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 the possibility for the commission to approve alternative methods for compensating these owners for electricity generated by distributed renewable sources or qualifying facilities. 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 is set to take effect on September 1, 2025. The changes aim to enhance the compensation framework for distributed renewable generation owners, ensuring they are fairly compensated for their contributions to the energy grid while providing flexibility for alternative compensation methods.

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