Bill Text: TX HB4287 | 2023-2024 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the use of customer-sited distributed generation facilities owned by certain non-ERCOT electric utilities.
Spectrum: Moderate Partisan Bill (Republican 8-1)
Status: (Introduced - Dead) 2023-05-05 - Laid on the table subject to call [HB4287 Detail]
Download: Texas-2023-HB4287-Introduced.html
Bill Title: Relating to the use of customer-sited distributed generation facilities owned by certain non-ERCOT electric utilities.
Spectrum: Moderate Partisan Bill (Republican 8-1)
Status: (Introduced - Dead) 2023-05-05 - Laid on the table subject to call [HB4287 Detail]
Download: Texas-2023-HB4287-Introduced.html
88R11080 CXP-F | ||
By: Metcalf | H.B. No. 4287 |
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relating to the use of customer-sited distributed generation | ||
facilities owned by certain non-ERCOT electric utilities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter E, Chapter 36, Utilities Code, is | ||
amended by adding Section 36.215 to read as follows: | ||
Sec. 36.215. RECOVERY OF INVESTMENT IN DISTRIBUTED | ||
GENERATION AND RATES FOR BACKUP ELECTRIC SERVICE FOR CERTAIN | ||
NON-ERCOT UTILITIES. (a) In this section: | ||
(1) "Customer-sited distributed generation facility" | ||
means a dispatchable generation facility that is installed on the | ||
electric utility's side of the retail meter and owned and operated | ||
by the electric utility: | ||
(A) with a nameplate capacity of not more than 10 | ||
megawatts; | ||
(B) that is capable of generating and providing | ||
backup electric service to a customer during a power grid outage; | ||
and | ||
(C) sited at or adjacent to the customer's | ||
premises. | ||
(2) "Host customer" means a customer receiving backup | ||
electric service under this section. | ||
(b) This section applies only to an electric utility that | ||
operates solely outside of ERCOT in areas of this state included in | ||
the Southeastern Electric Reliability Council. | ||
(c) An electric utility may provide backup electric service | ||
to a nonresidential retail customer through a customer-sited | ||
distributed generation facility. | ||
(d) The commission, on the petition of an electric utility, | ||
shall establish just and reasonable rates for backup electric | ||
service supplied using a customer-sited distributed generation | ||
facility, consistent with this chapter, provided that costs are | ||
allocated as follows: | ||
(1) if a customer-sited distributed generation | ||
facility is capable of directly supplying energy to the | ||
distribution system or of disconnecting the host customer from the | ||
distribution system when not being used to supply backup electric | ||
service to the host customer and thereby reducing system load, the | ||
commission shall allocate the cost of owning and operating the | ||
facility between the host customer and the electric utility's | ||
broader customer base, including an allocation of any margins from | ||
off-system energy sales attributable to the facility to the host | ||
customer in reasonable proportion to the allocation of nonfuel | ||
costs as provided by Subdivision (2); and | ||
(2) the allocation of nonfuel costs to the host | ||
customer must be based on the cost to purchase, install, | ||
interconnect, own, operate, and maintain a customer-sited | ||
distributed generation facility that is above the electric | ||
utility's levelized avoided cost to install, own, operate, and | ||
maintain a single-cycle combustion turbine, on a per kilowatt | ||
basis, grossed up for avoided line losses based on the utility's | ||
transmission and distribution line loss factors last approved by | ||
the commission. | ||
(e) In a rate proceeding in which an electric utility seeks | ||
to recover investment in a customer-sited distributed generation | ||
facility that is interconnected to the utility's distribution | ||
system, the cost of the facility allocable to the utility's broader | ||
customer base must be allocated among customer classes on the same | ||
basis used to allocate the utility's distribution-level | ||
investments. | ||
SECTION 2. 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. |