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Staff Seeks Comment On Net Metering Arrangements Proposed Rules Involving A Large Load Co-Located With An Existing Generation Resource
“This proposed [Texas] rule will implement Public Utility Regulatory Act (PURA) §39.169 as enacted by Senate Bill (SB) 6 during the Texas 89th Regular Legislative Session. The new rule will apply to a proposed net metering arrangement involving a large load and an existing generation resource and will establish the criteria for ERCOT’ s study of a proposed net metering arrangement. The rule will also set forth the procedural steps for ERCOT to complete its study of a proposed net metering arrangement within 120 days and the procedural steps for the commission to approve, with or without conditions, or deny a proposed net metering arrangement within 60 days after ERCOT files its study results and recommendations with the commission.”
In addition to general comments on the text of the proposed rule, the commission invites interested persons to address the following specific questions:
- Does the commission have authority to approve a net metering arrangement ifretail electric service to the large load customer would not be provided by the municipally owned utility or electric cooperative that is certificated to provide retail electric service to the area in which the large load customer is located?
- PURA §39.169(c) authorizes the electric cooperative, transmission and distribution utility, or municipally owned utility that provides electric service at the location of the new net metering arrangement to object to the arrangement for reasonable cause, including a violation of other law. a. How should the commission interpret “electric service” in PURA §39.169(c)? b. What process should be used for addressing an objection to a net metering arrangement based on a violation of other law?
- PURA §39.169(g) limits the parties to a proceeding under PURA §39.169 to the commission, ERCOT, the interconnecting electric cooperative, transmission and distribution utility, or municipally owned utility, and a party in the net metering arrangement. How should the commission interpret “interconnecting” in PURA §39.169(g)?
- Is there a scenario where the electric cooperative, transmission and distribution utility, or municipally owned utility that objects to a net metering arrangement under PURA §39.169(c) is not a party to the proceeding under PURA §39.169(g)? If so, how can these two statutory provisions be reconciled?
- PURA §39.169(d) states that if the commission imposes conditions on a proposed net metering arrangement, the conditions must require a generation resource that makes dispatchable capacity available to the ERCOT region before the implementation of a net metering arrangement under this section to make at least that amount of dispatchable capacity available to the ERCOT power region after the implementation of the arrangement at the direction of the independent organization in advance of an anticipated emergency condition.
- How should the commission interpret “dispatchable capacity”?
- How should the commission interpret “make available”? How far in advance of an anticipated emergency condition should ERCOT be able to direct a generation resource to make dispatchable capacity available to the ERCOT region? Should “advance” be measured based on time, megawatt, or some other rnetric?
- How should the commission interpret an “anticipated emergency condition”?
Proposal For Publication Of New 16 TAC §25.205 (09/18/2025)
58479
(Rulemaking For Net Metering Arrangements Involving A Large Load Co-Located With An Existing Generation Resource Under Pura 39.169)
