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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale of electric energy produced by distributed |
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renewable generation owners. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 31.002(6), Utilities Code, is amended to |
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read as follows: |
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(6) "Electric utility" means a person or river |
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authority that owns or operates for compensation in this state |
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equipment or facilities to produce, generate, transmit, |
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distribute, sell, or furnish electricity in this state. The term |
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includes a lessee, trustee, or receiver of an electric utility and a |
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recreational vehicle park owner who does not comply with Subchapter |
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C, Chapter 184, with regard to the metered sale of electricity at |
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the recreational vehicle park. The term does not include: |
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(A) a municipal corporation; |
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(B) a qualifying facility; |
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(C) a power generation company; |
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(D) an exempt wholesale generator; |
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(E) a power marketer; |
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(F) a corporation described by Section 32.053 to |
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the extent the corporation sells electricity exclusively at |
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wholesale and not to the ultimate consumer; |
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(G) an electric cooperative; |
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(H) a retail electric provider; |
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(I) this state or an agency of this state; or |
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(J) a person not otherwise an electric utility |
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who: |
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(i) furnishes an electric service or |
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commodity only to itself, its employees, or its tenants as an |
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incident of employment or tenancy, if that service or commodity is |
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not resold to or used by others; |
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(ii) owns or operates in this state |
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equipment or facilities to produce, generate, transmit, |
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distribute, sell, or furnish electric energy to an electric |
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utility, if the equipment or facilities are used primarily to |
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produce and generate electric energy for consumption by that |
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person; [or] |
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(iii) owns or operates in this state a |
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recreational vehicle park that provides metered electric service in |
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accordance with Subchapter C, Chapter 184; or |
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(iv) is a distributed renewable generation |
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owner as defined by Section 39.916. |
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SECTION 2. Section 39.914(a), Utilities Code, is amended to |
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read as follows: |
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(a) After December 1, 2009, on the request of an independent |
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school district, an [An] electric utility or retail electric |
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provider shall provide for net metering and contract with the [an
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independent school] district so that under the contract: |
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(1) surplus electricity produced by a school |
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building's solar electric generation panels is made available for |
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sale to the electric transmission grid and distribution system; and |
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(2) the retail [net] value of that surplus electricity |
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is credited to the district. |
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SECTION 3. Section 39.916(a)(1), Utilities Code, is amended |
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to read as follows: |
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(1) "Distributed renewable generation" means electric |
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generation with a capacity of not more than 2,000 kilowatts |
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provided by a renewable energy technology, as defined by Section |
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39.904, that is installed on a retail electric customer's side of |
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the meter, including electric generation by solar generating |
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equipment connected to the customer's side of the meter but that is |
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located elsewhere on the same property or is located on contiguous |
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property or on property separated by an easement, a public road, or |
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a right-of-way for transportation or utility purposes. |
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SECTION 4. Section 39.916, Utilities Code, is amended by |
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adding Subsection (k) to read as follows: |
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(k) The commission by rule shall require a retail electric |
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provider that offers to purchase excess electricity produced by |
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distributed renewable generation to include line items on each bill |
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of a customer who is a distributed renewable generation owner that |
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inform the customer of: |
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(1) the capacity of the customer's distributed |
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renewable generation system; |
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(2) the amount of excess electricity produced by the |
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customer's distributed renewable generation system purchased by |
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the retail electric provider, in terms of kilowatt hours; and |
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(3) the average price the retail electric utility paid |
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for each kilowatt hour of the excess electricity produced by the |
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customer's distributed renewable generation system. |
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SECTION 5. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Sections 39.926 and 39.927 to read as follows: |
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Sec. 39.926. INFORMATION ON INTERNET REGARDING PURCHASE OF |
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EXCESS ELECTRICITY PRODUCED BY DISTRIBUTED RENEWABLE GENERATION. |
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(a) On the Internet website found at http://www.powertochoose.org, |
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the commission shall provide for access to easily comparable |
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information regarding retail electric providers' offers to |
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distributed renewable generation owners for their surplus |
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electricity, including information regarding contract terms and |
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whether the retail electric provider makes no offer for surplus |
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electricity. |
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(b) On the Internet website found at |
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http://www.powertochoose.org, the commission shall provide for |
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access to easily comparable information regarding offers of |
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renewable energy credit marketers to distributed renewable |
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generation owners. |
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(c) The commission by rule shall require transmission and |
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distribution utilities and retail electric providers to provide on |
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publicly accessible Internet websites information on purchase |
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price offers per kilowatt hour for excess electricity produced by |
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distributed renewable generation and information instructing |
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customers with distributed renewable generation on how to request |
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and obtain the purchase rates offered. |
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Sec. 39.927. VIABILITY OF MARKET FOR DISTRIBUTED RENEWABLE |
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GENERATION EXCESS ENERGY. (a) In this section: |
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(1) "Distributed renewable generation" has the |
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meaning assigned by Section 39.916. |
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(2) "Excess energy" means electric energy produced by |
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a customer's distributed renewable generation installed on the |
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customer's side of the meter and made available for sale to the |
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electric transmission grid and distribution system. |
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(b) On or before December 1, 2010, the commission by rule |
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shall establish criteria for determining whether there is a viable |
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market in ERCOT for the sale of excess energy. To be considered |
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viable, the market must provide for: |
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(1) each customer in ERCOT to have available at least |
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one offer for excess energy at a rate equal to at least 80 percent of |
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the retail price for energy; and |
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(2) each customer in ERCOT to have available at least |
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two different offers for excess energy in addition to an offer |
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described by Subdivision (1). |
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(c) The commission shall require the independent |
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organization certified under Section 39.151 to monitor the |
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development and implementation of a competitive market in ERCOT for |
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the sale of excess energy. The rules must provide a mechanism for |
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the organization to monitor retail electric providers' offers to |
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purchase excess energy and rates of customers' sales of excess |
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energy. |
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(d) Not later than September 1, 2010, the organization shall |
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publish and provide to the commission a report that identifies the |
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rates of excess energy market participation by retail electric |
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providers and customers with distributed renewable generation in |
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ERCOT. The report must include: |
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(1) the organization's assessment of the development |
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of the market in ERCOT for the sale of excess energy and whether |
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that market is viable according to the criteria adopted under |
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Subsection (b); |
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(2) the rate of adoption by customers in ERCOT of |
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distributed renewable generation by solar energy technologies; and |
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(3) the following information regarding each retail |
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electric provider in ERCOT: |
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(A) whether the provider offers to purchase |
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excess energy; |
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(B) for a provider that offers to purchase excess |
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energy, the provider's: |
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(i) average ratio of retail prices to |
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excess energy purchase prices for kilowatt hour units; |
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(ii) average monthly purchases; and |
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(iii) average purchases for the year for |
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each customer class; and |
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(C) the percentage and number of the provider's |
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customers who have adopted distributed renewable generation by |
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solar energy technologies. |
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(e) If the independent organization's report under |
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Subsection (d) concludes that the market for the sale of excess |
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energy is not viable according to the criteria adopted under |
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Subsection (b), not later than December 1, 2010, the commission by |
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rule shall require all retail electric providers to offer net |
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metering services and advanced meter information networks to all |
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customers in all customer classes. |
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(f) Subsections (a)-(d) and this subsection expire |
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September 2, 2011. |
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SECTION 6. Section 39.351, Utilities Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) Notwithstanding Subsection (a), a distributed renewable |
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generation owner as defined by Section 39.916 may generate |
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electricity without registering as a power generation company. |
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SECTION 7. This Act takes effect September 1, 2009. |