The bill, S.B. No. 1003, amends Section 39.554(f) of the Utilities Code to establish new provisions regarding the compensation of distributed renewable generation owners in areas outside of the Electric Reliability Council of Texas (ERCOT). The amendment introduces a clause stating that unless the commission approves an alternative method for compensating these owners for electricity generated, the existing compensation structure will remain in effect. Specifically, it clarifies that for owners who opt for interconnection through a single meter, the electricity generated will offset their consumption for the billing period, and any excess generation will be credited to them.

The bill also removes the previous phrasing that simply stated "For a distributed renewable generation owner" and replaces it with the new language that emphasizes the need for commission approval for alternative compensation methods. This change aims to provide clearer guidelines for how distributed renewable generation owners are compensated for their contributions to the energy grid. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Utilities Code 39.554 (Utilities Code 39)