TXU Seeks Assurance DG Interconnection Rule Will Not Infringe on REP's Disconnection, Service Rights

Commenting on proposed distributed generation interconnection agreement rules before the Public Utility Commission of Texas, TXU Energy sought assurances that any rule will not infringe on retail electric providers' disconnection rights, and that the rule preserves the requirement that all retail electric service occur through REPs

Should the Commission decide to move forward with modifications to the Agreement for Interconnection and Parallel Operation of Distributed Generation (IA) consistent with the published proposed rule, TXU Energy requested that the Commission include modifications to the IA to clarify two issues that were raised by the joint utilities earlier in the proceeding:

1) Enforcement of the IA may not trump a retail electric provider's (REP's) right to disconnect an end use customer (EUC) for non-payment; and

2) Enforcement of the IA by a non-EUC party may not result in a premise receiving service without a REP.

"In the first scenario, Joint Utilities raised concerns that a third party signatory to the IA might bring a complaint against the EUC (and by logical extension, the utility or REP) for failure to keep the DG facility interconnected if the EUC's electric service is disconnected at the REP's request for non-payment pursuant to 16 Texas Admin. Code (TAC) § 25.483," TXU noted

TXU continued: "It would be poor policy and upset the REP-customer relationship to allow the DGO [distributed generation owner] to interfere with the retail electric service agreement. A REP would not be able to demand reconnection of a customer's DG if the customer had not paid the DGO per the contract for operation of the DG, and likewise the DGO ought not be able to interfere with the relationship between the REP and the EUC. Accordingly, TXU Energy requests that the Commission amend Section 6 of the IA to include the following sentence: 'Company [TDU] shall have the right to suspend service at the request of the end-use customer's retail electric provider pursuant to 16 TAC § 25.483.'"

Similarly, the Commission should also make clear in its preamble that a DGO may not file a complaint against a REP for pursuing its right to request disconnection for non-payment pursuant to 16 TAC § 25.483, TXU said

In the second scenario, joint utilities raised concerns about the IA remaining, "in full force and effect," subsequent to an EUC moving out, even if there is not a new EUC and the premises remain unoccupied, in which case a non-EUC DGO could seek to force reconnection to the Transmission and Distribution Utility's (TDU's) system in order to resume export of energy to the grid.

TXU continued: "While this scenario seems unlikely, it does present a conceptual problem because all customers in competitive areas of ERCOT must have a REP in order to receive electric service. Therefore, TXU Energy asks that if the Commission adopts the proposed rule language (or something substantially similar) that the Commission provide clarity on this scenario by adding a sentence to the first paragraph of Section 3 of the IA as follows: 'Customer understands and agrees that interconnection of the Facilities is conditioned upon the provision of retail electric service at the premises containing the point of common coupling.'"

"TXU Energy also notes that the foregoing concerns were raised by TDUs in response to the new IA language proposed for Section 7 of the IA that states 'should the end-use customer terminate retail electric service from Company for premises containing a point of common coupling, this Agreement shall continue to remain in full force and effect,' which incorrectly associates retail electric service with the utility. In areas of the state that are open to retail electric competition, retail electric service is provided by the REP," TXU said

TXU continued: "Furthermore, it is important in this provision to acknowledge that the DG facility will not remain interconnected with the utility's facilities if there is no electric service being provided at the premises. TXU Energy recommends the following changes: 'If Customer is not the end-use customer, then should the end-use customer terminate retail electric service from the Company for premises containing the point of common coupling, this Agreement shall continue to remain in full force and effect, subject to the re-establishment of retail electric service for the premises."

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