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Texas Committee Substitute Bill On Consumer Protections For Distributed Generation Removes Problematic Language Prohibiting Retail Provider Early Termination Fees, And Other REP Mandates
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The Texas Senate Business & Commerce Committee has reported favorably a substitute for SB 2066, which would establish certain disclosure requirements for distributed renewable generation, for residential and small commercial customers
Most notably, the substitute omits language from the introduced version of the bill which would have prohibited retail electric provider early termination fees in certain circumstances.
Specifically, as exclusively first reported by RetailEnergyX.com (see story here about a companion bill), the introduced version of SB 2066 had provided that, "An electric utility or a retail electric provider may
not charge a residential or small commercial customer a fee solely
because the customer elects to discontinue service from the utility
or provider."
The committee substitute omits this language
Furthermore, the committee substitute omits language which had established mandates for REPs concerning the offerings to customers with distributed generation, with such prior language stating that REPs could not require customers with distributed generation to take a specific product which only applies to customers with distributed generation
Specifically, the now-struck language had stated, "Except for a charge to recover a cost described by
Subsection (e) [interconnection fee], an electric utility or a retail electric provider
may not impose a rate or charge on a residential or small commercial
customer or require a residential or small commercial customer to
take service under a tariff or service plan that applies only to
customers who have installed on-site distributed generation or
energy storage resources."
Concerning disclosures for distributed renewable generation, the committee substitute requires that a seller or lessor who enters into a purchase, lease, or power
purchase agreement with a residential or small commercial customer
for the operation of a distributed renewable generation resource
shall provide to the customer in writing, among other things:
(3) the cost of all equipment to be installed;
(4) a detailed accounting of fees associated with the
installation or operation of the generation resource;
(5) representations, if any, made as part of the
agreement regarding the expected operational performance and
financial performance of the generation resource; and
"Small commercial customer" means a commercial customer having a peak demand
of 1,000 kilowatts or less
Lease agreements have the additional disclosure requirements:
(1) the term and rate of the lease, including any
payment escalators or other terms that affect the customer's
payments; and
(2) a statement of whether the lease and any
applicable warranty or maintenance agreement is transferable to a
subsequent purchaser of the property where the distributed
renewable generation resource is installed.
PPAs have the additional disclosure requirements:
• the term and rate of the power purchase agreement,
including any payment escalators or other terms that affect the
customer's payments; and
• whether the power purchase agreement and any
applicable warranty or maintenance agreement is transferable to a
subsequent purchaser of the property where the distributed
renewable generation resource is installed.
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Bill Sets Disclosures For Distributed Generation Sales, Leases, PPAs
April 26, 2019
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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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