Enrolled Bill Summary

Senate Bill 365	Senate Author:  Ogden
Effective:  9-1-11	House Sponsor:  Strama

            Senate Bill 365 amends the Utilities Code to authorize a person who owns or operates a distributed natural gas generation facility, as it is defined by the bill, to sell electric power generated by the facility and redefines "power generation company" to include a person who owns or operates a distributed natural gas generation facility.  The electric utility, electric cooperative, or retail electric provider that provides retail electricity service to the facility may purchase electric power tendered to it by the owner or operator of the facility at an agreed upon value, basing the value wholly or partly on the clearing price of energy at the time of day and at the location at which the electric power is made available to the electric grid.  The bill requires the electric utility or cooperative, at the request of the owner or operator of the facility, to allow the transmission and distribution facilities to be used to transmit the electric power to another entity that is acceptable to the owner or operator in accordance with Public Utility Commission of Texas rules or a tariff approved by the Federal Energy Regulatory Commission.  The bill sets out provisions relating to cost recovery under specified circumstances.