Texas PUC Chair Nelson Concerned With Implications From Lack Of Jurisdiction Over Third-Party DG Providers, In Distributed Generation Interconnection Rule

In addressing a rulemaking that would permit non-end users to be parties to distributed generation interconnection agreements (IAs), Donna Nelson, Chair of the Public Utility Commission of Texas, expressed concern with the implications from having entities, over which the PUC lacks jurisdiction, sign the agreements

In short, the proposed rule would allow the end-use customer to be a party to the IA or otherwise elect to have an entity who owns the distributed generation (DG) facility but is not the end-use customer (DG owner), a person who by contract is assigned ownership rights to energy produced by the DG facility, or the owner of the premises at which the DG facility is located, to be a party to the IA rather than the end-use customer.

"My concern is that the Commission would not have jurisdiction over third parties that will be entering into these agreements," Nelson said during Friday's open meeting, in asking for more time to consider a proposal for adoption

"I fear that when something goes wrong with these agreements, I believe the customers and legislators and the world will look at us to fix the problem, because they're going to perceive, the customer especially, that we have authority over this, but in reality we don't have any authority over the third party providers," Nelson said

While, in response to such concerns, third-party solar providers have said they would voluntarily submit to PUC jurisdiction with respect to the interconnection agreements, Nelson reiterated PUC Staff's concern that such acquiesce would not be legally binding

Commissioner Kenneth Anderson mused whether jurisdiction could be exercised by including the interconnection agreement process in the ERCOT protocols, which would place the entities under PUC jurisdiction

Commissioners will further consider Nelson's comments before addressing the rulemaking at a future open meeting

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