Relating to the compensation of a distributed renewable generation owner in certain areas outside of ERCOT.

Contracts

• Power Purchase Agreements (PPAs): Third-party solar developers and host customers must review "Change in Law" and "Tariff Modification" clauses. This statute strengthens the stability of projected savings, but contracts should explicitly address how parties will share costs if a utility successfully passes a new fee via a CBA after 2026.
• ROI Projections: Capital expenditure proposals for non-ERCOT facilities can now assume a higher degree of rate stability. Update internal investment memos to reflect that adverse rate changes now require a significant regulatory hurdle.

Hiring/Training

• Regulatory Monitoring: In-house counsel or compliance officers must be trained to monitor PUC filings for "Alternative Compensation Method" applications starting late 2026.
• Technical Consultants: If your utility files a rate case, you will need to engage energy economists or rate analysts to challenge the utility's CBA methodology.

Reporting & Record-Keeping

• Generation Logging: Maintain granular data on your facility's onsite generation and consumption. If a utility attempts to alter rates based on a CBA, you must possess your own load profile data to rebut claims regarding your facility's impact on peak demand or grid stability.

Fees & Costs

• Fee Prevention: This bill is a defensive measure designed to prevent the implementation of new "solar surcharges" or "standby fees."
• Litigation Budget: Allocate potential budget for legal intervention. If a utility files a CBA to lower solar credit rates, trade associations and large commercial users will need to fund a legal intervention to protect the current rate structure.