|(a) Application. This section applies to owners of
distributed renewable generation, retail electric providers (REPs),
the program administrator for the renewable energy credits trading
program pursuant to §25.173 of this title (relating to Goal for
Renewable Energy), and electric utilities, including transmission
and distribution utilities (TDUs), but excludes river authorities
that are electric utilities.
(b) Definitions. The following terms when used in this
section have the following meanings, unless the context indicates
(1) Distributed renewable generation (DRG)--Electric
generation equipment with a capacity of not more than 2,000 kilowatts
provided by a renewable energy technology, as defined by Public Utility
Regulatory Act §39.904(d), installed on a retail electric customer's
side of the meter.
(2) 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.
(3) Independent school district solar generation (ISD-SG)--Solar
electric generation equipment installed on the customer's side of
the meter at a building or other facility owned or operated by an
independent school district, irrespective of the level of generation
(4) Independent school district solar generation owner
(ISD-SG Owner)--A person who owns ISD-SG.
(5) Interconnection--The physical connection of DRG
or ISD-SG to an electric utility distribution system in accordance
with this section and §25.211 of this title (relating to Interconnection
of On-Site Distributed Generation (DG)), §25.212 of this title
(relating to Technical Requirements for Interconnection and Parallel
Operation of On-Site Distributed Generation), and §25.213 of
this title (relating to Metering for Distributed Renewable Generation).
(6) Out-flow--Energy produced by DRG or ISD-SG and
delivered to an electric utility distribution system.
(1) An electric utility shall permit interconnection
of DRG or ISD-SG if:
(A) the DRGO provides credible tangible proof that
the DRG to be interconnected has or had an original manufacturer's
warranty against breakdown or undue degradation for at least five
(B) the rated capacity of the DRG or ISD-SG does not
exceed the electric utility's service capacity; and
(C) the DRG or ISD-SG is in compliance with applicable
requirements of §25.211 and §25.212 of this title.
(2) An electric utility may disconnect a DRG or ISD-SG
pursuant to §25.211(e) of this title.
(3) An electric utility shall not require a DRGO or
ISD-SG Owner whose generation capacity is not more than 2,000 kilowatts
and whose DRG or ISD-SG meets the standards established by this section
to purchase an amount, type, or classification of liability insurance
the DRGO or ISD-SG Owner would not have in the absence of the DRG
(4) An existing or prospective DRGO or ISD-SG Owner
may request interconnection by submitting an application for interconnection
with the electric utility. The application shall be on a form approved
by the commission and processed by the electric utility in accordance
with §25.211 and §25.212 of this title.
(5) Metering is addressed by §25.213 of this title
and, for certain qualifying facilities, by §25.242(h)(4) of this
title (relating to Arrangements Between Qualifying Facilities and
(d) Renewable Energy Credits (RECs). A DRGO or ISD-SG
is subject to the certification requirements in §25.173 of this
title to be eligible to receive RECs. Any RECs or compliance premiums
resulting from the operation of DRG or ISD-SG are the property of
the DRGO or ISD-SG Owner unless sold or otherwise transferred by the
DRGO or ISD-SG Owner. The REC program administrator shall award the
RECs or compliance premiums to the DRGO or ISD-SG Owner pursuant to §25.173
of this title. The purchase of out-flows does not automatically confer
any rights of REC ownership on the purchaser.
(e) Sale of out-flows by an ISD-SG Owner.
(1) In areas of the state in which customer choice
has not been introduced, the electric utility serving the load of
an ISD-SG Owner shall buy all ISD-SG out-flows at a value consistent
with §25.242 of this title.
(2) In areas in which customer choice has been introduced,
ISD-SG Owners who choose to sell out-flows shall sell out-flows to
the REP that serves the premises at which the ISD-SG is located, at
a value to which both parties agree.
(3) If a REP's service to an ISD-SG Owner is terminated,
any outstanding amounts due to the ISD-SG Owner may be used to offset
outstanding bill amounts but in all cases shall be remitted by the
REP no later than 30 days after the REP receives the usage data and
any related invoices for non-bypassable charges.
(f) Sale of out-flows by a DRGO.
(1) In areas in which customer choice has not been
introduced, the electric utility serving the DRGO's load shall buy
all DRG out-flows at a value consistent with the requirements of §25.242
of this title.
(2) In areas in which customer choice has been introduced,
DRGOs who choose to sell out-flows shall sell their out-flows to the
REP that serves the premises at which the DRG is located at a value
to which both parties agree.
(3) If a REP's service to a DRGO is terminated, any
outstanding amounts due to the DRGO may be used to offset outstanding
bill amounts but in all cases shall be remitted by the REP no later
than 30 days after the REP receives the usage data and any related
invoices for nonbypassable charges.
(g) Transition provision. Electric utilities and REPs
shall make reasonable efforts to inform existing and potential DRGOs
and ISD-SG Owners of their rights and obligations pursuant to this
chapter, and shall change existing metering and purchase arrangements
to conform to this section. However, a metering or purchase arrangement
that is required by a contract that exists on the effective date of
this section shall be changed to conform to this section effective
the date the contract expires. The expiration date of such a contract
may be extended by the DRGO or ISD-SG Owner if the existing terms
of the contract give the DRGO or ISD-SG Owner the unilateral right
to extend the expiration date. Notwithstanding the foregoing provisions
of this subsection, a roll-back meter must be replaced no later than
the date customer choice is offered in the area in which the roll-back
meter is located.
(h) Authority to act on behalf of a customer. If any
person purports to act on behalf of the retail customer pursuant to
this section or §§25.211, 25.212 or 25.213 of this title,
such person must demonstrate contractual authority to do so by letter
of agency or otherwise.
(i) Exemptions. Neither a retail electric customer
that uses distributed renewable generation nor the owner of the distributed
renewable generation that the retail electric customer uses is an
electric utility, power generation company, or retail electric provider
for the purposes of this chapter and is not required to register with
or be certified by the commission if at the time distributed renewable
generation is installed, the estimated annual amount of electricity
to be produced by the distributed renewable generation is less than
or equal to the retail electric customer's estimated annual electricity