Texas Senate Passes Substitute Bill On Consumer Protections For Distributed Generation Which Omits Problematic Language Prohibiting Retail Provider Early Termination Fees, And Other REP Mandates

The Texas Senate approved SB 2066, in the form of a committee substitute, which would establish certain disclosure requirements for distributed renewable generation, for residential and small commercial customers

The bill awaits action in the House

Most notably, the engrossed bill, adopting the language from a previously reported committee 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 engrossed bill omits this language

Furthermore, the engrossed bill 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 engrossed bill 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:

• the cost of all equipment to be installed;

• a detailed accounting of fees associated with the installation or operation of the generation resource;

• representations, if any, made as part of the agreement regarding the expected operational performance and financial performance of the generation resource

"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.