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A BILL TO BE ENTITLED
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AN ACT
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relating to the rental and operation of electric generation |
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equipment. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.002, Utilities Code, is amended by |
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adding Subdivision (4-b) and amending Subdivision (6) to read as |
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follows: |
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(4-b) "Electric generation equipment lessor or |
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operator" means a person who rents to or operates for compensation |
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on behalf of a third party electric generation equipment that: |
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(A) is used on a site of the third party until the |
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third party is able to obtain sufficient electricity service; |
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(B) produces electricity on site to be consumed |
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by the third party and not resold; and |
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(C) does not interconnect with the electric |
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transmission or distribution system. |
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(6) "Electric utility" means a person or river |
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authority that owns or operates for compensation in this state |
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equipment or facilities to produce, generate, transmit, |
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distribute, sell, or furnish electricity in this state. The term |
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includes a lessee, trustee, or receiver of an electric utility and a |
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recreational vehicle park owner who does not comply with Subchapter |
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C, Chapter 184, with regard to the metered sale of electricity at |
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the recreational vehicle park. The term does not include: |
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(A) a municipal corporation; |
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(B) a qualifying facility; |
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(C) a power generation company; |
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(D) an exempt wholesale generator; |
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(E) a power marketer; |
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(F) a corporation described by Section 32.053 to |
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the extent the corporation sells electricity exclusively at |
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wholesale and not to the ultimate consumer; |
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(G) an electric cooperative; |
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(H) a retail electric provider; |
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(I) this state or an agency of this state; or |
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(J) a person not otherwise an electric utility |
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who: |
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(i) furnishes an electric service or |
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commodity only to itself, its employees, or its tenants as an |
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incident of employment or tenancy, if that service or commodity is |
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not resold to or used by others; |
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(ii) owns or operates in this state |
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equipment or facilities to produce, generate, transmit, |
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distribute, sell, or furnish electric energy to an electric |
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utility, if the equipment or facilities are used primarily to |
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produce and generate electric energy for consumption by that |
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person; [or] |
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(iii) owns or operates in this state a |
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recreational vehicle park that provides metered electric service in |
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accordance with Subchapter C, Chapter 184; or |
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(iv) is an electric generation equipment |
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lessor or operator. |
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SECTION 2. Section 37.001(3), Utilities Code, is amended to |
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read as follows: |
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(3) "Retail electric utility" means a person, |
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political subdivision, electric cooperative, or agency that |
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operates, maintains, or controls in this state a facility to |
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provide retail electric utility service. The term does not include |
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a corporation described by Section 32.053 to the extent that the |
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corporation sells electricity exclusively at wholesale and not to |
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the ultimate consumer. A qualifying cogenerator that sells electric |
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energy at retail to the sole purchaser of the cogenerator's thermal |
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output under Sections 35.061 and 36.007 is not for that reason |
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considered to be a retail electric utility. The owner or operator of |
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a qualifying cogeneration facility who was issued the necessary |
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environmental permits from the Texas Natural Resource Conservation |
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Commission after January 1, 1998, and who commenced construction of |
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such qualifying facility before July 1, 1998, may provide |
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electricity to the purchasers of the thermal output of that |
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qualifying facility and shall not for that reason be considered an |
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electric utility or a retail electric utility, provided that the |
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purchasers of the thermal output are owners of manufacturing or |
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process operation facilities that are located on a site entirely |
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owned before September, 1987, by one owner who retained ownership |
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after September, 1987, of some portion of the facilities and that |
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those facilities now share some integrated operations, such as the |
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provision of services and raw materials. A person who is an electric |
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generation equipment lessor or operator is not for that reason |
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considered to be a retail electric utility. |
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SECTION 3. This Act takes effect September 1, 2021. |
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