PUC Adopts Rule Implementing SB 981 (DRG 3rd Party Ownership)
Posted 05/24/2012

On Friday, May 18 the Public Utility Commission of Texas adopted modifications to existing rule implementing SB 981, often referred to as the 3rd Party Ownership bill, 1) clearly establishing the non-utility status of Distributed Renewable Generation (DRG); 2) defining a Distributed Renewable Generation Owner to include whomever owns the system or the energy produced from it on the customer side of the meter;  and affirming that the rule applies not only to the still regulated T&D utilities in the vast competitive areas of the state, but to the regulated utility territories outside of ERCOT as well. Click below for the Order Adopting Amendment.

http://interchange.puc.state.tx.us/WebApp/Interchange/application/dbapps/filings/pgSearch_Results.asp?TXT_CNTR_NO=39797&TXT_ITEM_NO=42

 

“TREIA was engaged in this successful effort both formally and behind the scenes beginning with the lobbying effort for the bill and its ultimate passage in 2011 through the rulemaking ups and downs at the Commission,” said Russel Smith, Executive Director. “Our industry can now move ahead in the development, marketing, and finance of innovative equipment and power ownership arrangements confident that the structure they choose will not subject involved parties to extensive regulatory requirements as if they were an electric utility company.”


The new DRGO definition in the revised and adopted rule:

Distributed renewable generation owner (DRGO) -- A person who owns DRG; a retail electric customer on whose side of the meter DRG is installed and operated, regardless of whether the customer takes ownership of the distributed renewable generation; or a person who by contract is assigned ownership rights to energy produced from DRG located at the premises of the customer on the customer's side of the meter.



Thanks are due to Senator John Carona for authoring the bill (sponsored in the House by Representatives Anchia, Gallego, and Coleman), and to Senator Carona, Senator Jose Rodriguez, and Representative Dee Margo for their commitment to the full implementation of SB 981. Their letters to the Commission stressing legislative intent no doubt contributed significantly to the positive outcome of the rulemaking.

"I applaud the PUC Commissioners for their decision, which will encourage new private investment in solar electric generation and promote green jobs in El Paso and throughout the state,” said Senator Rodriguez. “Power purchase agreements offer tremendous advantages to solar leases by significantly lowering costs for customers. Many in our community are elated to have this option available in EPE's service area, and we believe that this will encourage considerably more investment in renewable energy. I want to thank the PUC for helping ensure that El Paso can take full advantage of our tremendous solar resources.”


 
 
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