Bill Text: TX HB4287 | 2023-2024 | 88th Legislature | Comm Sub

Texas House Bill 4287 (Prior Session Legislation)

Bill Title: Relating to the use of customer-sited distributed generation facilities owned by certain non-ERCOT electric utilities.

Spectrum: Moderate Partisan Bill (Republican 8-1)

Status: (Introduced - Dead) 2023-05-05 - Laid on the table subject to call [HB4287 Detail]

Download: Texas-2023-HB4287-Comm_Sub.html

	88R19092 CXP-F

	By: Metcalf, Cunningham, Manuel, Bailes,	H.B. No. 4287
	Ashby, et al.

	Substitute the following for H.B. No. 4287:

	By: Slawson	C.S.H.B. No. 4287



	A BILL TO BE ENTITLED
	AN ACT
	relating to the use of customer-sited distributed generation
	facilities owned by certain non-ERCOT electric utilities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter E, Chapter 36, Utilities Code, is
	amended by adding Section 36.215 to read as follows:
	Sec. 36.215. RECOVERY OF INVESTMENT IN DISTRIBUTED
	GENERATION AND RATES FOR BACKUP ELECTRIC SERVICE FOR CERTAIN
	NON-ERCOT UTILITIES. (a) In this section:
	(1) "Customer-sited distributed generation facility"
	means a dispatchable generation facility that is installed on the
	electric utility's side of the retail meter and owned and operated
	by the electric utility:
	(A) with a nameplate capacity of not more than 10
	megawatts;
	(B) that is capable of generating and providing
	backup electric service to a customer during a power grid outage;
	and
	(C) sited at or adjacent to the customer's
	premises.
	(2) "Host customer" means a customer receiving backup
	electric service under this section.
	(b) This section applies only to an electric utility that
	operates solely outside of ERCOT in areas of this state included in
	the Southeastern Electric Reliability Council.
	(c) An electric utility may provide backup electric service
	to a nonresidential retail customer through a customer-sited
	distributed generation facility.
	(d) The commission, on the petition of an electric utility,
	shall establish just and reasonable rates for backup electric
	service supplied using a customer-sited distributed generation
	facility, consistent with this chapter, provided that costs are
	allocated as follows:
	(1) if the facility is capable of directly supplying
	energy to the distribution system or of disconnecting the host
	customer from the distribution system when not being used to supply
	backup electric service to the host customer and thereby reducing
	system load, the commission shall allocate the cost of owning and
	operating the facility between the host customer and the electric
	utility's broader customer base, including an allocation of any
	margins from energy sales attributable to the facility to the host
	customer in reasonable proportion to the allocation of nonfuel
	costs as provided by Subdivision (2); and
	(2) the allocation of nonfuel costs to the host
	customer must be based on the cost to purchase, install,
	interconnect, own, operate, and maintain the facility that is above
	the electric utility's levelized avoided cost to install, own,
	operate, and maintain a single-cycle combustion turbine, on a per
	kilowatt basis, grossed up for avoided line losses based on the
	utility's transmission and distribution line loss factors last
	approved by the commission.
	(e) In a rate proceeding in which an electric utility seeks
	to recover the full cost of the utility's investment in a
	customer-sited distributed generation facility that is
	interconnected to the utility's distribution system, the cost of
	the facility and backup electric service revenues must be allocated
	among customer classes on the same basis used to allocate the
	utility's distribution-level investments.
	SECTION 2. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2023.