Tex. Utilities Code § 39.169 — TX Code / Code ut / Chapter 39 / Section 39.169
§ 39.169. CO-LOCATION OF LARGE LOAD CUSTOMER WITH EXISTING GENERATION RESOURCE.
Status: in_force

(a) A power generation company, municipally owned utility, or electric cooperative must submit a notice to the independent organization certified under Section 39.151 for the ERCOT power region before implementing a net metering arrangement between an operating facility registered with the independent organization as a stand-alone generation resource as of September 1, 2025, and a new large load customer as described by Section 37.0561(c).

(b) This section does not apply to a generation resource:

(1) the registration for which included a co-located large load customer at the time of energization, regardless of whether the load was energized at a later date; or

(2) a majority interest of which is owned indirectly or directly as of January 1, 2025, by a parent company of the customer that participates in the new net metering arrangement.

(c) The electric cooperative, transmission and distribution utility, or municipally owned utility that provides electric service at the location of the new net metering arrangement may for reasonable cause including a violation of other law, object to the arrangement, provided however, that no reasonable cause objection may be raised after a final decision by the commission is issued under this section.

(d) The independent organization certified under Section 39.151 for the ERCOT power region shall study the system impacts of a proposed net metering arrangement and removal of generation for which the independent organization receives a notice under Subsection (a) after the independent organization receives all information regarding the arrangement required by the independent organization to be submitted to the independent organization. The independent organization must complete the study and submit the results to the commission with any associated recommendations not later than the 120th day after the independent organization receives all required information regarding the arrangement. Not later than the 60th day after the date the commission receives the study results from the independent organization, the commission shall approve, deny, or impose reasonable conditions on the proposed net metering arrangement as necessary to maintain system reliability, including transmission security and resource adequacy impacts. The conditions must require a generation resource that makes dispatchable capacity available to the ERCOT power 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. The conditions may include:

(1) requiring the retail customer who is served behind-the-meter to reduce load during certain events;

(2) requiring the generation resource to make capacity available to the ERCOT power region during certain events; or

(3) requiring customers to be held harmless for stranded or underutilized transmission assets resulting from the behind-the-meter operation.

(e) If the commission does not approve, deny, or impose reasonable conditions on a proposed net metering arrangement before the expiration of the deadline established by Subsection (d), the commission is considered to have approved the arrangement.

(f) If conditions imposed under Subsection (d) are not limited to a specific period, the commission shall review the conditions at least every five years to determine whether the conditions should be extended or rescinded.

(g) The parties to a proceeding under this section are limited to the commission, the independent organization certified under Section 39.151 for the ERCOT power region, the interconnecting electric cooperative, transmission and distribution utility, or municipally owned utility, and a party in the net metering arrangement.

(h) The commission shall post the decision made on each notice submitted under this section on the commission's Internet website. The commission may not post information regarding the decision that is competitively sensitive or otherwise considered confidential.