PART 2. PUBLIC UTILITY COMMISSION OF TEXAS
CHAPTER 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
The Public Utility Commission of Texas (commission) proposes new §25.217, relating to Distributed Renewable Generation and an amendment to §25.242, relating to Arrangements Between Qualifying Facilities and Electric Utilities. Project Number 34890 is assigned to this proceeding.
The proposed new §25.217 addresses interconnection, renewable energy credits, and the sale of out-flows for distributed renewable generation. The proposed amendment to §25.242 establishes metering requirements for Distributed Renewable Generation in non-competitive areas of the state in accordance with Public Utility Regulatory Act (PURA) §39.914 and §39.916. The proposed rules are competition rules subject to judicial review as specified in PURA §39.001(e).
David Smithson, Policy Analyst, Competitive Markets Division, has determined that for each year of the first five-year period the proposed sections are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the section.
Mr. Smithson has determined that for each year of the first five years the proposed sections are in effect the public benefit anticipated as a result of enforcing them will be compliance with PURA §39.914 and §39.916 and the ability of the owners of distributed renewable generation to sell their outflows to electric utilities and retail electric providers who in turn will be able to benefit from the purchase of this generation in connection with the settlement of energy and capacity purchased and sold in the wholesale market. There will be no adverse economic effect on small businesses or micro-businesses as a result of enforcing the new and amended sections. Therefore, no regulatory flexibility analysis is required. There are some anticipated economic costs to owners of distributed renewable generation, electric utilities, and REP, but the costs are difficult to quantify and are required by PURA §39.914 and §39.916.
Mr. Smithson has also determined that for each year of the first five years the proposed sections are in effect there should be no effect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act (APA), Texas Government Code §2001.022.
The commission staff will conduct a public hearing on this rulemaking, if requested pursuant to the Administrative Procedure Act, Texas Government Code §2001.029, at the commission's offices located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701 on Tuesday, August 5, 2008, at 9:30 a.m. The request for a public hearing must be received within 30 days after publication.
In addition to comments on the proposed sections, the commission requests interested persons to file comments in response to the following question:
Should existing qualifying facilities operating under P.U.C. Substantive Rule §25.242(h)(4) in areas of the state in which customer choice has not been introduced be allowed to continue to do so?
Comments on the proposed sections may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication. Reply comments may be submitted within 45 days after publication. Sixteen copies of comments on the proposed sections are required to be filed pursuant to 16 TAC §22.71(c). Comments should be organized in a manner consistent with the organization of the proposed sections. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed sections. The commission will consider the costs and benefits in deciding whether to adopt the proposed sections. All comments should refer to Project Number 34890.
SUBCHAPTER I. TRANSMISSION AND DISTRIBUTION
DIVISION 2. TRANSMISSION AND DISTRIBUTION APPLICABLE TO ALL ELECTRIC UTILITIES
The new section is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 2007 and Supp. 2007) (PURA), which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction, and, in particular, PURA §38.002, which authorizes the commission to adopt standards relating to measurement, quality of service, and metering standards, PURA §39.101(b)(3), which provides the commission the authority to adopt and enforce rules relating to customers' right of access to on-site distributed generation, PURA §39.914, which provides for the sale of out-flows produced by a public school building's solar electric generation panels, and PURA §39.916, which directs the commission to establish standards for distributed renewable generation.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002, 38.002, 39.101, 39.914, and 39.916.
§25.217.Distributed Renewable Generation.
(a) Application. This section applies to owners of distributed renewable generation, retail electric providers (REPs), the program administrator for the renewable energy credits trading program pursuant to §25.173 of this title (relating to Goal for Renewable Energy), and electric utilities, including transmission and distribution utilities (TDUs), but excludes river authorities that are electric utilities.
(b) Definitions. The following terms when used in this section have the following meanings, unless the context indicates otherwise:
(1) Distributed renewable generation (DRG)--An electric generation facility with a capacity of not more than 2,000 kilowatts provided by a renewable energy technology, as defined by Public Utility Regulatory Act §39.904(d), installed on a retail electric customer's side of the meter.
(2) Distributed renewable generation owner (DRGO)--A person who owns DRG.
(3) Independent school district solar generation (ISD-SG)--Solar electric generation equipment installed on the customer's side of the meter at a building or other facility owned or operated by an independent school district, irrespective of the level of generation capacity.
(4) Independent school district solar generation owner (ISD-SG Owner)--A person who owns ISD-SG.
(5) Interconnection--The physical connection of DRG or ISD-SG to an electric utility distribution system in accordance with this section and §25.211 of this title (relating to Interconnection of On-Site Distributed Generation (DG)), §25.212 of this title (relating to Technical Requirements for Interconnection and Parallel Operation of On-Site Distributed Generation) and §25.213 of this title (relating to Metering for Distributed Renewable Generation).
(6) Out-flow--Energy produced by DRG or ISD-SG and delivered to an electric utility distribution system.
(c) Interconnection.
(1) An electric utility shall permit interconnection of DRG or ISD-SG if:
(A) the DRG to be interconnected has at least five years remaining on a warranty against breakdown or undue degradation;
(B) the rated capacity of the DRG or ISD-SG does not exceed the electric utility's service capacity; and
(C) the DRG or ISD-SG is in compliance with applicable requirements of §25.211 and §25.212 of this title.
(2) An electric utility may disconnect a DRG or ISD-SG pursuant to §25.211(e) of this title.
(3) An electric utility shall not require a DRGO or ISD-SG Owner whose generation capacity is below 2,000 kilowatts and whose DRG or ISD-SG meets the standards established by this section to purchase an amount, type, or classification of liability insurance the DRGO or ISD-SG Owner would not have in the absence of the DRG or ISD-SG.
(4) An existing or prospective DRGO or ISD-SG Owner may request interconnection by submitting an application for interconnection with the electric utility. The application shall be on a form approved by the commission and processed by the electric utility in accordance with §25.211 and §25.212 of this title.
(5) Metering is addressed by §25.213 of this title and, for certain qualifying facilities, by §25.242(h)(4)(C) of this title (relating to Arrangements Between Qualifying Facilities and Electric Utilities).
(d) Renewable Energy Credits (RECs). Any RECs or compliance premiums resulting from the operation of DRG or ISD-SG are the property of the DRGO or ISD-SG Owner unless sold or otherwise transferred by the DRGO or ISD-SG Owner. The REC program administrator shall award the RECs or compliance premiums to the DRGO or ISD-SG Owner pursuant to §25.173 of this title. The purchase of out-flows does not automatically confer any rights of REC ownership on the purchaser.
(e) Registration. DRGOs and ISD-SG Owners acting pursuant to this section are exempt from registration pursuant to §25.109 of this title (relating to Registration of Power Generation Companies and Self-Generators), but are subject to the certification requirements in §25.173 of this title to be eligible to receive RECs.
(f) Sale of out-flows by an ISD-SG Owner.
(1) In areas of the state in which customer choice has not been introduced, the electric utility serving the load of an ISD-SG Owner shall buy all ISD-SG out-flows at a value consistent with §25.242 of this title.
(2) In areas in which customer choice has been introduced, ISD-SG Owners shall sell out-flows to the REP that serves the facility at which the ISD-SG is located, at a price to which both parties agree.
(3) If a REP's service to an ISD-SG Owner is terminated, any outstanding amounts due to the ISD-SG Owner shall be remitted by the REP no later than 30 days after the REP receives the usage data and any related invoices for non-bypassable charges.
(g) Sale of out-flows by a DRGO.
(1) In areas in which customer choice has not been introduced, the electric utility serving the DRGO's load shall buy all DRG out-flows at a value consistent with the requirements of §25.242 of this title.
(2) In areas in which customer choice has been introduced, DRGOs who choose to sell out-flows shall sell the out-flows to the REP that serves the load of the DRGO at a price to which both parties agree.
(3) If a REP's service to a DRGO is terminated, any outstanding amounts due to the DRGO shall be remitted by the REP no later than 30 days after the REP receives the usage data and any related invoices for non-bypassable charges.
(h) Transition provision. Electric utilities and REPs shall make reasonable efforts to inform existing and potential DRGOs and ISD-SG Owners of their rights and obligations pursuant to this chapter.
(i) For purposes of this section, the DRGO or ISD-SG Owner is assumed to be the retail customer; provided however, if any other person is the DRGO or ISD-SG Owner and purports to act on behalf of the retail customer pursuant to this section or §§25.211, 25.212 or 25.213 of this title, such person must demonstrate contractual authority to do so by letter of agency or otherwise.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on June 6, 2008.
TRD-200802922
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: July 20, 2008
For further information, please call: (512) 936-7223
The amended section is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 2007 and Supp. 2007) (PURA), which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction, and, in particular, PURA §38.002, which authorizes the commission to adopt standards relating to measurement, quality of service, and metering standards, PURA §39.101(b)(3), which provides the commission the authority to adopt and enforce rules relating to customers' right of access to on-site distributed generation, PURA §39.914, which provides for the sale of out-flows produced by a public school building's solar electric generation panels, and PURA §39.916, which directs the commission to establish standards for distributed renewable generation.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002, 38.002, 39.101, 39.914, and 39.916.
§25.242.Arrangements Between Qualifying Facilities and Electric Utilities.
(a) (No change.)
(b) Application. This section applies [shall apply
] to all PTB REPs and to all electric utilities, including [,
] transmission and distribution utilities [(TDUs),
and electric utilities in Texas]. The provisions of this
section concerning purchase or sale of electricity between an electric
utility and a qualifying facility do not apply to a transmission and
distribution utility. This section does [shall]
not apply to municipal utilities, river authorities, or electric cooperatives.
(c) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:
(1) - (2) (No change.)
(3) Cost of decremental energy--The cost savings to
a utility associated with the utility's ability to back-down some
of its units or to avoid firing units, or to avoid purchases of power
from another source [utility] because of purchases
of power from qualifying facilities.
(4) - (18) (No change.)
(d) - (e) (No change.)
(f) PTB REP and electric utility obligations.
(1) - (2) (No change.)
(3) Interconnection [Obligation to interconnect].
Interconnection by a qualifying facility is addressed by [
The obligation of electric utilities and
TDUs to interconnect with qualifying facilities is set forth in]
Subchapter I, Division 1 of this chapter (relating to Transmission
and Distribution) if the interconnection is to a transmission
system and by §25.211 of this title (relating to Interconnection
of On-site Distributed Generation) if the interconnection is to a
distribution system, except if the interconnection is regulated by
the Federal Energy Regulatory Commission [with respect
to qualifying facilities seeking to interconnect with TDUs in the
ERCOT, and in the respective electric utility's Open Access Transmission
Tariff for electric utilities in non-ERCOT power regions].
(4) Transmission to other electric utilities. Transmission service provided by an electric utility in the ERCOT power region to a qualifying facility shall be governed by Subchapter I of this chapter.
(5) (No change.)
(g) (No change.)
(h) Standard rates for purchases from qualifying facilities with a design capacity of 100 kilowatts or less.
(1) - (3) (No change.)
(4) In addition, each electric utility shall offer qualifying facilities using renewable resources with an aggregate design capacity of 50 kilowatts or less the option of interconnecting through a single meter that runs forward and backward.
(A) - (B) (No change.)
(C) This option is not available for applications for interconnection received by the electric utility after December 31, 2008.
(5) - (6) (No change.)
(7) Except for qualifying facilities subject to §25.217
of this title (relating to Distributed Renewable Generation) requirements
[Requirements] for the provision of insurance under
this subsection shall be of a type commonly available from insurance
carriers in the region of the state where the customer is located
and for the classification to which the customer would belong in the
absence of the qualifying facility. An enhancement to a standard homeowner's
or farm and ranch owner's policy containing adequate liability coverage
and having the effect of adding the electric utility as an additional
insured or named insured is one means of satisfying the requirements
of this paragraph. Such policies shall in each instance be on a form
approved or promulgated by the Texas Department of Insurance and issued
by a property or casualty insurer licensed to do business in the State
of Texas.
(i) - (k) (No change.)
[(l) Interconnection costs. The establishment
and reimbursement of interconnection costs are set forth in Subchapter
I of this chapter with respect to qualifying facilities seeking to
interconnect with TDUs in ERCOT, and in the respective electric utility's
Open Access Transmission Tariff for electric utilities in non-ERCOT
power regions.]
(l) [(m)] System emergencies.
(1) Qualifying facility obligation to provide power during system emergencies. A qualifying facility shall be required to provide energy or capacity to an electric utility during a system emergency only to the extent:
(A) provided by agreement between such qualifying facility and electric utility; or
(B) ordered under the Federal Power Act, §202(c).
(2) Discontinuance of purchases and sales during system emergencies. During any system emergency, an electric utility may discontinue:
(A) purchases from a qualifying facility if such purchases would contribute to such emergency; and
(B) sales to a qualifying facility, provided that such discontinuance is on a nondiscriminatory basis.
(m) [(n)
] Enforcement. A proceeding
to resolve a dispute between an electric utility, PTB REP and a qualifying
facility arising under this section may be instituted by filing of
a petition with the commission. Electric utilities, PTB REPs, and
qualifying facilities are encouraged to engage in alternative dispute
resolution prior to the filing of a complaint.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on June 6, 2008.
TRD-200802923
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: July 20, 2008
For further information, please call: (512) 936-7223
SUBCHAPTER P. TEXAS UNIVERSAL SERVICE FUND
The Public Utility Commission of Texas (commission) proposes an amendment to §25.403, relating to the Texas High Cost Universal Service Program. The proposed rule addresses reporting requirements for eligible telecommunications providers (ETPs) in accordance with the Final Order adopting the parties' Unanimous Settlement Agreement in P.U.C. Docket Number 34723, Petition for Review of Monthly Per Line Support Amounts from the Texas High Cost Universal Service Plan and the Small and Rural Incumbent Local Exchange Company Universal Service Plan Pursuant to PURA §56.031. Project Number 35632 is assigned to this proceeding.
David Smithson, Policy Analyst, Competitive Markets Division, has determined that for each year of the first five-year period the proposed section is in effect, there will be no fiscal implications for state government as a result of enforcing or administering the section.
Mr. Smithson has determined that for each year of the first five years the proposed section is in effect the public benefit anticipated as a result of enforcing the section will be the ability for the public to have greater knowledge of disbursements from the Texas Universal Service Fund (TUSF) to ETPs. There will be no adverse economic effect on small businesses or micro-businesses as a result of enforcing this section. Therefore, no regulatory flexibility analysis is required. The anticipated economic cost to persons who are required to comply with this rule is less than $5,000 per year.
Mr. Smithson has also determined that for each year of the first five years the proposed section is in effect there should be no effect on a local economy, and therefore no local employment impact statement is required under Administrative Procedure Act (APA), Texas Government Code §2001.022.
The commission staff will conduct a public hearing on this rulemaking, if requested pursuant to the Administrative Procedure Act, Texas Government Code §2001.029, at the commission's offices located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701 on Thursday, July 10, 2008, at 9:30 a.m. The request for a public hearing must be received within 10 days after publication.
Comments on the proposed amendment may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 20 days after publication. Sixteen copies of comments to the proposed section are required to be filed pursuant to §22.71(c) of this title. Comments should be organized in a manner consistent with the organization of the proposed section. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed section. The commission will consider the costs and benefits in deciding whether to adopt the proposed section. All comments should refer to Project Number 35632.
This amendment is proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §12.001, §14.002 (Vernon 2007 and Supp. 2007) (PURA), which provide the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction, PURA §51.001 which gives the commission the authority to make and enforce rules necessary to protect customers consistent with the public interest; PURA §52.051(1)(A), which provides the commission the authority to preserve universal service; PURA §52.002, which authorizes the commission to regulate rates, operations, and services so that the rates are just, fair, and reasonable and the services are adequate and efficient; PURA §56.021(1), §56.021(5) which provide the commission with the authority to assist telecommunications providers in providing basic local telecommunications service at reasonable rates in high cost rural areas and reimburse the providers for providing lifeline service; and, PURA §56.023 which, among other things, requires the commission to assure reasonable rates for basic local telecommunications service and approve procedures for the collection and disbursal of revenue from the universal service fund.
Cross Reference to Statutes: Public Utility Regulatory Act, Texas Utilities Code Annotated §§12.001, 14.002, 51.001, 51.008, 52.051, 52.002, 56.021, 56.023 (Vernon 2007 and Supp. 2007).
§26.403.Texas High Cost Universal Service Plan (THCUSP).
(a) - (e) (No change.)
(f) Reporting requirements. An ETP eligible to receive support pursuant to this section shall report the following information to the commission or the TUSF administrator.
(1) (No change.)
(2) Quarterly reporting requirements. An ETP shall file quarterly reports with the commission showing actual THCUSP disbursements by study area.
(A) The initial report shall cover the period of April 25, 2008, the date of the commission's Final Order in P.U.C. Docket Number 34723, through June 30, 2008.
(B) Subsequent reports shall cover each calendar quarter, beginning July 1, 2008.
(C) Reports for quarters which end prior to this rule's effective date shall be due within 90 days of that date. Reports for subsequent quarters shall be filed no later than 3:00 p.m. on the 20th business day after the end of the reporting period.
(D) Reports shall be filed electronically in the project number assigned by the commission's central records office no later than 3:00 p.m. on the 20th business day after the end of the reporting period.
(3) [(2)] Annual reporting requirements.
An ETP shall report annually to the TUSF administrator that it is
qualified to participate in the THCUSP.
(4) [(3)] Other reporting requirements.
An ETP shall report any other information that is required by the
commission or the TUSF administrator, including any information necessary
to assess contributions to and disbursements from the TUSF.
(g) (No change.)
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on June 6, 2008.
TRD-200802921
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: July 20, 2008
For further information, please call: (512) 936-7223