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A BILL TO BE ENTITLED
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AN ACT
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relating to the satisfaction of annual renewable energy |
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requirements by certain utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.904, Utilities Code, is amended by |
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adding Subsection (c-1) to read as follows: |
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(c-1) Notwithstanding any other law, the commission by rule |
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shall require an investor-owned electric utility that was not |
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affiliated with ERCOT and was operating solely outside of ERCOT in |
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areas of this state that were included in the Western Electricity |
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Coordinating Council on January 1, 2013, to satisfy, not later than |
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December 31, 2015, at least 15 percent of the annual renewable |
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energy requirement under Subsection (c) through capacity or |
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purchases of renewable energy credits that are physically metered |
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and verified in the utility's Texas or New Mexico service area. The |
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electric utility must satisfy at least 20 percent of that energy |
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requirement in that manner by December 31, 2018, and at least 35 |
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percent by December 31, 2021. These requirements are subject to the |
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following conditions: |
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(1) the electric utility may not be required to |
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satisfy more than the specified percentages through capacity or |
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purchases of renewable energy credits that are physically metered |
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and verified in the utility's Texas or New Mexico service area; |
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(2) the maximum amount per renewable energy credit |
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that the electric utility is required to incur in satisfaction of |
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this subsection is the lesser of $50 or five times the average |
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amount the electric utility paid for the purchase of a renewable |
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energy credit for compliance in the previous year, and to the extent |
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renewable energy credits cannot be obtained for that price, the |
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electric utility is relieved of any further obligations under this |
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subsection for that year; and |
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(3) the commission shall count toward the satisfaction |
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of the obligations of this section any capacity or purchases of |
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renewable energy credits that: |
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(A) are physically metered and verified in the |
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utility's New Mexico service area; and |
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(B) are registered with a renewable energy |
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generation information system that is designed to create and track |
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ownership of renewable energy credits and that, through the use of |
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independently audited generation data, verifies the generation and |
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delivery of electricity associated with each renewable energy |
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credit and protects against counting the same renewable energy |
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credit more than once. |
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SECTION 2. The Public Utility Commission of Texas shall |
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adopt rules to implement Subsection (c-1), Section 39.904, |
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Utilities Code, as added by this Act, as soon as practicable |
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following the effective date of this Act, but not later than August |
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31, 2014. |
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SECTION 3. This Act takes effect January 1, 2014. |
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