| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to distributed generation of electric power. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 31.002, Utilities Code, is amended by |
|
|
adding Subdivision (4-a) and amending Subdivision (10) to read as |
|
|
follows: |
|
|
(4-a) "Distributed natural gas generation facility" |
|
|
means a facility installed on the customer's side of the meter that |
|
|
uses natural gas to generate not more than 2,000 kilowatts of |
|
|
electricity. |
|
|
(10) "Power generation company" means a person, |
|
|
including a person who owns or operates a distributed natural gas |
|
|
generation facility, that: |
|
|
(A) generates electricity that is intended to be |
|
|
sold at wholesale; |
|
|
(B) does not own a transmission or distribution |
|
|
facility in this state other than an essential interconnecting |
|
|
facility, a facility not dedicated to public use, or a facility |
|
|
otherwise excluded from the definition of "electric utility" under |
|
|
this section; and |
|
|
(C) does not have a certificated service area, |
|
|
although its affiliated electric utility or transmission and |
|
|
distribution utility may have a certificated service area. |
|
|
SECTION 2. The heading to Subchapter B, Chapter 35, |
|
|
Utilities Code, is amended to read as follows: |
|
|
SUBCHAPTER B. EXEMPT WHOLESALE GENERATORS, DISTRIBUTED NATURAL GAS |
|
|
GENERATION FACILITIES, AND POWER MARKETERS |
|
|
SECTION 3. Subchapter B, Chapter 35, Utilities Code, is |
|
|
amended by adding Section 35.036 to read as follows: |
|
|
Sec. 35.036. DISTRIBUTED NATURAL GAS GENERATION |
|
|
FACILITIES. (a) A person who owns or operates a distributed |
|
|
natural gas generation facility may sell electric power generated |
|
|
by the facility. The electric utility, electric cooperative, or |
|
|
retail electric provider that provides retail electricity service |
|
|
to the facility may purchase electric power tendered to it by the |
|
|
owner or operator of the facility at a value agreed to by the |
|
|
electric utility, electric cooperative, or retail electric |
|
|
provider and the owner or operator of the facility. The value of |
|
|
the electric power may be based wholly or partly on the clearing |
|
|
price of energy at the time of day and at the location at which the |
|
|
electric power is made available to the electric grid. |
|
|
(b) At the request of the owner or operator of the |
|
|
distributed natural gas generation facility, the electric utility |
|
|
or electric cooperative shall allow the owner or operator of the |
|
|
facility to use transmission and distribution facilities to |
|
|
transmit the electric power to another entity that is acceptable to |
|
|
the owner or operator in accordance with commission rules or a |
|
|
tariff approved by the Federal Energy Regulatory Commission. |
|
|
(c) Subject to Subsections (e) and (f), if the owner or |
|
|
operator of a distributed natural gas generation facility requests |
|
|
to be interconnected to an electric utility or electric cooperative |
|
|
that does not have a transmission tariff approved by the Federal |
|
|
Energy Regulatory Commission, the electric utility or electric |
|
|
cooperative may recover from the owner or operator of the facility |
|
|
the reasonable costs of interconnecting the facility with the |
|
|
electric utility or electric cooperative that are necessary for and |
|
|
directly attributable to the interconnection of the facility. |
|
|
(d) Subject to Subsections (e) and (f), an electric utility |
|
|
or electric cooperative may recover from the owner or operator of a |
|
|
distributed natural gas generation facility the reasonable costs of |
|
|
electric facility upgrades and improvements if: |
|
|
(1) the rated capacity of the distributed natural gas |
|
|
generation facility is greater than the rated capacity of the |
|
|
electric utility or electric cooperative; and |
|
|
(2) the costs are necessary for and directly |
|
|
attributable to accommodating the distributed natural gas |
|
|
generation facility's capacity. |
|
|
(e) An electric utility or electric cooperative may recover |
|
|
costs under Subsection (c) or (d) only if: |
|
|
(1) the electric utility or electric cooperative |
|
|
provides a written good faith cost estimate to the owner or operator |
|
|
of the distributed natural gas generation facility; and |
|
|
(2) the owner or operator of the distributed natural |
|
|
gas generation facility agrees in writing to pay the reasonable and |
|
|
necessary costs of interconnection or capacity accommodation |
|
|
requested by the owner or operator and described in the estimate |
|
|
before the electric utility or electric cooperative incurs the |
|
|
costs. |
|
|
(f) If an electric utility or electric cooperative seeks to |
|
|
recover from the owner or operator of a distributed natural gas |
|
|
generation facility an amount that exceeds the amount in the |
|
|
estimate provided under Subsection (e) by more than five percent, |
|
|
the commission shall resolve the dispute at the request of the owner |
|
|
or operator of the facility. |
|
|
(g) A distributed natural gas generation facility must |
|
|
comply with emissions limitations established by the Texas |
|
|
Commission on Environmental Quality for a standard emissions permit |
|
|
for an electric generation facility unit installed after January 1, |
|
|
1995. |
|
|
(h) This section does not require an electric cooperative to |
|
|
transmit electricity to a retail point of delivery in the |
|
|
certificated service area of the electric cooperative if the |
|
|
electric cooperative has not adopted customer choice. |
|
|
SECTION 4. Subsection (c), Section 39.351, Utilities Code, |
|
|
is amended to read as follows: |
|
|
(c) The commission may establish simplified filing |
|
|
requirements for distributed natural gas generation facilities [A
|
|
|
power generation company may register any time after September 1,
|
|
|
2000]. |
|
|
SECTION 5. This Act takes effect September 1, 2011. |
|
|
|
|
|
* * * * * |