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A BILL TO BE ENTITLED
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AN ACT
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relating to the compensation of a distributed renewable generation |
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owner in certain areas outside of ERCOT. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.554, Utilities Code, is amended by |
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amending Subsection (f) and adding Subsection (i) to read as |
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follows: |
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(f) Unless the commission approves an alternative method |
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for compensating a distributed renewable generation owner for |
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electricity generated by distributed renewable generation or a |
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qualifying facility, for [For] a distributed renewable generation |
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owner that chooses interconnection through a single meter under |
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Subsection (e): |
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(1) the amount of electricity the owner generates |
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through distributed renewable generation or a qualifying facility |
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for a given billing period offsets the owner's consumption for that |
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billing period; and |
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(2) any electricity the owner generates through |
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distributed renewable generation or a qualifying facility that |
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exceeds the owner's consumption for a given billing period shall be |
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credited to the owner under Subsection (g). |
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(i) Before approving an alternative method for compensating |
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a distributed renewable generation owner for electricity generated |
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by distributed renewable generation or a qualifying facility, the |
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commission shall require the electric utility to conduct and submit |
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to the commission a comprehensive cost-benefit analysis using |
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established best practices to justify the rates of compensation and |
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any associated fees. The commission must consider the |
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comprehensive cost-benefit analysis before approving alternative |
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rates for compensating distributed renewable generation owners or |
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the continuation of net metering, including any rates or fees that |
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apply only to distributed renewable generation owners and reflect |
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the value provided by the distributed renewable generation or |
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qualifying facility. |
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SECTION 2. This Act takes effect September 1, 2026. |