Bill Text: TX SB1239 | 2013-2014 | 83rd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
83R6198 JJT-F | ||
By: Rodriguez | S.B. No. 1239 |
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relating to compensation for excess electricity generated by a | ||
retail electric customer's on-site generation. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 31.002(6), Utilities Code, is amended to | ||
read as follows: | ||
(6) "Electric utility" means a person or river | ||
authority that owns or operates for compensation in this state | ||
equipment or facilities to produce, generate, transmit, | ||
distribute, sell, or furnish electricity in this state. The term | ||
includes a lessee, trustee, or receiver of an electric utility and a | ||
recreational vehicle park owner who does not comply with Subchapter | ||
C, Chapter 184, with regard to the metered sale of electricity at | ||
the recreational vehicle park. The term does not include: | ||
(A) a municipal corporation; | ||
(B) a qualifying facility; | ||
(C) a power generation company; | ||
(D) an exempt wholesale generator; | ||
(E) a power marketer; | ||
(F) a corporation described by Section 32.053 to | ||
the extent the corporation sells electricity exclusively at | ||
wholesale and not to the ultimate consumer; | ||
(G) an electric cooperative; | ||
(H) a retail electric provider; | ||
(I) this state or an agency of this state; [ |
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(J) a person not otherwise an electric utility | ||
who: | ||
(i) furnishes an electric service or | ||
commodity only to itself, its employees, or its tenants as an | ||
incident of employment or tenancy, if that service or commodity is | ||
not resold to or used by others; | ||
(ii) owns or operates in this state | ||
equipment or facilities to produce, generate, transmit, | ||
distribute, sell, or furnish electric energy to an electric | ||
utility, if the equipment or facilities are used primarily to | ||
produce and generate electric energy for consumption by that | ||
person; or | ||
(iii) owns or operates in this state a | ||
recreational vehicle park that provides metered electric service in | ||
accordance with Subchapter C, Chapter 184; or | ||
(K) a distributed renewable generation owner, as | ||
defined by Section 39.916. | ||
SECTION 2. 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 39.916 | ||
applies to an electric cooperative. Section 39.9161 applies to a | ||
municipally owned utility. 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 3. The heading to Section 39.916, Utilities Code, | ||
is amended to read as follows: | ||
Sec. 39.916. [ |
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GENERATION. | ||
SECTION 4. Section 39.916(a), 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 5. Section 39.916, Utilities Code, is amended by | ||
amending Subsections (b), (c), (e), (f), and (j) and adding | ||
Subsections (d-1), (l), (m), (n), (o), and (p) to read as follows: | ||
(b) A transmission and distribution utility, electric | ||
cooperative, or electric utility shall allow interconnection if: | ||
(1) the distributed renewable generation to be | ||
interconnected has a five-year warranty against breakdown or undue | ||
degradation; and | ||
(2) the rated capacity of the distributed renewable | ||
generation does not exceed the transmission and distribution | ||
utility, electric cooperative, or electric utility service | ||
capacity. | ||
(c) A customer may request interconnection by filing an | ||
application for interconnection with the transmission and | ||
distribution utility, electric cooperative, or electric | ||
utility. Procedures of a transmission and distribution utility, | ||
electric cooperative, or electric utility for the submission and | ||
processing of a customer's application for interconnection shall be | ||
consistent with rules adopted by the commission regarding | ||
interconnection. | ||
(d-1) The sale, rental, lease, or maintenance of | ||
distributed renewable generation equipment, or the sale of electric | ||
energy produced by distributed renewable generation to the customer | ||
on whose side of the meter the distributed renewable generation is | ||
installed, does not constitute provision of retail electric | ||
service. | ||
(e) A transmission and distribution utility, electric | ||
cooperative, electric utility, or retail electric provider may not | ||
require a distributed renewable generation owner whose distributed | ||
renewable generation meets the standards established by rule under | ||
Subsection (d) 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. | ||
(f) A transmission and distribution utility, electric | ||
cooperative, or electric utility shall make available to a | ||
distributed renewable generation 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 [ |
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distributed renewable generation owner 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 or electric cooperative that serves the | ||
owner'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 | ||
provider that serves that owner's load [ |
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distributed renewable generation owner requesting [ |
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services for purposes of this section must have metering devices | ||
capable of providing measurements consistent with the independent | ||
organization's settlement requirements. | ||
(l) 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 by an alternative method authorized by this | ||
subsection. A retail electric provider may choose to determine the | ||
fair market value for purchasing surplus electricity by 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 must use the same method of determining fair | ||
market value for all distributed renewable generation owners | ||
eligible to be compensated for purchased surplus electricity. A | ||
retail electric provider that chooses to determine the fair market | ||
value by an alternative method at any time may not after that date | ||
use the periodic proxy method described by this subsection. A | ||
distributed renewable generation owner may file a written complaint | ||
with the commission for a violation of this subsection or | ||
Subsection (m). | ||
(m) A retail electric provider that purchases surplus | ||
electricity from a distributed renewable generation owner under | ||
Subsection (l) must compensate the distributed renewable | ||
generation owner by making a payment not less frequently than once | ||
each quarter or by applying a credit to an account the credit | ||
balance of which may be carried forward until the 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. | ||
(n) In areas in which customer choice has not been | ||
introduced, an electric utility or electric cooperative shall | ||
purchase surplus electricity at a value that is at least equal to | ||
the avoided cost of the electric utility or electric cooperative, | ||
as applicable. A distributed renewable generation owner may file a | ||
written complaint with the commission for a violation of this | ||
subsection or Subsection (o). | ||
(o) An electric utility or electric cooperative that | ||
purchases surplus electricity from a distributed renewable | ||
generation owner under Subsection (n) must compensate the | ||
distributed renewable generation owner by making a payment made not | ||
less frequently than once each quarter or by applying a credit to an | ||
account the credit balance of which may be carried forward until the | ||
credit has been redeemed. The electric utility or electric | ||
cooperative 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. | ||
(p) The commission by rule may establish standards | ||
distributed renewable generation must meet to be eligible for | ||
compensation under this section, including interconnection | ||
standards and standards for the generating equipment. The | ||
standards must be designed so that small-scale distributed | ||
renewable generation at residential addresses is eligible for | ||
compensation. 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 | ||
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; and | ||
(B) installed on the customer's side of the meter | ||
for a residential retail electric customer or a retail electric | ||
customer that is a public school or a facility owned by a religious | ||
organization and used primarily as a place of religious worship, | ||
such as a church, synagogue, or mosque; 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 | ||
at a facility owned by a religious organization and used primarily | ||
as a place of religious worship, such as a church, synagogue, or | ||
mosque; or | ||
(C) 250 kilowatts for a retail electric customer | ||
that is a public school. | ||
SECTION 6. Subchapter Z, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.9161 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 and metering to account for | ||
electricity produced by distributed renewable generation owners; | ||
and | ||
(2) provide the utility's customers access to | ||
interconnection and metering of distributed renewable generation. | ||
(c) The governing body of a municipally owned utility shall | ||
provide oversight and adopt rates, rules, and procedures to allow | ||
interconnection and provide metering 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 metering 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 | ||
metering; and | ||
(2) by rule shall establish minimum standards and | ||
procedures for interconnection and metering by the municipally | ||
owned utility. | ||
(e) A municipally owned utility that had retail sales of | ||
500,000 megawatt hours or more in 2012 shall file the utility's | ||
interconnection and metering rates, rules, and procedures with the | ||
State Energy Conservation Office not later than January 1, 2014. | ||
The municipally owned utility shall make timely updates to the | ||
utility's filed rates, rules, and procedures. | ||
(f) A municipally owned utility that has adopted rules and | ||
procedures related to interconnection and metering 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 rules and procedures related to | ||
interconnection and metering 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. | ||
SECTION 7. 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. | ||
On the Internet website found at http://www.powertochoose.org, 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, for each retail electric provider using that | ||
website. | ||
SECTION 8. Section 39.916(h), Utilities Code, is repealed. | ||
SECTION 9. This Act takes effect January 1, 2014. |