H.B. No. 912 amends Section 39.554 of the Utilities Code to establish new guidelines for compensating owners of distributed renewable generation in areas outside of the Electric Reliability Council of Texas (ERCOT). The bill introduces a requirement that, unless an alternative compensation method is approved by the commission, the electricity generated by these owners will offset their consumption for the billing period. Additionally, any excess electricity generated will be credited to the owner. The bill also mandates that before any alternative compensation method is approved, the electric utility must conduct a comprehensive cost-benefit analysis to justify the proposed rates and fees, ensuring that the commission considers this analysis in its decision-making process.

The new legal language includes provisions that require the commission to evaluate the value provided by distributed renewable generation and qualifying facilities when determining compensation rates. This ensures that any rates or fees specifically affecting distributed renewable generation owners reflect their contributions. The act is set to take effect on September 1, 2026.

Statutes affected:
Introduced: Utilities Code 39.554 (Utilities Code 39)
House Committee Report: Utilities Code 39.554 (Utilities Code 39)
Engrossed: Utilities Code 39.554 (Utilities Code 39)
Senate Committee Report: Utilities Code 39.554 (Utilities Code 39)
Enrolled: Utilities Code 39.554 (Utilities Code 39)