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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of distributed generation of |
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electricity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Section 39.917 to read as follows: |
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Sec. 39.917. REGULATION OF CERTAIN DISTRIBUTED GENERATION. |
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(a) In this section: |
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(1) "Distributed generation" means electric |
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generation with a capacity of not more than 2,000 kilowatts that is |
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installed on a retail electric customer's side of the meter. |
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(2) "Distributed generation owner" means: |
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(A) the owner of distributed generation; or |
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(B) a retail electric customer who contracts with |
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another person to finance, install, or maintain distributed |
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generation on the customer's side of the meter, regardless of |
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whether the customer takes ownership of the installed distributed |
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generation. |
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(b) If, at the time distributed generation is installed on a |
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retail electric customer's side of the meter, the estimated annual |
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amount of electric energy to be produced by the distributed |
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generation is less than or equal to the customer's estimated annual |
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electric energy consumption, the commission may not consider the |
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distributed generation owner to be a power generation company or |
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require the distributed generation owner to register as a power |
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generation company. |
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(c) The commission may not consider a person who contracts |
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with a retail electric customer to finance, install, or maintain |
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distributed generation on the customer's side of the meter, as |
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described by Subsection(a)(2), to be an electric utility, a power |
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generation company, or a retail electric provider. |
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(d) The commission by rule shall provide for the |
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interconnection of distributed generation, including the sale of |
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surplus electricity generated by distributed generation |
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facilities. |
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SECTION 2. (a) The Public Utility Commission of Texas |
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shall conduct a study to determine the effect of net metering and to |
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assess and compare the effect of alternative: |
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(1) methodologies of determining a fair market value |
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or greater price for surplus electricity generated by distributed |
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renewable generation; and |
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(2) methods of compensating an owner for surplus |
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electricity generated by distributed renewable generation, |
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including a method by which a credit is applied to the owner's |
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account that may be redeemed on the owner's current or subsequent |
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bill. |
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(b) The methodologies assessed and compared in the study |
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conducted under Subsection (a)(1) must include methodologies by |
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which fair market value is based on: |
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(1) the local market clearing price for energy at the |
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time of day the surplus electricity is made available to the grid or |
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a monthly or longer proxy for the market clearing price; or |
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(2) avoided capacity costs, avoided transmission and |
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distribution costs, avoided system losses, avoided ancillary |
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service costs, hedging value, market price impacts, effects on |
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reliability, avoided air emissions, or any other factor effected by |
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the use of surplus electricity generated by distributed renewable |
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generation. |
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(c) The commission shall report its findings from the study |
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conducted under this section to the legislature not later than |
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September 1, 2012. |
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SECTION 3. This Act takes effect September 1, 2011. |