Amend CSSB 483 (house committee printing) by adding the 
following appropriately numbered SECTION to read as follows and 
renumbering subsequent SECTIONS accordingly:
	SECTION ____.  (a)  In this section, "commission" means the 
Public Utility Commission of Texas.
	(b)  The commission shall conduct a study on the potential of 
electric energy storage devices to benefit the operation of 
transmission and distribution systems. In conducting the study, the 
commission shall consider any relevant issues, including:
		(1)  the effect of the devices on system reliability;                         
		(2)  the advantages and disadvantages of transmission 
and distribution utilities owning and operating those devices as 
transmission and distribution facilities;
		(3)  the manner in which the devices may be integrated 
into the ERCOT operating system, if applicable;
		(4)  the manner in which the devices may benefit power 
generation companies, retail electric providers, electric 
utilities, and transmission and distribution utilities; and
		(5)  the appropriate methods to bill and account for 
any costs and revenue associated with the electric energy that is 
used to charge, and that is later discharged from, a device.
	(c)  The commission shall prepare a report on the results of 
the study required by this section.  The report must include the 
commission's conclusions on the potential of electric energy 
storage devices and, as appropriate, recommendations to the 
legislature on legislation or other action necessary to realize 
that potential.  The commission shall include the report in the 
electric market scope of competition report required by Section 
31.003, Utilities Code, that the commission submits to the 81st 
Legislature.  The commission shall conduct the study and prepare 
the report as required by this section:
		(1)  with input from the ERCOT independent system 
operator; and             
		(2)  after requesting comments and input from all 
interested parties.       
	(d)  The commission may authorize one or more electric 
utilities or transmission or distribution utilities to operate 
demonstration projects that involve facilities capable of not more 
than two megawatts of electric energy storage for the purpose of 
obtaining a better understanding of the facilities':
		(1)  cost;                                                                    
		(2)  value; and                                                               
		(3)  operational characteristics, including the 
efficient use of the transmission system and the facilities' effect 
on removing transmission constraints.
	(e)  The operation of a demonstration project under 
Subsection (d) of this section does not prejudice the study 
required by this section or any future determination relating to 
the appropriateness of an electric utility or transmission and 
distribution utility owning and operating electric energy storage 
facilities.  This subsection and Subsection (d) of this section may 
not be interpreted to require an electric utility or transmission 
and distribution utility to install an electric energy storage 
facility.