Amend HB 1243 on third reading (second reading engrossment) 
as follows:    
	(1)  On page 3, line 13, strike "(q),".                                        
	(2)  On page 6, strike line 21, and substitute:                                

serves the owner's load at a value that is greater than or equal to 
the avoided cost of the electric utility or electric cooperative, 
as determined in accordance with commission rules, and, for an 
electric cooperative, that is at least 4.5 cents per kilowatt hour 
regardless of the electric cooperative's avoided cost.  A 
distributed generation owner who chooses to sell the owner's 
surplus electricity in an area in which customer choice has been 
introduced
	(3)  On page 7, line 14, strike "(k) The" and substitute:               
	(k)  In areas in which customer choice has been introduced, 
the       
	(4)  On page 8, line 4, strike "(m) A" and substitute:                  
	(m)  In areas in which customer choice has been introduced, a           
	(5)  On page 8, strike line 7 and substitute:                                  
		(1)  the owner's 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)                                                                   
	(6)  On page 9, strike lines 17-20.                                            
	(7)  On page 9, strike lines 22 and 23 and substitute:                         

Subsection (k) for determining a fair market value price in an area 
open to competition, a retail electric
	(8)  On page 10, strike lines 1-5 and substitute 
"technology.".       
	(9)  On page 13, strike lines 11 and 12 and substitute:                        

added by this Act, and shall report its findings and 
recommendations to the 82nd Legislature not later than January 15, 
2011.  The study must include assessments of:
		(1)  the development of the market in ERCOT for the sale 
of surplus electricity, including the prices that retail electric 
providers and electric utilities, municipal electric utilities, 
and electric cooperatives in areas in which customer choice has not 
been introduced pay for surplus electricity, and the amount of 
surplus electricity such entities have purchased;
		(2)  the rate of adoption by customers in this state of 
distributed renewable generation, including generation by solar 
and other on-site renewable technologies, including a comparison of 
adoption rates in this state compared to the adoption rates in other 
states, the extent to which adoption rates vary by retail market 
structure, the amount of direct installation incentives, the 
pricing for purchasing of surplus electricity, and the extent to 
which adoption rates are affected by the cost of other electric 
supplies;
		(3)  a comparison of the default fair market value 
price for surplus electricity to:
			(A)  the local market clearing prices of energy at 
the time of day surplus electricity has been made available to the 
grid; and
			(B)  the avoided costs of electric utilities as 
determined in accordance with commission rules; and
		(4)  the extent to which electric service customers 
with distributed renewable generation help avoid transmission and 
distribution upgrades and reduce pollution, including an 
estimation of the value of those benefits regionally.
	(c)  The study report must include any recommendations for 
improvements in policies necessary to appropriately encourage the 
development of distributed renewable generation technologies on 
customer premises.