Bill Text: TX HB2793 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the interconnection and integration of distributed energy resources.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2023-03-13 - Referred to State Affairs [HB2793 Detail]
Download: Texas-2023-HB2793-Introduced.html
88R6200 DIO-F | ||
By: Anchía | H.B. No. 2793 |
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relating to the interconnection and integration of distributed | ||
energy resources. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 31.002, Utilities Code, is amended by | ||
adding Subdivisions (2-a) and (4-c) and amending Subdivision (10) | ||
to read as follows: | ||
(2-a) "Aggregated distributed energy resource" means a | ||
group of distributed energy resources joined together to be | ||
operated as a single distributed energy resource, where each | ||
individual resource in the aggregation produces not more than one | ||
megawatt of electricity, for the purpose of providing electric | ||
energy or ancillary services in the wholesale market. | ||
(4-c) "Distributed energy resource" means a source of | ||
not more than 10 megawatts of electricity connected at a voltage | ||
less than 60 kilovolts, including electric energy storage, | ||
distributed generation, distributed natural gas generation, or | ||
electric vehicles that provide electricity onto the distribution | ||
system and are located on the customer's side of the point of common | ||
coupling meter point. The term does not include a facility that | ||
provides temporary emergency electric energy under Section 39.918. | ||
(10) "Power generation company" means a person[ |
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(A) generates electricity that is intended to be | ||
sold at wholesale, including the owner or operator of electric | ||
energy storage equipment or facilities to which Subchapter E, | ||
Chapter 35, applies; | ||
(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. Subchapter H, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.3515 to read as follows: | ||
Sec. 39.3515. REGISTRATION OF DISTRIBUTED ENERGY | ||
RESOURCES. (a) An owner or operator of a distributed energy | ||
resource may provide energy or ancillary services in the wholesale | ||
market in the ERCOT power region through generating electricity and | ||
providing that electricity onto a distribution system only if: | ||
(1) the owner or operator is registered with the | ||
commission as a power generation company under Section 39.351 and | ||
authorized by the independent organization certified under Section | ||
39.151 for the ERCOT power region; or | ||
(2) the distributed energy resource is part of an | ||
aggregated distributed energy resource and: | ||
(A) the aggregated distributed energy resource | ||
is registered in its own corporate capacity as a power generation | ||
company with the commission under Section 39.351, the independent | ||
organization certified under Section 39.151 for the ERCOT power | ||
region, and the interconnecting transmission and distribution | ||
utility; or | ||
(B) the owner is not registered separately as a | ||
power generation company, but the distributed energy resource is | ||
operated by, and included in the registration of, a power | ||
generation company that is registered with the commission under | ||
Section 39.351, the independent organization certified under | ||
Section 39.151 for the ERCOT power region, and the interconnecting | ||
transmission and distribution utility. | ||
(b) A retail customer may participate as part of an | ||
aggregated distributed energy resource that is registered with the | ||
independent organization certified under Section 39.151 for the | ||
ERCOT power region and the interconnecting transmission and | ||
distribution utility without being individually registered with | ||
the commission as a power generation company under Section 39.351. | ||
(c) The commission may establish simplified filing | ||
requirements for load-serving entities to facilitate the | ||
registration of aggregated distributed energy resources. The | ||
filing requirements must require the registrant to disclose the | ||
name of the power generation company that operates the aggregated | ||
distributed energy resource. | ||
(d) A facility described by Section 39.914 or 39.916 is not | ||
considered to be a distributed energy resource unless: | ||
(1) electricity from the facility provides energy or | ||
ancillary services in the wholesale market in the ERCOT power | ||
region in a manner described by this section; or | ||
(2) at the time the facility is installed, the | ||
estimated annual amount of electricity to be produced by the | ||
facility is more than the retail electric customer's estimated | ||
annual electricity consumption. | ||
(e) The commission by rule shall: | ||
(1) authorize the registrations described by | ||
Subsection (a); and | ||
(2) adopt procedures for the creation of aggregated | ||
distributed energy resources. | ||
SECTION 3. Chapter 39, Utilities Code, is amended by adding | ||
Subchapter O to read as follows: | ||
SUBCHAPTER O. INTERCONNECTION OF DISTRIBUTED ENERGY RESOURCES | ||
Sec. 39.701. INTERCONNECTION. (a) Except as otherwise | ||
provided by this title, the requirements of this section apply to a | ||
distributed energy resource interconnected to a transmission and | ||
distribution utility's distribution system in the ERCOT power | ||
region. | ||
(b) A transmission and distribution utility may allow | ||
interconnection only if: | ||
(1) the distributed energy resource meets applicable | ||
safety, technical, and operational performance and cybersecurity | ||
standards; and | ||
(2) the owner or operator of the distributed energy | ||
resource meets any applicable qualifications and testing | ||
requirements of the independent organization certified under | ||
Section 39.151 for the ERCOT power region. | ||
(c) An interconnecting transmission and distribution | ||
utility is not required to provide an owner or operator of a | ||
distributed energy resource access to the utility's meter | ||
equipment. | ||
Sec. 39.702. INTEGRATION AND COST RECOVERY. (a) The | ||
commission by rule shall establish for the ERCOT power region: | ||
(1) requirements for the dispatchability, | ||
reliability, and other characteristics of each type or | ||
classification of distributed energy resource; | ||
(2) appropriate disclosure requirements and other | ||
customer protections for customers who purchase or lease | ||
distributed energy resources or purchase electric energy or | ||
ancillary services from distributed energy resources; | ||
(3) information an owner or operator of a distributed | ||
energy resource must provide to the interconnecting transmission | ||
and distribution utility to ensure the resource will not adversely | ||
affect the transmission or distribution system; | ||
(4) interconnection guidelines that address: | ||
(A) the determination of whether a given | ||
interconnection or combination of interconnections would exceed a | ||
transmission and distribution utility's system capacity in a | ||
particular location; | ||
(B) considerations for feeder locations related | ||
to distributed energy resources; | ||
(C) considerations of the size or capacity of a | ||
distributed energy resource; | ||
(D) the assessment of potential adverse impacts | ||
to other customers in the area of the distributed energy resource; | ||
(E) means of recognizing and accounting for the | ||
fact that a distributed energy resource may be unavailable during a | ||
firm load shedding event or a power outage of the distribution | ||
system; and | ||
(F) other operating parameters necessary for the | ||
transmission and distribution utility's reliable operation of its | ||
transmission and distribution system; | ||
(5) a methodology for the appropriate allocation and | ||
recovery of the transmission and distribution utility's costs to | ||
interconnect a distributed energy resource; and | ||
(6) requirements for the independent organization | ||
certified under Section 39.151 for the ERCOT power region to report | ||
to the commission periodically: | ||
(A) the categories and generation levels of | ||
distributed energy resources allowed to participate in the ERCOT | ||
wholesale market; | ||
(B) the categories and megawatt levels of | ||
aggregated distributed energy resources allowed to participate in | ||
the ERCOT wholesale market; | ||
(C) accreditation of distributed energy | ||
resources allowed to participate in the ERCOT wholesale market; | ||
(D) performance metrics for distributed energy | ||
resources allowed to participate in the ERCOT wholesale market; and | ||
(E) other information the commission may | ||
require. | ||
(b) The commission shall authorize a transmission and | ||
distribution utility to: | ||
(1) defer for recovery in a later ratemaking | ||
proceeding the incremental operations and maintenance expenses, or | ||
other expenses, and the return, not otherwise recovered in a rate | ||
proceeding, associated with the installation, modification, | ||
upgrade, or maintenance of its transmission or distribution | ||
facilities required by an interconnection under Sections 39.701(b) | ||
and (c); and | ||
(2) request recovery of the costs associated with an | ||
interconnection under Sections 39.701(b) and (c), including any | ||
deferred expenses, through a proceeding under Section 35.004 or | ||
36.210 or in another ratemaking proceeding regardless of whether | ||
the utility first requested recovery in a base-rate proceeding. | ||
(c) Facilities required by an interconnection under | ||
Sections 39.701(b) and (c) are considered used and useful in | ||
providing service to the public and are prudent and includable in | ||
the rate base, regardless of the extent of the actual use of the | ||
facilities. | ||
(d) This subchapter does not: | ||
(1) require or authorize a distribution utility to | ||
procure distributed energy resource services to enable the | ||
operation of the distribution utility system; | ||
(2) require a distribution utility to disclose to any | ||
third party the utility's system planning information, studies, | ||
models, critical infrastructure information, or other confidential | ||
information; or | ||
(3) diminish a distribution utility's rights or | ||
obligations to own or operate its distribution system and provide | ||
electric delivery service to retail customers in the utility's | ||
certificated service area. | ||
Sec. 39.703. LIABILITY. An interconnecting transmission | ||
and distribution utility or retail electric provider providing | ||
service to a distributed energy resource to which this subchapter | ||
applies is not liable for: | ||
(1) a violation of reliability or service metrics | ||
caused by distributed energy resource operations; | ||
(2) damage, injury, or loss caused by distributed | ||
energy resource operations; or | ||
(3) a distributed energy resource's inability or | ||
failure to provide services or a penalty for such inability or | ||
failure. | ||
SECTION 4. (a) This section takes effect only if the Act of | ||
the 88th Legislature, Regular Session, 2023, relating to | ||
nonsubstantive additions to and corrections in enacted codes | ||
becomes law. | ||
(b) Subchapter Z, Chapter 39, Utilities Code, is amended by | ||
adding Section 39.9166 to read as follows: | ||
Sec. 39.9166. DISTRIBUTED ENERGY RESOURCES. (a) A | ||
customer who purchases or leases a distributed energy resource or | ||
enters into a power purchase agreement for a distributed energy | ||
resource in the ERCOT power region is entitled to the information | ||
and disclosures required under Chapter 115, Business & Commerce | ||
Code, and is entitled to protection from fraudulent, unfair, | ||
misleading, or deceptive practices. | ||
(b) An owner or operator of a distributed energy resource | ||
may provide energy or ancillary services in the wholesale market in | ||
the ERCOT power region through generating electricity and providing | ||
that electricity onto a distribution system in an area in which | ||
customer choice has been introduced in the manner provided by this | ||
section. | ||
(c) A person who owns or operates a distributed energy | ||
resource in an area in which customer choice has been introduced and | ||
is part of an aggregated distributed energy resource, or has not | ||
individually registered with the commission as its own power | ||
generation company, must sell the surplus electricity or ancillary | ||
services that are produced by the distributed energy resource and | ||
that are not consumed by the owner's premise to the retail electric | ||
provider that serves the premise's load at a value agreed to between | ||
the distributed energy resource owner and the retail electric | ||
provider that serves the premise's load. The value may be an agreed | ||
value based on the clearing price of energy or ancillary service at | ||
the time of day that the electricity is made available to the grid. | ||
(d) A retail electric provider may direct the offering or | ||
dispatch of aggregated distributed energy resources for which the | ||
retail electric provider facilitated aggregation. | ||
(e) The independent organization certified under Section | ||
39.151 for the ERCOT power region shall adopt procedures to ensure | ||
that the amount of electricity purchased from a distributed energy | ||
resource owner under this section is accounted for when settling | ||
the total load served by the retail electric provider that serves | ||
that premise owner's load. | ||
(f) A distributed energy resource owner that requests net | ||
metering services for purposes of this section must have metering | ||
devices capable of providing measurements consistent with the | ||
independent organization's settlement requirements. | ||
(g) A transmission and distribution utility may provide to | ||
customers educational information regarding the technical | ||
requirements for the interconnection of distributed energy | ||
resources to the distribution system. The provision of information | ||
under this subsection is not considered a competitive energy | ||
service. | ||
(h) This section does not apply to a purchase or agreement | ||
entered into under Section 39.914 or 39.916. | ||
SECTION 5. (a) This section takes effect only if the Act of | ||
the 88th Legislature, Regular Session, 2023, relating to | ||
nonsubstantive additions to and corrections in enacted codes does | ||
not become law. | ||
(b) Subchapter Z, Chapter 39, Utilities Code, is amended by | ||
adding Section 39.9166 to read as follows: | ||
Sec. 39.9166. DISTRIBUTED ENERGY RESOURCES. (a) A | ||
customer who purchases or leases a distributed energy resource or | ||
enters into a power purchase agreement for a distributed energy | ||
resource in the ERCOT power region is entitled to the information | ||
and disclosures required under Chapter 113, Business & Commerce | ||
Code, as added by Chapter 561 (S.B. 398), Acts of the 87th | ||
Legislature, Regular Session, 2021, and is entitled to protection | ||
from fraudulent, unfair, misleading, or deceptive practices. | ||
(b) An owner or operator of a distributed energy resource | ||
may provide energy or ancillary services in the wholesale market in | ||
the ERCOT power region through generating electricity and providing | ||
that electricity onto a distribution system in an area in which | ||
customer choice has been introduced in the manner provided by this | ||
section. | ||
(c) A person who owns or operates a distributed energy | ||
resource in an area in which customer choice has been introduced and | ||
is part of an aggregated distributed energy resource, or has not | ||
individually registered with the commission as its own power | ||
generation company, must sell the surplus electricity or ancillary | ||
services that are produced by the distributed energy resource and | ||
that are not consumed by the owner's premise to the retail electric | ||
provider that serves the premise's load at a value agreed to between | ||
the distributed energy resource owner and the retail electric | ||
provider that serves the premise's load. The value may be an agreed | ||
value based on the clearing price of energy or ancillary service at | ||
the time of day that the electricity is made available to the grid. | ||
(d) A retail electric provider may direct the offering or | ||
dispatch of aggregated distributed energy resources for which the | ||
retail electric provider facilitated aggregation. | ||
(e) The independent organization certified under Section | ||
39.151 for the ERCOT power region shall adopt procedures to ensure | ||
that the amount of electricity purchased from a distributed energy | ||
resource owner under this section is accounted for when settling | ||
the total load served by the retail electric provider that serves | ||
that premise owner's load. | ||
(f) A distributed energy resource owner that requests net | ||
metering services for purposes of this section must have metering | ||
devices capable of providing measurements consistent with the | ||
independent organization's settlement requirements. | ||
(g) A transmission and distribution utility may provide to | ||
customers educational information regarding the technical | ||
requirements for the interconnection of distributed energy | ||
resources to the distribution system. The provision of information | ||
under this subsection is not considered a competitive energy | ||
service. | ||
(h) This section does not apply to a purchase or agreement | ||
entered into under Section 39.914 or 39.916. | ||
SECTION 6. As soon as practicable after the effective date | ||
of this Act, the Public Utility Commission of Texas shall adopt | ||
rules necessary to implement the changes in law made by this Act. | ||
SECTION 7. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2023. |