81R9151 JJT-F
 
  By: Solomons H.B. No. 1866
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to distributed renewable generation of electric power.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 17.002, Utilities Code, is amended by
  adding Subdivision (4-a) to read as follows:
               (4-a)  "Distributed renewable generation" has the
  meaning assigned by Section 39.916.
         SECTION 2.  Section 17.004, Utilities Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  All buyers of retail electric services are entitled to
  the opportunity to interconnect distributed renewable generation
  according to conditions established by commission rule.
         SECTION 3.  Section 17.006, Utilities Code, is amended to
  read as follows:
         Sec. 17.006.  PROTECTIONS FOR CUSTOMERS OF ELECTRIC
  COOPERATIVES. (a) An electric cooperative shall not be deemed to
  be a "service provider" or "billing agent" for purposes of Sections
  17.156(b) and (e), except that, for purposes of enforcing Section
  17.004(a-1), an electric cooperative is a "service provider" under
  Section 17.156(b).
         (b)  An [The] electric cooperative shall adopt, implement,
  and enforce rules that shall have the effect of accomplishing the
  objectives set out in Sections 17.004(a), (a-1), and (b) and
  Section 17.102. The board of directors of an [the] electric
  cooperative or its designee shall perform the dispute resolution
  function provided for by Section 17.157 for electric customers
  served by the electric cooperative within its certificated service
  area. With respect to electric customers served by an electric
  cooperative outside its certificated service area or otherwise
  served through others' distribution facilities, after the
  legislature authorizes retail competition, the provisions of this
  chapter as administered by the commission shall apply. Nothing in
  this chapter shall be deemed to apply to a wholesale customer of an
  electric cooperative.
         SECTION 4.  Section 41.004, Utilities Code, is amended to
  read as follows:
         Sec. 41.004.  JURISDICTION OF COMMISSION.  Except as
  specifically provided otherwise in this chapter, the commission has
  jurisdiction over electric cooperatives only as follows:
               (1)  to regulate wholesale transmission rates and
  service, including terms of access, to the extent provided in
  Subchapter A, Chapter 35;
               (2)  to regulate certification to the extent provided
  in Chapter 37;
               (3)  to establish a code of conduct as provided in
  Section 39.157(e) subject to Section 41.054;
               (4)  to establish terms and conditions, but not rates,
  for open access to distribution facilities for electric
  cooperatives providing customer choice, as provided in Section
  39.203; [and]
               (5)  to require reports of electric cooperative
  operations only to the extent necessary to:
                     (A)  ensure the public safety;
                     (B)  enable the commission to satisfy its
  responsibilities relating to electric cooperatives under this
  chapter;
                     (C)  enable the commission to determine the
  aggregate electric load and energy requirements in the state and
  the resources available to serve that load; or
                     (D)  enable the commission to determine
  information relating to market power as provided in Section 39.155;
  and
               (6)  to establish conditions under which customers may
  interconnect distributed renewable generation, as defined by
  Section 39.916.
         SECTION 5.  Section 41.055, Utilities Code, is amended to
  read as follows:
         Sec. 41.055.  JURISDICTION OF BOARD OF DIRECTORS.  A board
  of directors has exclusive jurisdiction to:
               (1)  set all terms of access, conditions, and rates
  applicable to services provided by the electric cooperative, except
  as provided by Sections 41.004, 41.054, and 41.056, including
  nondiscriminatory and comparable rates for distribution but
  excluding wholesale transmission rates, terms of access, and
  conditions for wholesale transmission service set by the commission
  under Subchapter A, Chapter 35, provided that the rates for
  distribution established by the electric cooperative shall be
  comparable to the distribution rates that apply to the electric
  cooperative and its subsidiaries;
               (2)  determine whether to unbundle any energy-related
  activities and, if the board of directors chooses to unbundle,
  whether to do so structurally or functionally;
               (3)  reasonably determine the amount of the electric
  cooperative's stranded investment;
               (4)  establish nondiscriminatory transition charges
  reasonably designed to recover the stranded investment over an
  appropriate period of time;
               (5)  determine the extent to which the electric
  cooperative will provide various customer services, including
  nonelectric services, or accept the services from other providers;
               (6)  manage and operate the electric cooperative's
  utility systems, including exercise of control over resource
  acquisition and any related expansion programs;
               (7)  establish and enforce service quality standards,
  reliability standards, and consumer safeguards designed to protect
  retail electric customers;
               (8)  determine whether a base rate reduction is
  appropriate for the electric cooperative;
               (9)  determine any other utility matters that the board
  of directors believes should be included;
               (10)  sell electric energy and capacity at wholesale,
  regardless of whether the electric cooperative participates in
  customer choice;
               (11)  determine the extent to which the electric
  cooperative offers energy efficiency programs and how the programs
  are administered by the electric cooperative; and
               (12)  make any other decisions affecting the electric
  cooperative's method of conducting business that are not
  inconsistent with the provisions of this chapter.
         SECTION 6.  This Act takes effect September 1, 2009.