By: Gallegos S.B. No. 1858 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED AN ACT 1-1 relating to monitoring and regulation of electric utilities in the 1-2 provision of energy efficiency products and services. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 2.216, Public Utility Regulatory Act of 1-5 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is amended 1-6 to read as follows: 1-7 Sec. 2.216. DISCRIMINATION; RESTRICTION ON COMPETITION. 1-8 (a) A public utility may not discriminate against any person or 1-9 corporation that sells or leases equipment or performs services in 1-10 competition with the public utility, nor may any public utility 1-11 engage in any other practice that tends to restrict or impair such 1-12 competition. 1-13 (b) The commission shall monitor and by rule shall regulate 1-14 the relationships among utilities and the affiliates, partners, and 1-15 ventures of utilities to ensure that a utility or a utility's 1-16 affiliates, partners, and ventures do not gain an unfair advantage 1-17 over an unaffiliated person competing in the same market to provide 1-18 customers with products or services related to energy efficiency. 1-19 (c) The commission by rule shall ensure that a utility's 1-20 incentive programs or other programs related to energy efficiency 1-21 technology or services that are directly or indirectly financed by 2-1 rate payments: 2-2 (1) allow a customer freely to choose the provider of 2-3 the energy efficiency technology or service; 2-4 (2) allow a provider of energy efficiency technology 2-5 or service to determine the provider's offerings of product or 2-6 service; 2-7 (3) promote open, continuous, and transparent market 2-8 competition among all providers of energy efficiency technology or 2-9 service; and 2-10 (4) do not place a provider of energy efficiency 2-11 technology or service at a competitive disadvantage regarding 2-12 similar products or services offered by the utility. 2-13 SECTION 2. The Public Utility Commission of Texas shall 2-14 adopt rules under Section 2.216, Public Utility Regulatory Act of 2-15 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), as amended 2-16 by this Act, not later than December 31, 1997. 2-17 SECTION 3. The importance of this legislation and the 2-18 crowded condition of the calendars in both houses create an 2-19 emergency and an imperative public necessity that the 2-20 constitutional rule requiring bills to be read on three several 2-21 days in each house be suspended, and this rule is hereby suspended, 2-22 and that this Act take effect and be in force from and after its 2-23 passage, and it is so enacted.