The bill, S.B. No. 2021, aims to enhance the interconnection and integration of distributed energy resources (DERs) within Texas's electricity market. 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 producing no more than 1.5 megawatts of electricity each, with potential adjustments by the commission. Additionally, it amends the definition of "power generation company" to exclude ownership 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 conditions under which they can provide energy or ancillary services.

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 guidelines for interconnection, customer protections, and cost recovery for utilities. It specifies that utilities can defer costs associated with interconnections and outlines the liability protections for utilities in relation to DER operations. The bill also ensures that customers purchasing or leasing DERs receive necessary disclosures and protections against deceptive practices. The Public Utility Commission is tasked with implementing these changes promptly, with the act taking effect immediately upon a two-thirds vote or on September 1, 2025, if that threshold is not met.

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