
gas generation facility agrees in writing to pay the reasonable and | ||
necessary costs of interconnection or capacity accommodation | ||
requested by the owner or operator and described in the estimate | ||
before the electric utility or electric cooperative incurs the | ||
costs. | ||
(f) If an electric utility or electric cooperative seeks to | ||
recover from the owner or operator of a distributed natural gas | ||
generation facility an amount that exceeds the amount in the | ||
estimate provided under Subsection (e) by more than five percent, | ||
the commission shall resolve the dispute at the request of the owner | ||
or operator of the facility. | ||
(g) A distributed natural gas generation facility must | ||
comply with emissions limitations established by the Texas | ||
Commission on Environmental Quality for a standard emissions permit | ||
for an electric generation facility unit installed after January 1, | ||
1995. | ||
SECTION 4. Section 39.351(c), Utilities Code, is amended to | ||
read as follows: | ||
(c) The commission may establish simplified filing | ||
requirements for distributed natural gas generation facilities. [ |
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SECTION 5. This Act takes effect September 1, 2011. |