The text puslished in the June 2011 Renewable Energy Record electronic Newsletter was later revised. Here is the newer text:
SB 981 (Carona) – Distributed Renewable Generation Third Party Ownership - paves the way for third party ownership models for distributed renewable generation (DRG) to emerge within the Texas electric market. It does so by broadening the definition of a DRG owner in Texas' electric markets to include: a) the actual owner of the DRG system (if different from the retail customer), b) the retail electric customer behind whose utility revenue meter the DRG is installed, and c) any third party who is assigned ownership rights to the energy produced from the DRG system. It clarifies that neither the retail electric customer nor the owner of the DRG is an electric utility, retail electric provider, or power generation company, and is not subject to the regulation or registration requirements applicable to these entities.
The bill applies to the competitive areas inside ERCOT and the still regulated areas outside ERCOT. It applies to small DRG systems that, at the time of installation, have an annual electricity production estimate that is equal to or less than the annual electricity consumption of the retail electric customer. It does not address third party ownership rules affecting municipal utilities or rural electric cooperatives.