Utilities Code § 39.554

Sec. 39.554. INTERCONNECTION OF DISTRIBUTED RENEWABLE GENERATION. (a) In this section: (1) "Distributed renewable generation" has the meaning assigned by Section 39.916. (2) "Distributed renewable generation owner" means an owner of distributed renewable generation that is a retail electric customer. (3) "Interconnection" has the meaning assigned by Section 39.916. (b) A distributed renewable generation owner in the service area of an electric utility subject to this subchapter may request interconnection by filing an application for interconnection with the utility. An application for interconnection is subject to the utility's safety and reliability requirements. The utility's procedures for the submission and processing of an application for interconnection shall be consistent with rules adopted by the commission regarding interconnection. (c) An electric utility that approves an application of a distributed renewable generation owner under Subsection (b): (1) shall install, maintain, and retain ownership of the meter and metering equipment; and (2) may install load research metering equipment on the premises of the owner, at no expense to the owner. (d) At the request of an electric utility that approves an application of a distributed renewable generation owner under Subsection (b), the owner shall: (1) provide and install a meter socket, a metering cabinet, or both a socket and cabinet at a location designated by the utility on the premises of the owner; and (2) provide, at no expense to the utility, a suitable location for the utility to install meters and equipment associated with billing and load research. (e) An electric utility that approves an application of a distributed renewable generation owner under Subsection (b) shall provide to the owner the metering options described by Section 39.916(f) and an option to interconnect with the utility through a single meter that runs forward and backward if: (1) the owner: (A) intends to interconnect the distributed renewable generation at an apartment house, as defined by Section 184.011, occupied by low-income elderly tenants that qualifies for master metering under Section 184.012(b) and the distributed renewable generation is reasonably expected to generate not less than 50 percent of the apartment house's annual electricity use; or (B) has a qualifying facility with a design capacity of not more than 50 kilowatts; and (2) the distributed renewable generation or qualifying facility that is the subject of the application is rated to produce an amount of electricity that is less than or equal to: (A) the owner's estimated annual kilowatt hour consumption for a new apartment house or qualifying facility; or (B) the amount of electricity the owner consumed in the year before installation of the distributed renewable generation or qualifying facility. Text of subsection effective until September 01, 2026 (f) For a distributed renewable generation owner that chooses interconnection through a single meter under Subsection (e): (1) the amount of electricity the owner generates through distributed renewable generation or a qualifying facility for a given billing period offsets the owner's consumption for that billing period; and (2) any electricity the owner generates through distributed renewable generation or a qualifying facility that exceeds the owner's consumption for a given billing period shall be credited to the owner under Subsection (g). Text of subsection effective on September 01, 2026 (f) Unless the commission approves an alternative method for compensating a distributed renewable generation owner for electricity generated by distributed renewable generation or a qualifying facility, for a distributed renewable generation owner that chooses interconnection through a single meter under Subsection (e): (1) the amount of electricity the owner generates through distributed renewable generation or a qualifying facility for a given billing period offsets the owner's consumption for that billing period; and (2) any electricity the owner generates through distributed renewable generation or a qualifying facility that exceeds the owner's consumption for a given billing period shall be credited to the owner under Subsection (g). (g) An electric utility that purchases surplus electricity under Subsection (f)(2) shall purchase the electricity from the distributed renewable generation owner at the cost of the utility as determined by commission rule. The utility shall take reasonable steps to inform the owner of the amount of surplus electricity purchased from the owner in kilowatt hours during the owner's most recent billing cycle. A credit balance of not more than $50 on the owner's monthly bill may be carried forward onto the owner's next monthly bill. The utility shall refund to the owner a credit balance that is not carried forward or the portion of a credit balance that exceeds $50 if the credit balance is carried forward. (h) In a base rate proceeding or fuel cost recovery proceeding conducted under Chapter 36, the commission shall ensure that any additional cost associated with the metering and payment options described by Subsections (e), (f), and (g) is allocated only to customer classes that include distributed renewable generation owners who have chosen those metering options. Text of subsection effective on September 01, 2026 (i) Before approving an alternative method for compensating a distributed renewable generation owner for electricity generated by distributed renewable generation or a qualifying facility, the commission shall require the electric utility to conduct and submit to the commission a comprehensive cost-benefit analysis using established best practices to justify the rates of compensation and any associated fees. The commission must consider the comprehensive cost-benefit analysis before approving alternative rates for compensating distributed renewable generation owners or the continuation of net metering, including any rates or fees that apply only to distributed renewable generation owners and reflect the value provided by the distributed renewable generation or qualifying facility. Added by Acts 2011, 82nd Leg., R.S., Ch. 1113 (S.B. 1910), Sec. 1, eff. June 17, 2011. Amended by: Acts 2025, 89th Leg., R.S., Ch. 82 (H.B. 912), Sec. 1, eff. September 1, 2026.