81R8842 JJT-D
 
  By: Farabee H.B. No. 1643
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to net metering for retail electric service customers and
  compensation for excess electricity generated by certain renewable
  energy technology generators.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Section 39.923 to read as follows:
         Sec. 39.923.  NET METERING AND FAIR MARKET COMPENSATION OF
  ON-SITE ENERGY PRODUCTION FOR RETAIL CUSTOMERS. (a)  In this
  section:
               (1)  "Net metering service" means electric service for
  which a retail electric provider's customer is:
                     (A)  billed according to the difference between
  the amount of electricity provided by the retail electric provider
  to the customer during a billing period and the amount of
  electricity delivered from the customer's side of the meter using
  renewable energy technology; and
                     (B)  credited over an annualized period for the
  amount of electricity delivered from the customer's side of the
  meter using renewable energy technology when that amount is greater
  than the amount the retail electric provider delivers to the
  customer.
               (2)  "Renewable energy technology" has the meaning
  assigned by Section 39.904(d).
         (b)  Notwithstanding any other law, the commission by rule
  shall require an electric utility, retail electric provider,
  electric cooperative, or municipally owned utility to offer net
  metering service to all retail customers of the utility, provider,
  or cooperative who have an eligible on-site generating facility
  that generates electricity using renewable energy technology.  In
  developing rules under this subsection, the commission shall
  consider model net metering rules published by the Interstate
  Renewable Energy Council and similar model rules.
         (c)  Rules adopted under Subsection (b) must provide:
               (1)  that a retail customer is entitled to compensation
  at fair market value for metered electricity produced by the
  customer's eligible on-site renewable energy technology generating
  facility and delivered to the electric transmission grid;
               (2)  that, to the extent a retail customer earns a
  credit for the value of the customer's electricity delivered to the
  electric transmission grid, the electric utility, retail electric
  provider, electric cooperative, or municipally owned utility must
  pay the customer the excess value or allow the credit to offset
  later charges that accrue; and
               (3)  for a retail customer to receive payment for
  excess energy credits from the utility, provider, or cooperative if
  the customer terminates service.
         (d)  The commission by rule may establish standards an
  on-site renewable energy technology generating facility must meet
  to be eligible for compensation under Subsection (b), including
  standards for generating facility equipment and for
  interconnection. The standards must be designed so that
  small-scale renewable energy technology generating facilities
  located at residential and business addresses are eligible for the
  compensation.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2009.