81R10363 TJS-F
 
  By: Lucio III H.B. No. 4641
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the deployment of advanced electric distribution
  networks.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 39, Utilities Code, is
  amended by adding Section 39.1075 to read as follows:
         Sec. 39.1075.  ENHANCED ELECTRIC DISTRIBUTION NETWORKS;
  PILOT PROGRAM. (a)  In this section, "enhanced electric
  distribution network" means a two-way communication system and
  associated equipment and software that provides real-time
  monitoring, diagnostics, and control of electric distribution
  lines and other components for an electric delivery system,
  designed to improve the efficiency and reliability of the electric
  delivery system and to facilitate storm recovery.
         (b)  Not later than December 1, 2009, each electric utility
  shall file with the commission a plan to establish a pilot program
  to study the cost-effectiveness of deploying an enhanced electric
  distribution network. The commission shall approve or modify a plan
  filed under this section not later than May 1, 2010.
         (c)  A plan filed with the commission under this section must
  include a proposal for the treatment of incremental program costs.
  Subject to commission approval, the incremental program costs are
  recoverable as reasonable and necessary costs under Section
  39.107(h).
         (d)  At a minimum, a pilot program under this section must:
               (1)  use advanced technology to operate an integrated
  grid network communication system;
               (2)  operate in a specific geographic area; and
               (3)  remain in operation for at least six months.
         (e)  Not later than January 1, 2011, each electric utility
  shall file with the commission a report on the results of the
  electric utility's pilot program.
         (f)  This section does not require an electric utility to
  conduct or complete a pilot program before implementing a permanent
  or long-term enhanced electric distribution network project.
         (g)  To the extent practicable, an electric utility shall
  obtain federal funds to support a pilot program under this section,
  including funds from the American Recovery and Reinvestment Act of
  2009 (Pub. L. No. 111-5) or the Energy Independence and Security Act
  of 2007 (Pub. L. No. 110-140).
         (h)  This section expires September 2, 2011.
         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.