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A BILL TO BE ENTITLED
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AN ACT
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relating to distributed generation of electric power. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.002, Utilities Code, is amended by |
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adding paragraph (4-1) and amending paragraph (10) to read as |
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follows: |
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(4-1) "Distributed generation facility" means a facility |
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for the generation of electricity with a capacity of not more than |
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5,000 kilowatts that is installed on the customer's side of the |
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meter. |
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(10) "Power generation company" means a person, including a |
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person who owns or operates a distributed generation facility, |
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that: |
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(A) generates electricity that is intended to be sold |
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at wholesale; |
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(B) does not own a transmission or distribution |
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facility in this state other than an essential interconnecting |
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facility, a facility not dedicated to public use, or a facility |
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otherwise excluded from the definition of "electric utility" under |
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this section; and |
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(C) does not have a certificated service area, |
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although its affiliated electric utility or transmission and |
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distribution utility may have a certificated service area. |
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SECTION 2. The title of Subchapter B of Chapter 35, |
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Utilities Code, is amended to read as follows: |
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SUBCHAPTER B. EXEMPT WHOLESALE GENERATORS, DISTRIBUTED GENERATION |
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FACILITIES, AND POWER MARKETERS |
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SECTION 3. Subchapter A of Chapter 35, Utilities Code, is |
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amended by adding Section 35.009, to read as follows: |
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Sec. 35.009. DISTRIBUTED GENERATION FACILITIES. |
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A person who owns or operates a distributed generation |
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facility may sell electric energy at wholesale. The electric |
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utility or retail electric provider providing retail service to the |
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facility shall purchase energy tendered to it by the distributed |
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generation facility owner or operator at a price that is consistent |
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with rules adopted by the commission. The rules adopted by the |
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commission shall provide for a reasonable price for the energy, |
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based on factors that the commission determines are relevant, |
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including the electric utility's or retail electric provider's |
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avoided cost of energy and the market value of energy. |
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SECTION 4. Section 39.351(c), Utilities Code, is amended to |
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read as follows: |
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(c) A power generation company may register any time after
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September 1, 2000. The commission may establish simplified filing |
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requirements for distributed generation facilities. |
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SECTION 5. Section 40.004(1), Utilities Code, is amended to |
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read as follows: |
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Except as specifically otherwise provided in this chapter, |
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the commission has jurisdiction over municipally owned utilities |
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only for the following purposes: |
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(1) to regulate wholesale transmission rates and service, |
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including terms of access, and the pricing of energy supplied by a |
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distributed generation facility to a municipal utility, to the |
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extent provided by Subchapter A, Chapter 35; |
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SECTION 6. Section 41.004(1), Utilities Code, is amended to |
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read as follows: |
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Except as specifically otherwise provided in this chapter, |
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the commission has jurisdiction over electric cooperatives only for |
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the following purposes: |
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(1) to regulate wholesale transmission rates and service, |
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including terms of access, and the pricing of energy supplied by a |
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distributed generation facility to an electric cooperative, to the |
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extent provided by Subchapter A, Chapter 35; |
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SECTION 7. This Act is effective September 1, 2009. |