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A BILL TO BE ENTITLED
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AN ACT
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relating to energy efficiency goals and programs and the |
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participation of loads in certain energy markets. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.905, Utilities Code, is amended by |
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amending Subsections (a) and (b) and adding Subsection (h) to read |
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as follows: |
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(a) It is the goal of the legislature that: |
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(1) electric utilities will administer energy |
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efficiency incentive programs in a market-neutral, |
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nondiscriminatory manner but will not offer underlying competitive |
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services; |
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(2) all customers, in all customer classes, will have |
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a choice of and access to energy efficiency alternatives and other |
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choices from the market that allow each customer to reduce energy |
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consumption, peak demand, or energy costs; |
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(3) each electric utility annually will provide, |
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through a cost-effective portfolio of market-based standard offer |
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programs or through limited, targeted, market-transformation |
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programs, incentives sufficient for retail electric providers and |
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competitive energy service providers to acquire additional |
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[cost-effective] energy efficiency for the utility's [residential
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and commercial] customers, other than customers who operate a |
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transmission-level voltage facility, equivalent to at least |
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one-half of one[:
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[(A) 10] percent of the electric utility's peak |
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[annual growth in] demand, not including demand from |
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transmission-level industrial facilities, [of residential and
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commercial customers] by January 1, 2013 [December 31, 2007;
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[(B)
15 percent of the electric utility's annual
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growth in demand of residential and commercial customers by
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December 31, 2008, provided that the electric utility's program
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expenditures for 2008 funding may not be greater than 75 percent
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above the utility's program budget for 2007 for residential and
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commercial customers, as included in the April 1, 2006, filing; and
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[(C)
20 percent of the electric utility's annual
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growth in demand of residential and commercial customers by
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December 31, 2009, provided that the electric utility's program
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expenditures for 2009 funding may not be greater than 150 percent
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above the utility's program budget for 2007 for residential and
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commercial customers, as included in the April 1, 2006, filing]; |
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(4) each electric utility in the ERCOT region shall |
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use its best efforts to encourage and facilitate the involvement of |
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the region's retail electric providers in the delivery of |
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efficiency programs and demand response programs under this |
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section; |
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(5) retail electric providers in the ERCOT region, and |
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electric utilities outside of the ERCOT region, shall provide |
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customers with energy efficiency educational materials; [and] |
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(6) notwithstanding Subsection (a)(3), electric |
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utilities shall continue to make available, at 2007 funding and |
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participation levels, any load management standard offer programs |
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developed for industrial customers and implemented prior to May 1, |
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2007; and |
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(7) electric utilities may communicate with and |
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provide rebate or incentive funds to their customers to promote or |
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facilitate the success of programs implemented under this section. |
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(b) The commission shall provide oversight and adopt rules |
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and procedures to ensure that the utilities can achieve the goal of |
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this section, including: |
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(1) establishing an energy efficiency cost recovery |
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factor for ensuring timely and reasonable cost recovery for utility |
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expenditures made to satisfy the goal of this section; |
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(2) establishing an incentive under Section 36.204 to |
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reward utilities administering programs under this section that |
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exceed the minimum goals established by this section; |
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(3) providing a utility that is unable to establish an |
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energy efficiency cost recovery factor in a timely manner due to a |
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rate freeze with a mechanism to enable the utility to: |
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(A) defer the costs of complying with this |
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section; and |
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(B) recover the deferred costs through an energy |
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efficiency cost recovery factor on the expiration of the rate |
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freeze period; |
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(4) ensuring that the costs associated with programs |
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provided under this section are borne by the customer classes that |
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receive the services under the programs; [and] |
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(5) ensuring the program rules encourage the value of |
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the incentives to be passed on to the end-use customer; |
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(6) ensuring that programs are evaluated, measured, |
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and verified using a framework established by the commission that |
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promotes effective program design and consistent and streamlined |
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reporting; and |
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(7) ensuring that an independent organization |
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certified under Section 39.151 allows load participation in all |
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energy markets for residential, commercial, and industrial |
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customer classes, either directly or through aggregators of retail |
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customers, to increase market efficiency, competition, and |
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customer benefits. |
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(h) The commission shall develop a standard disclosure form |
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and require an energy efficiency provider to use the form to help |
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consumers make better informed decisions regarding energy |
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efficiency investments. The form must include disclosures |
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regarding: |
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(1) the full scope of incentives that are available to |
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the consumer for the energy efficiency measure the consumer is |
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considering, including all utility, city, county, state, and |
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national incentives; |
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(2) the value of any incentives used to reduce the |
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costs of products or services offered passed on to the energy |
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service provider marketing its energy efficiency program; |
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(3) other related energy efficiency incentives that |
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are available to the consumer; and |
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(4) the consumer's estimated energy savings and |
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payback period. |
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SECTION 2. Section 39.905(b-2), Utilities Code, is |
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repealed. |
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SECTION 3. (a) The Public Utility Commission of Texas shall |
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conduct a study to determine: |
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(1) the effect of including avoided transmission and |
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distribution capacity costs as a factor included in an analysis |
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used to determine whether programs are cost-effective; |
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(2) the appropriate cost of energy to be included as a |
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factor included in an analysis used to determine whether programs |
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are cost-effective; |
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(3) how the reductions in energy demand and energy |
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consumption provided by energy efficiency programs affect the |
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market clearing price in ERCOT for the balancing energy market |
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during peak and nonpeak periods; and |
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(4) ways to include the associated changes in energy |
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prices due to the effect of energy efficiency programs, as found |
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under Subdivision (3) of this subsection, as a factor included in an |
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analysis used to determine whether a program is cost-effective. |
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(b) The commission shall report its findings from the study |
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conducted under this section to the legislature not later than |
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September 1, 2012. |
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SECTION 4. This Act takes effect September 1, 2011. |