The bill, S.B. No. 2021, aims to enhance the interconnection and integration of distributed energy resources (DERs) within Texas's electricity framework. It introduces new definitions for "aggregated distributed energy resource" and "distributed energy resource" in Section 31.002 of the Utilities Code, specifying that an aggregated resource consists of individual DERs operating as a single unit, with a capacity limit of 1.5 megawatts unless adjusted by commission rule. Additionally, it amends the definition of "power generation company" to exclude certain types of distributed natural gas generation facilities. The bill also establishes registration requirements for owners or operators of DERs to participate in the wholesale market and outlines the necessary interconnection guidelines and customer protections.

Furthermore, the bill creates a new Subchapter O in Chapter 39 of the Utilities Code, which mandates the Public Utility Commission to set rules for the integration of DERs, including requirements for dispatchability, reliability, and customer protections. It allows transmission and distribution utilities to recover costs associated with interconnections and clarifies liability issues for utilities providing service to DERs. The bill emphasizes the importance of ensuring that DERs do not adversely affect the reliability of the electricity distribution system while promoting the growth of renewable energy sources in Texas. The Public Utility Commission is tasked with implementing these changes promptly after the bill's effective date.

Statutes affected:
Introduced: Utilities Code 31.002, Utilities Code 39.351 (Utilities Code 31, Utilities Code 39)