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A BILL TO BE ENTITLED
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AN ACT
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relating to compensation for excess electricity generated by a |
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retail electric customer's on-site generation. |
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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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(K) a distributed renewable generation owner, as |
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defined by Section 39.916. |
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SECTION 2. Section 39.002, Utilities Code, is amended to |
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read as follows: |
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Sec. 39.002. APPLICABILITY. Except as provided by this |
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section, this [This] chapter, other than Sections 39.155, |
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39.157(e), 39.203, 39.903, 39.904, 39.9051, 39.9052, and |
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39.914(e), does not apply to a municipally owned utility or to an |
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electric cooperative. Sections 39.157(e), 39.203, and 39.904[,
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however,] apply only to a municipally owned utility or an electric |
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cooperative that is offering customer choice. Section 39.916 |
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applies to an electric cooperative. Section 39.9161 applies to a |
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municipally owned utility. If there is a conflict between the |
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specific provisions of this chapter and any other provisions of |
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this title, except for Chapters 40 and 41, the provisions of this |
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chapter control. |
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SECTION 3. The heading to Section 39.916, Utilities Code, |
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is amended to read as follows: |
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Sec. 39.916. [INTERCONNECTION OF] DISTRIBUTED RENEWABLE |
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GENERATION. |
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SECTION 4. Section 39.916(a), Utilities Code, is amended by |
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adding Subdivision (4) to read as follows: |
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(4) "Surplus electricity" means electricity generated |
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by distributed renewable generation that is not consumed at the |
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place the distributed renewable generation is installed and that |
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flows onto the electric distribution system. |
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SECTION 5. Section 39.916, Utilities Code, is amended by |
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amending Subsections (b), (c), (e), (f), and (j) and adding |
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Subsections (d-1), (l), (m), (n), (o), and (p) to read as follows: |
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(b) A transmission and distribution utility, electric |
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cooperative, or electric utility shall allow interconnection if: |
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(1) the distributed renewable generation to be |
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interconnected has a five-year warranty against breakdown or undue |
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degradation; and |
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(2) the rated capacity of the distributed renewable |
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generation does not exceed the transmission and distribution |
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utility, electric cooperative, or electric utility service |
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capacity. |
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(c) A customer may request interconnection by filing an |
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application for interconnection with the transmission and |
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distribution utility, electric cooperative, or electric |
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utility. Procedures of a transmission and distribution utility, |
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electric cooperative, or electric utility for the submission and |
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processing of a customer's application for interconnection shall be |
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consistent with rules adopted by the commission regarding |
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interconnection. |
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(d-1) The sale, rental, lease, or maintenance of |
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distributed renewable generation equipment, or the sale of electric |
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energy produced by distributed renewable generation to the customer |
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on whose side of the meter the distributed renewable generation is |
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installed, does not constitute provision of retail electric |
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service. |
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(e) A transmission and distribution utility, electric |
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cooperative, electric utility, or retail electric provider may not |
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require a distributed renewable generation owner whose distributed |
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renewable generation meets the standards established by rule under |
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Subsection (d) to purchase an amount, type, or classification of |
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liability insurance the distributed renewable generation owner |
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would not have in the absence of the distributed renewable |
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generation. |
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(f) A transmission and distribution utility, electric |
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cooperative, or electric utility shall make available to a |
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distributed renewable generation owner for purposes of this section |
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metering required for services provided under this section, |
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including separate meters that measure the load and generator |
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output or a single meter capable of measuring in-flow and out-flow |
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at the point of common coupling meter point. The distributed |
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renewable generation owner must pay the differential cost of the |
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metering unless the meters are provided at no additional cost. |
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Except as provided by this section, Section 39.107 applies to |
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metering under this section. |
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(j) A [For] distributed renewable generation owner who |
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chooses to sell the owner's surplus electricity in an area [owners
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in areas] in which customer choice has been introduced[, the
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distributed renewable generation owner] must sell the owner's |
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surplus electricity produced to the retail electric provider that |
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serves the [distributed renewable generation] owner's load. A |
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distributed renewable generation owner who chooses to sell the |
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owner's surplus electricity in an area in which customer choice has |
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not been introduced must sell the owner's surplus electricity to |
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the electric utility or electric cooperative that serves the |
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owner's load [at a value agreed to between the distributed
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renewable generation owner and the provider that serves the owner's
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load which may include, but is not limited to, an agreed value based
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on the clearing price of energy at the time of day that the
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electricity is made available to the grid or it may be a credit
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applied to an account during a billing period that may be carried
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over to subsequent billing periods until the credit has been
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redeemed]. The independent organization identified in Section |
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39.151 shall develop procedures so that the amount of electricity |
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purchased from a distributed renewable generation owner under this |
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section is accounted for in settling the total load served by the |
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provider that serves that owner's load [by January 1, 2009]. A |
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distributed renewable generation owner requesting [net] metering |
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services for purposes of this section must have metering devices |
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capable of providing measurements consistent with the independent |
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organization's settlement requirements. |
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(l) In areas in which customer choice has been introduced, a |
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retail electric provider shall purchase surplus electricity at a |
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fair market value determined using a price that provides a periodic |
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proxy, using a period of a month or longer, for the load zone |
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real-time market clearing price, unless the provider chooses to use |
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a fair market value by an alternative method authorized by this |
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subsection. A retail electric provider may choose to determine the |
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fair market value for purchasing surplus electricity by the load |
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zone real-time market clearing price at the time of day the surplus |
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electricity is made available to the grid or by the simple average, |
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during the period for which the surplus electricity being purchased |
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was generated, of the load zone real-time market clearing price for |
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energy at the time of day specified in the ERCOT protocols for the |
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applicable type of distributed renewable generation for load |
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reduction at locations without interval data meters. A retail |
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electric provider must use the same method of determining fair |
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market value for all distributed renewable generation owners |
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eligible to be compensated for purchased surplus electricity. A |
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retail electric provider that chooses to determine the fair market |
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value by an alternative method at any time may not after that date |
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use the periodic proxy method described by this subsection. A |
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distributed renewable generation owner may file a written complaint |
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with the commission for a violation of this subsection or |
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Subsection (m). |
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(m) A retail electric provider that purchases surplus |
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electricity from a distributed renewable generation owner under |
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Subsection (l) must compensate the distributed renewable |
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generation owner by making a payment not less frequently than once |
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each quarter or by applying a credit to an account the credit |
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balance of which may be carried forward until the credit has been |
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redeemed. The retail electric provider shall inform the |
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distributed renewable generation owner of the amount of surplus |
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electricity purchased, measured in kilowatt hours, and the price |
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paid for the surplus electricity purchased. |
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(n) In areas in which customer choice has not been |
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introduced, an electric utility or electric cooperative shall |
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purchase surplus electricity at a value that is at least equal to |
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the avoided cost of the electric utility or electric cooperative, |
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as applicable. A distributed renewable generation owner may file a |
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written complaint with the commission for a violation of this |
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subsection or Subsection (o). |
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(o) An electric utility or electric cooperative that |
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purchases surplus electricity from a distributed renewable |
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generation owner under Subsection (n) must compensate the |
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distributed renewable generation owner by making a payment made not |
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less frequently than once each quarter or by applying a credit to an |
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account the credit balance of which may be carried forward until the |
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credit has been redeemed. The electric utility or electric |
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cooperative shall inform the distributed renewable generation |
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owner of the amount of surplus electricity purchased, measured in |
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kilowatt hours, and the price paid for the surplus electricity |
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purchased. |
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(p) The commission by rule may establish standards |
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distributed renewable generation must meet to be eligible for |
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compensation under this section, including interconnection |
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standards and standards for the generating equipment. The |
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standards must be designed so that small-scale distributed |
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renewable generation at residential addresses is eligible for |
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compensation. A distributed renewable generation owner is |
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qualified to be compensated for surplus electricity purchased under |
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this section only if: |
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(1) the distributed renewable generation is: |
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(A) rated to produce an amount of electricity |
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that is less than or equal to the amount of electricity the retail |
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electric customer for whom the distributed renewable generation is |
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installed is reasonably expected to consume; and |
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(B) installed on the customer's side of the meter |
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for a residential retail electric customer or a retail electric |
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customer that is a public school or a facility owned by a religious |
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organization and used primarily as a place of religious worship, |
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such as a church, synagogue, or mosque; and |
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(2) the generating capacity of the distributed |
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renewable generation does not exceed: |
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(A) 10 kilowatts for a residential retail |
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electric customer; |
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(B) 150 kilowatts for a retail electric customer |
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at a facility owned by a religious organization and used primarily |
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as a place of religious worship, such as a church, synagogue, or |
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mosque; or |
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(C) 250 kilowatts for a retail electric customer |
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that is a public school. |
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SECTION 6. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Section 39.9161 to read as follows: |
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Sec. 39.9161. DISTRIBUTED RENEWABLE GENERATION WITH |
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MUNICIPALLY OWNED UTILITIES. (a) In this section, "distributed |
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renewable generation," "distributed renewable generation owner," |
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and "interconnection" have the meanings assigned by Section 39.916. |
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(b) A municipally owned utility shall: |
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(1) allow interconnection and metering to account for |
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electricity produced by distributed renewable generation owners; |
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and |
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(2) provide the utility's customers access to |
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interconnection and metering of distributed renewable generation. |
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(c) The governing body of a municipally owned utility shall |
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provide oversight and adopt rates, rules, and procedures to allow |
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interconnection and provide metering consistent with the goals |
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established by Section 39.916. This subsection does not prevent the |
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governing body of a municipally owned utility from adopting rates, |
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rules, and procedures for interconnection and metering that are |
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more favorable to a distributed renewable generation owner than |
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those established by any other law or rule of the commission. |
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(d) If a municipally owned utility implements customer |
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choice under Chapter 40, the commission: |
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(1) has jurisdiction over the municipally owned |
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utility's distributed renewable generation interconnection and |
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metering; and |
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(2) by rule shall establish minimum standards and |
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procedures for interconnection and metering by the municipally |
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owned utility. |
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(e) A municipally owned utility that had retail sales of |
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500,000 megawatt hours or more in 2012 shall file the utility's |
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interconnection and metering rates, rules, and procedures with the |
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State Energy Conservation Office not later than January 1, 2014. |
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The municipally owned utility shall make timely updates to the |
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utility's filed rates, rules, and procedures. |
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(f) A municipally owned utility that has adopted rules and |
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procedures related to interconnection and metering shall make |
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available, on a publicly accessible Internet website or at the |
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customary location for publicly posted notices: |
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(1) information on the purchase price offered per |
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kilowatt hour for surplus electricity produced by distributed |
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renewable generation; and |
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(2) information instructing customers with |
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distributed renewable generation how to request and obtain the |
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purchase rates offered. |
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(g) The governing body of a municipally owned utility that |
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had retail sales of less than 500,000 megawatt hours in 2012 shall |
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provide oversight and adopt rules and procedures related to |
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interconnection and metering of distributed renewable generation |
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systems with a generating capacity considered appropriate by the |
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municipally owned utility on or before the 120th day after the date |
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the governing body receives a bona fide request for |
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interconnection. |
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SECTION 7. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Section 39.926 to read as follows: |
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Sec. 39.926. INFORMATION ON INTERNET REGARDING PURCHASE OF |
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SURPLUS ELECTRICITY PRODUCED BY DISTRIBUTED RENEWABLE GENERATION. |
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On the Internet website found at http://www.powertochoose.org, the |
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commission shall provide for access to easily comparable |
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information regarding retail electric providers' offers to |
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residential distributed renewable generation owners for their |
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surplus electricity, including information regarding their |
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contract terms, for each retail electric provider using that |
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website. |
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SECTION 8. Section 39.916(h), Utilities Code, is repealed. |
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SECTION 9. This Act takes effect January 1, 2014. |