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  By: Carona S.B. No. 1351
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to demand-side electric energy resources in the
  competitive electric market.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 39, Utilities Code, is
  amended by adding Section 39.160 to read as follows:
         Sec. 39.160.  LOAD PARTICIPATION REQUIREMENTS. The
  commission and the independent organization certified under
  Section 39.151 for each power region shall allow load participation
  in all energy markets for residential, commercial, and industrial
  customer classes, directly or through aggregators of retail
  customers, to the extent that load participation by each customer
  class complies with requirements of the independent organization
  for ensuring reliability and adequacy of the regional electric
  network. The load participation must be designed and implemented
  in a manner to increase market efficiency, competition, and
  customer benefits.
         SECTION 2.  Subsection (b), Section 39.905, Utilities Code,
  is amended to read as follows:
         (b)  The commission shall provide oversight and adopt rules
  and procedures to ensure that the utilities can achieve the goal of
  this section, including:
               (1)  establishing an energy efficiency cost recovery
  factor for ensuring timely and reasonable cost recovery for utility
  expenditures made to satisfy the goal of this section;
               (2)  establishing an incentive under Section 36.204 to
  reward utilities administering programs under this section that
  exceed the minimum goals established by this section;
               (3)  providing a utility that is unable to establish an
  energy efficiency cost recovery factor in a timely manner due to a
  rate freeze with a mechanism to enable the utility to:
                     (A)  defer the costs of complying with this
  section; and
                     (B)  recover the deferred costs through an energy
  efficiency cost recovery factor on the expiration of the rate
  freeze period;
               (4)  ensuring that the costs associated with programs
  provided under this section and any shareholder bonus awarded are
  borne by the customer classes that receive the services under the
  programs;
               (5)  ensuring the program rules encourage the value of
  the incentives to be passed on to the end-use customer; and
               (6)  ensuring that programs are evaluated, measured,
  and verified using a framework established by the commission that
  promotes effective program design and consistent and streamlined
  reporting[; and
               [(7)     ensuring that an independent organization
  certified under Section 39.151 allows load participation in all
  energy markets for residential, commercial, and industrial
  customer classes, either directly or through aggregators of retail
  customers, to the extent that load participation by each of those
  customer classes complies with reasonable requirements adopted by
  the organization relating to the reliability and adequacy of the
  regional electric network and in a manner that will increase market
  efficiency, competition, and customer benefits].
         SECTION 3.  This Act takes effect September 1, 2013.