Bill Text: TX SB1239 | 2013-2014 | 83rd Legislature | Comm Sub
Bill Title: Relating to distributed renewable generation and compensation for excess electricity generated by distributed renewable generation.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-05-17 - Not again placed on intent calendar [SB1239 Detail]
Download: Texas-2013-SB1239-Comm_Sub.html
By: Rodriguez | S.B. No. 1239 | |
(In the Senate - Filed March 6, 2013; March 13, 2013, read | ||
first time and referred to Committee on Business and Commerce; | ||
May 2, 2013, reported adversely, with favorable Committee | ||
Substitute by the following vote: Yeas 6, Nays 0; May 2, 2013, sent | ||
to printer.) | ||
COMMITTEE SUBSTITUTE FOR S.B. No. 1239 | By: Watson |
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relating to distributed renewable generation and compensation for | ||
excess electricity generated by distributed renewable generation. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 39.002, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 39.002. APPLICABILITY. Except as provided by this | ||
section, this [ |
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39.157(e), 39.203, 39.903, 39.904, 39.9051, 39.9052, and | ||
39.914(e), does not apply to a municipally owned utility or to an | ||
electric cooperative. Sections 39.157(e), 39.203, and 39.904[ |
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cooperative that is offering customer choice. Section 39.9161 | ||
applies to a municipally owned utility. Section 39.9162 applies to | ||
an electric cooperative. If there is a conflict between the | ||
specific provisions of this chapter and any other provisions of | ||
this title, except for Chapters 40 and 41, the provisions of this | ||
chapter control. | ||
SECTION 2. The heading to Section 39.916, Utilities Code, | ||
is amended to read as follows: | ||
Sec. 39.916. [ |
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GENERATION. | ||
SECTION 3. Subsection (a), Section 39.916, Utilities Code, | ||
is amended by adding Subdivision (4) to read as follows: | ||
(4) "Surplus electricity" means electricity generated | ||
by distributed renewable generation that is not consumed at the | ||
place the distributed renewable generation is installed and that | ||
flows onto the electric distribution system. | ||
SECTION 4. Section 39.916, Utilities Code, is amended by | ||
amending Subsections (c), (f), and (j) and adding Subsections | ||
(k-1), (l), (m), (n), (o), and (p) to read as follows: | ||
(c) A distributed renewable generation owner [ |
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request interconnection by filing an application for | ||
interconnection with the transmission and distribution utility or | ||
electric utility. Procedures of a transmission and distribution | ||
utility or electric utility for the submission and processing of a | ||
distributed renewable generation owner's [ |
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for interconnection shall be consistent with rules adopted by the | ||
commission regarding interconnection. | ||
(f) On request of a distributed renewable generation owner, | ||
a [ |
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shall make available to the [ |
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owner for purposes of this section metering required for services | ||
provided under this section, including separate meters that measure | ||
the load and generator output or a single meter capable of measuring | ||
in-flow and out-flow at the point of common coupling meter point. | ||
The distributed renewable generation owner must pay the | ||
differential cost of the metering unless the meters are provided at | ||
no additional cost. Except as provided by this section, Section | ||
39.107 applies to metering under this section. | ||
(j) A [ |
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chooses to sell the owner's surplus electricity in an area [ |
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surplus electricity produced to the retail electric provider that | ||
serves the retail electric customer's [ |
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who chooses to sell the owner's surplus electricity in an area in | ||
which customer choice has not been introduced must sell the owner's | ||
surplus electricity to the electric utility that serves the retail | ||
electric customer's load [ |
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39.151 shall develop procedures so that the amount of electricity | ||
purchased from a distributed renewable generation owner under this | ||
section is accounted for in settling the total load served by the | ||
retail electric provider that serves that retail electric | ||
customer's [ |
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renewable generation owner requesting [ |
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purposes of this section must have metering devices capable of | ||
providing measurements consistent with the independent | ||
organization's settlement requirements. | ||
(k-1) In areas in which customer choice has been introduced, | ||
a retail electric provider shall purchase surplus electricity at a | ||
fair market value determined using a price that provides a periodic | ||
proxy, using a period of a month or longer, for the load zone | ||
real-time market clearing price, unless the provider chooses to use | ||
a fair market value determined by a reasonable alternative method, | ||
including the load zone real-time market clearing price at the time | ||
of day the surplus electricity is made available to the grid or by | ||
the simple average, during the period for which the surplus | ||
electricity being purchased was generated, of the load zone | ||
real-time market clearing price for energy at the time of day | ||
specified in the ERCOT protocols for the applicable type of | ||
distributed renewable generation for load reduction at locations | ||
without interval data meters. A retail electric provider may | ||
compensate a distributed renewable generation owner for purchased | ||
surplus electricity at a value greater than the fair market value. | ||
A distributed renewable generation owner may file a written | ||
complaint with the commission for a violation of this subsection or | ||
Subsection (l). This section does not apply to a retail electric | ||
provider providing service under Section 39.106. | ||
(l) A retail electric provider that purchases surplus | ||
electricity from a distributed renewable generation owner under | ||
Subsection (k-1) must compensate the distributed renewable | ||
generation owner by making a payment not less frequently than once | ||
each quarter or by applying a monetary credit to an account the | ||
monetary credit balance of which may be carried forward until the | ||
monetary credit has been redeemed. The retail electric provider | ||
shall inform the distributed renewable generation owner of the | ||
amount of surplus electricity purchased, measured in kilowatt | ||
hours, and the price paid for the surplus electricity purchased. | ||
(m) In areas in which customer choice has not been | ||
introduced, an electric utility shall purchase surplus electricity | ||
at a value that is at least equal to the avoided cost of the electric | ||
utility as determined by commission rule. A distributed renewable | ||
generation owner may file a written complaint with the commission | ||
for a violation of this subsection or Subsection (n). | ||
(n) An electric utility that purchases surplus electricity | ||
from a distributed renewable generation owner under Subsection (m) | ||
must compensate the distributed renewable generation owner by | ||
making a payment not less frequently than once each quarter or by | ||
applying a monetary credit to an account the monetary credit | ||
balance of which may be carried forward until the monetary credit | ||
has been redeemed. The electric utility shall inform the | ||
distributed renewable generation owner of the amount of surplus | ||
electricity purchased, measured in kilowatt hours, and the price | ||
paid for the surplus electricity purchased. | ||
(o) A distributed renewable generation owner is qualified | ||
to be compensated for surplus electricity purchased under this | ||
section only if: | ||
(1) the distributed renewable generation is: | ||
(A) rated to produce an amount of electricity | ||
annually that is less than or equal to the amount of electricity the | ||
retail electric customer for whom the distributed renewable | ||
generation is installed is reasonably expected to consume annually; | ||
and | ||
(B) installed on the customer's side of the meter | ||
for a residential retail electric customer or a retail electric | ||
customer that is: | ||
(i) a public school; or | ||
(ii) the premises of a religious | ||
organization if those premises are exempt from ad valorem taxation | ||
under Section 11.20, Tax Code; and | ||
(2) the generating capacity of the distributed | ||
renewable generation does not exceed: | ||
(A) 10 kilowatts for a residential retail | ||
electric customer; | ||
(B) 150 kilowatts for a retail electric customer | ||
that is the premises of a religious organization if those premises | ||
are exempt from ad valorem taxation under Section 11.20, Tax Code; | ||
or | ||
(C) 250 kilowatts for a retail electric customer | ||
that is a public school. | ||
(p) Notwithstanding Subsections (k-1) and (o), in areas in | ||
which customer choice has been introduced, a distributed renewable | ||
generation owner that does not meet the qualifications prescribed | ||
by Subsection (o) may be paid or credited for the owner's surplus | ||
electricity at a value agreed on by the owner and the retail | ||
electric provider that serves the retail electric customer's load. | ||
SECTION 5. Subchapter Z, Chapter 39, Utilities Code, is | ||
amended by adding Sections 39.9161 and 39.9162 to read as follows: | ||
Sec. 39.9161. DISTRIBUTED RENEWABLE GENERATION WITH | ||
MUNICIPALLY OWNED UTILITIES. (a) In this section, "distributed | ||
renewable generation," "distributed renewable generation owner," | ||
and "interconnection" have the meanings assigned by Section 39.916. | ||
(b) A municipally owned utility shall: | ||
(1) allow interconnection by distributed renewable | ||
generation owners and payment for surplus electricity produced by | ||
those owners; and | ||
(2) provide the utility's customers access to | ||
interconnection of distributed renewable generation and payment | ||
for surplus electricity produced. | ||
(c) The governing body of a municipally owned utility shall | ||
provide oversight and adopt rates, rules, and procedures to allow | ||
interconnection and provide payment for surplus electricity | ||
consistent with the goals established by Section 39.916. This | ||
subsection does not prevent the governing body of a municipally | ||
owned utility from adopting rates, rules, and procedures for | ||
interconnection and payment for surplus electricity that are more | ||
favorable to a distributed renewable generation owner than those | ||
established by any other law or rule of the commission. | ||
(d) If a municipally owned utility implements customer | ||
choice under Chapter 40, the commission: | ||
(1) has jurisdiction over the municipally owned | ||
utility's distributed renewable generation interconnection and | ||
payment for surplus electricity; and | ||
(2) by rule shall establish minimum standards and | ||
procedures for interconnection and payment for surplus electricity | ||
by the municipally owned utility. | ||
(e) A municipally owned utility that had retail sales of | ||
500,000 megawatt hours or more in 2012 shall: | ||
(1) file the utility's interconnection and surplus | ||
electricity rates, rules, and procedures with the State Energy | ||
Conservation Office not later than January 1, 2015; and | ||
(2) make timely updates to the utility's rates, rules, | ||
and procedures filed under Subdivision (1). | ||
(f) A municipally owned utility that has adopted rules and | ||
procedures related to interconnection and payment for surplus | ||
electricity shall make available, on a publicly accessible Internet | ||
website or at the customary location for publicly posted notices: | ||
(1) information on the purchase price offered per | ||
kilowatt hour for surplus electricity produced by distributed | ||
renewable generation; and | ||
(2) information instructing customers with | ||
distributed renewable generation how to request and obtain the | ||
purchase rates offered. | ||
(g) The governing body of a municipally owned utility that | ||
had retail sales of less than 500,000 megawatt hours in 2012 shall | ||
provide oversight and adopt rates, rules, and procedures related to | ||
interconnection and payment for surplus electricity of distributed | ||
renewable generation systems with a generating capacity considered | ||
appropriate by the municipally owned utility on or before the 120th | ||
day after the date the governing body receives a bona fide request | ||
for interconnection. | ||
Sec. 39.9162. DISTRIBUTED RENEWABLE GENERATION WITH | ||
ELECTRIC COOPERATIVES. (a) In this section, "distributed | ||
renewable generation," "distributed renewable generation owner," | ||
and "interconnection" have the meanings assigned by Section 39.916. | ||
(b) An electric cooperative shall: | ||
(1) allow interconnection by distributed renewable | ||
generation owners and payment for surplus electricity produced by | ||
those owners; and | ||
(2) provide its members access to interconnection of | ||
distributed renewable generation and payment for surplus | ||
electricity produced. | ||
(c) An electric cooperative shall allow interconnection if: | ||
(1) the distributed renewable generation to be | ||
interconnected has a five-year warranty against breakdown or undue | ||
degradation; | ||
(2) the rated capacity of the distributed renewable | ||
generation does not exceed the electric cooperative's service | ||
capacity; and | ||
(3) the distributed renewable generation meets other | ||
technical requirements for interconnection that are consistent | ||
with commission rules. | ||
(d) The board of directors of an electric cooperative shall | ||
provide oversight and adopt rates, rules, and procedures to allow | ||
interconnection and provide payment for surplus electricity | ||
consistent with the goals established by Section 39.916. This | ||
subsection does not prevent the board of directors of an electric | ||
cooperative from adopting rates, rules, and procedures for | ||
interconnection and payment for surplus electricity that are more | ||
favorable to a distributed renewable generation owner than those | ||
established by any other law or rule of the commission. | ||
(e) A member may request interconnection by filing an | ||
application for interconnection with the electric cooperative. An | ||
electric cooperative's procedures for the submission and | ||
processing of a member's application for interconnection must be | ||
consistent with rules adopted by the commission regarding | ||
interconnection. | ||
(f) An electric cooperative may not require a distributed | ||
renewable generation owner whose distributed renewable generation | ||
meets the standards established under Subsection (c) to purchase an | ||
amount, type, or classification of liability insurance the | ||
distributed renewable generation owner would not have in the | ||
absence of the distributed renewable generation. | ||
(g) An electric cooperative shall compensate the | ||
distributed renewable generation owner for surplus electricity at a | ||
value that is at least equal to the avoided cost of the cooperative. | ||
The electric cooperative may determine the cooperative's avoided | ||
cost as either: | ||
(1) the sum of the average wholesale fuel and energy | ||
costs, expressed in cents per kilowatt hour, on the wholesale power | ||
bill for the applicable billing period; or | ||
(2) the avoided cost of the wholesale power supplier | ||
as determined in accordance with the rules and regulations of the | ||
Federal Energy Regulatory Commission if the electric cooperative | ||
purchases all of its power from a wholesale power supplier | ||
regulated by the Federal Energy Regulatory Commission. | ||
(h) If an electric cooperative implements customer choice | ||
under Chapter 41, the commission: | ||
(1) has jurisdiction over the electric cooperative's | ||
distributed renewable generation interconnection and payment for | ||
surplus electricity; and | ||
(2) by rule shall establish minimum standards and | ||
procedures for interconnection and payment for surplus electricity | ||
by the electric cooperative. | ||
(i) An electric cooperative that had retail sales of 500,000 | ||
megawatt hours or more in 2012 shall file the cooperative's | ||
interconnection and surplus electricity rates, rules, and | ||
procedures with the State Energy Conservation Office not later than | ||
January 1, 2015, and shall make timely updates to the cooperative's | ||
filed rates, rules, and procedures. | ||
(j) An electric cooperative that has adopted rules and | ||
procedures related to interconnection and payment for surplus | ||
electricity shall make available, on the cooperative's Internet | ||
website or at the customary location for the cooperative's posted | ||
notices: | ||
(1) information on the purchase price offered per | ||
kilowatt hour for surplus electricity produced by distributed | ||
renewable generation; and | ||
(2) information instructing members with distributed | ||
renewable generation how to request and obtain the purchase rates | ||
offered. | ||
(k) The board of directors of an electric cooperative that | ||
had retail sales of less than 500,000 megawatt hours in 2012 shall | ||
provide oversight and adopt rates, rules, and procedures related to | ||
interconnection of distributed renewable generation and payment | ||
for surplus electricity on or before the 120th day after the date | ||
the board of directors receives a bona fide request for | ||
interconnection. | ||
SECTION 6. Subchapter Z, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.926 to read as follows: | ||
Sec. 39.926. INFORMATION ON INTERNET REGARDING PURCHASE OF | ||
SURPLUS ELECTRICITY PRODUCED BY DISTRIBUTED RENEWABLE GENERATION. | ||
The commission shall provide for access to easily comparable | ||
information regarding retail electric providers' offers to | ||
residential distributed renewable generation owners for their | ||
surplus electricity, including information regarding their | ||
contract terms, on an Internet website maintained by the | ||
commission. | ||
SECTION 7. Subsection (h), Section 39.916, Utilities Code, | ||
is repealed. | ||
SECTION 8. This Act takes effect January 1, 2014. | ||
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