House-Passed Version Of Texas Distributed Generation Bill Removes Language Related To Retail Electric Providers

The Texas House has passed a narrowed version of HB 3916, which relates to various issues concerning distributed generation

As passed, the bill is now only applicable to areas in the ERCOT power region where retail customer choice has not been implemented, and only applies to DG installed by grocery stores or customers engaged in food manufacturing or distribution for retail grocery sales

With the narrower focus, language was struck from the bill that had stated (in all customer choice areas) that the owner or operator of a distributed generation could sell electric power generated by the distributed generation facility to the host customer (e.g., not through a REP)

Specifically, the following language was struck from the engrossed HB 3916

"A person who owns or operates a distributed generation facility in the ERCOT power region may sell electric power generated by the distributed generation facility: (1) in areas where retail customer choice exists, to the retail electric customer on whose side of the meter the distributed generation facility is installed and operated...";

The engrossed HB 3916 also struck language stating that, "An electric cooperative, municipally owned utility, or retail electric provider that provides retail electric service to the owner or operator of a distributed generation facility may purchase electric power provided to the cooperative, utility, or provider by the owner or operator of the distributed generation facility at a value agreed to by the cooperative, utility, or provider and the owner or operator of the distributed generation facility. The value of the electric power may be based wholly or partly on the ERCOT power region market clearing price of energy at the time of day and at the location at which the electric power is made available."