BILL ANALYSIS

Senate Research Center	S.B. 1295
88R10816 JXC-F	By: Schwertner
	Business & Commerce
	3/24/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Technology is shifting and the distribution system has new types of generation resources and loads connecting at the distribution system. This includes rooftop solar, batteries, distributed energy resources, and electric vehicles.

ERCOT has insight into resources and loads connected at the transmission level but lacks insight into the distribution system. ERCOT needs better information about the various devices connected to the distribution system to ensure it can continue to manage the grid reliably. Additionally, the Public Utility Commission of Texas (PUC) needs the ability to obtain more information from generators at the distribution level as it looks to expand its pilot project related to aggregate distribute energy resources.

S.B. 1295 aims to allow ERCOT and the PUC the appropriate visibility into the distribution level by authorizing the entities to require distributed generators to provide information about their generators to the interconnecting TDU, MOU, or co-op. The bill also allows ERCOT and the PUC to require TDUs, MOUs, and co-ops to provide ERCOT, on an individual or aggregated basis, information about distributed generators or distribution-connected loads within their service territories.

As proposed, S.B. 1295 amends current law relating to the provision of information regarding distributed generation and certain electrical loads.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 39.9165, Utilities Code, as follows:

Sec. 39.9165. New heading: DISTRIBUTED GENERATION FACILITY REPORTING. (a) Defines "distributed generation facility." Deletes existing definition of "distributed generation."

(b) Authorizes an independent organization certified under Section 39.151 (Essential Organizations) to require an owner or operator of a distributed generation facility operating in the power region served by the independent organization to provide information about the distributed generation facility, as specified by the independent organization, to the owner's or operator's interconnecting electric cooperative, municipally owned utility, or transmission and distribution utility. Deletes existing text requiring an independent organization certified under Section 39.151 to require an owner or operator of distributed generation to register with the organization and interconnecting transmission and distribution utility information necessary for the interconnection of the distributed generator.

(c) Authorizes an independent organization certified under Section 39.151 to require each electric cooperative, municipally owned utility, and transmission and distribution utility operating in the power region served by the independent organization to provide to the independent organization any information about distributed generation facilities or distribution-connected loads in the service territory of the electric cooperative, municipally owned utility, or transmission and distribution utility that the independent organization identifies as necessary for maintaining system reliability. Deletes existing text providing that this section does not apply to distributed generation serving a residential property.

(d) Authorizes the Public Utility Commission of Texas (PUC) to require an owner or operator of a distributed generation facility or an electric cooperative, municipally owned utility, or transmission and distribution utility to provide the information described by Subsections (b) and (c).

(e) Authorizes the PUC or an independent organization certified under Section 39.151 to require information described by Subsections (b) and (c) to be provided on an individual basis or on an aggregated basis.

SECTION 2. Effective date: upon passage or September 1, 2023.