Texas

Summary: In response to the 1999 Texas Public Utility Regulatory Act that determined that on-site generation was an entitlement to all customers, the Public Utility Commission of Texas developed generous interconnection regulations, effective 2001. Texas’ rules allow the interconnection of distributed generation, including CHP, up to 10MW, and do not establish a limit on the total interconnected distributed generation capacity at any one facility. Notable in the Texas rules are a variety of size tiers, which allow for less restrictive interconnection for systems of smaller sizes. Additionally, the rules establish customer-friendly timelines on approval or rejection of interconnection applications, ensuring proposed projects do not sit in regulatory limbo.

Links:

• Rules 25.211 and 25.212 can be viewed here: Rules
• Visit DSIRE’s database for additional information about the rules and updates on potential changes to the rules

Contact:

John McElroy
1701 N. Congress Avenue
Suite 9-180
Austin, TX 78711-3326 
John McElroy (mcelroy@opc.state.tx.us)
(512) 936-7518
(512) 936-7520

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Description: The investor-owned utilities ruled by the Texas Public Utility Commission have not developed standby rates specifically for CHP systems. Instead, standby rates are negotiated by these utilities on a case-by-case basis, with applicable rates generally ranging from very negative to neutral in their treatment of and impact on CHP.

Links:

• More information about best practices in utility rate design can be found on the EPA’s CHP Partnership website.

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Summary:  After the 1999 deregulation of Texas’ electric industry, Texas Public Utility Commission proposed a new rule establishing energy efficiency requirements applicable to every investor-owned utility in the state. The goals have since been updated, and in 2008 an updated rule allowed, for the first time, CHP to count towards the efficiency goals. Only CHP systems up to 10MW in size are eligible. Texas’ investor-owned utilities are to achieve a 15% reduction in their annual growth in demand of residential and commercial customers by 2009, and a 20% reduction by 2010.

Links:

• The effective §25.181 can be read in its entirety here: Rules
• A number of documents describing the process through which the new goal was developed can be found here: Documents

Contact:

Theresa Gross
Electric Division - Energy Efficiency
Texas Public Utility Commission
512-936-7367
512-936-7361 (Fax)
theresa.gross@puc.state.tx.us

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Summary:  Texas’ 2001 Standard Permit sets limits on NOx emissions, and calculates a system’s compliance by considering the useful thermal output of the system. Thus, the emissions are calculated on a net MWh basis, which provides an incentive for CHP.

Links:

• The new air quality standard can be viewed here: Standard

Contact:

Anne Inman
12100 Park 35 Circle
Austin, TX 78711 
(512) 239-1264

Last Updated 08/27/2009

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