S.B. No. 1699
  relating to electricity service in the ERCOT power region,
  including the participation of aggregated distributed energy
  resources in the ERCOT market.
         SECTION 1.  Section 31.002(17), Utilities Code, is amended
  to read as follows:
               (17)  "Retail electric provider" means a person that
  sells electric energy to retail customers in this state. A retail
  electric provider may not own or operate generation assets but may
  aggregate distributed energy resources under Section 39.3515. The
  term does not include a person not otherwise a retail electric
  provider who owns or operates equipment used solely to provide
  electricity charging service for consumption by an alternatively
  fueled vehicle, as defined by Section 502.004, Transportation Code.
         SECTION 2.  Section 39.101(b), Utilities Code, is amended to
  read as follows:
         (b)  A customer is entitled:
               (1)  to be informed about rights and opportunities in
  the transition to a competitive electric industry;
               (2)  to choose the customer's retail electric provider
  consistent with this chapter, to have that choice honored, and to
  assume that the customer's chosen provider will not be changed
  without the customer's informed consent;
               (3)  to have access to providers of energy efficiency
  services, to on-site distributed generation, and to providers of
  energy generated by renewable energy resources;
               (4)  to be served by a provider of last resort that
  offers a commission-approved standard service package;
               (5)  to receive sufficient information to make an
  informed choice of service provider;
               (6)  to be protected from unfair, misleading, or
  deceptive practices, including protection from being billed for
  services that were not authorized or provided; [and]
               (7)  to have an impartial and prompt resolution of
  disputes with its chosen retail electric provider and transmission
  and distribution utility;
               (8)  to participation in demand response programs
  through retail electric providers that offer demand response
  programs; and
               (9)  to receive notice from the retail electric
  provider that serves the customer when the independent organization
  certified under Section 39.151 for the ERCOT power region issues an
  emergency energy alert.
         SECTION 3.  Section 39.351, Utilities Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
         (a)  A person may not generate electricity unless:
               (1)  the person is registered with the commission as a
  power generation company in accordance with this section; or
               (2)  the electricity is generated as part of a
  registered aggregate distributed energy resource under Section
         (a-1)  A person may register as a power generation company by
  filing the following information with the commission:
               (1)  a description of the location of any facility used
  to generate electricity;
               (2)  a description of the type of services provided;
               (3)  a copy of any information filed with the Federal
  Energy Regulatory Commission in connection with registration with
  that commission; and
               (4)  any other information required by commission rule,
  provided that in requiring that information the commission shall
  protect the competitive process in a manner that ensures the
  confidentiality of competitively sensitive information.
         SECTION 4.  Subchapter H, Chapter 39, Utilities Code, is
  amended by adding Section 39.3515 to read as follows:
  A person who aggregates distributed energy resources:
               (1)  is not required to register as a power generation
  company to aggregate the resources;
               (2)  shall comply with rules, guidelines, and
  registration requirements established by the commission and by
  Chapter 17 and this chapter; and
               (3)  remains accountable for compliance with the
  applicable statutes and rules by a subcontractor, an agent, or any
  other entity compensated by the person for activities conducted on
  the person's behalf.
         (b)  The commission may establish rules and registration
  requirements for the aggregation of distributed energy resources.
         SECTION 5.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Section 39.919 to read as follows:
  GOALS. (a) The commission by rule shall establish goals in the
  ERCOT power region to reduce the average total residential load.
         (b)  The rules adopted under Subsection (a) must provide for
  the adoption of a program that:
               (1)  provides demand response participation to
  residential customers where reasonably available;
               (2)  promotes the use of smart metering technology;
               (3)  is capable of responding to an emergency energy
  alert about low operating reserves issued by the independent
  organization certified under Section 39.151 for the ERCOT power
               (4)  provides opportunities for demand response
  providers to contract with retail electric providers to provide
  demand response services;
               (5)  ensures the program does not impact the critical
  needs of vulnerable populations;
               (6)  facilitates the widespread deployment of smart
  responsive appliances and devices in a manner that enables the
  customer's appliance or device to be enrolled as part of a demand
  response product or plan offered by a retail electric provider;
               (7)  establishes the method by which the components of
  the ratio described by Subsection (c) are calculated for purposes
  of determining whether the goals described by Subsection (a) have
  been achieved;
               (8)  provides for achievement of demand reductions
  within both summer and winter seasons; and
               (9)  allows a retail electric provider that offers a
  demand response program under this section to obtain funding for
  the demand response program through an energy efficiency incentive
  program established under Section 39.905 if the program complies
  with commission requirements related to the evaluation,
  measurement, and verification of demand response programs adopted
  under Section 39.905.
         (c)  The goals described by Subsection (a) must be calculated
  as a ratio by dividing the amount of load reduced at peak demand by
  the total amount of demand, at the same time, of all residential
  customers who have responsive appliances or devices at their
  premises that reduce the electric consumption of the customers.
         (d)  A transmission and distribution utility required to
  provide an energy efficiency incentive program under Section 39.905
  may use up to 10 percent of the budgeted spending for demand
  response programs on the programs described by Subsection (b)(9).
         SECTION 6.  The Public Utility Commission of Texas shall
  adopt rules as necessary for the adoption of a program to begin
  facilitating the widespread deployment of appliances and devices
  capable of being part of a demand response product or plan offered
  by a retail electric provider, as provided by Section 39.919(b)(6),
  Utilities Code, as added by this Act, before December 31, 2024.
         SECTION 7.  This Act takes effect September 1, 2023.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 1699 passed the Senate on
  April 12, 2023, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendments on May 28, 2023, by the
  following vote: Yeas 31, Nays 0.
  Secretary of the Senate    
         I hereby certify that S.B. No. 1699 passed the House, with
  amendments, on May 23, 2023, by the following vote: Yeas 145,
  Nays 0, one present not voting.
  Chief Clerk of the House