By Longoria                                           H.B. No. 3187
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the role of utilities in the administration and funding
 1-3     of energy efficiency related customer programs.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Amend Subtitle B, Title 2, Utilities, Section
 1-6     36.204 as follows:
 1-7           Sec. 36.204.  COST RECOVERY AND INCENTIVES.  (1)  In
 1-8     establishing rates for an electric utility [not required to file an
 1-9     integrated resource plan], the commission may:
1-10                 [(1)] (a)  Allow timely recovery of the reasonable
1-11     costs of conservation, load management, and purchased power,
1-12     notwithstanding Section 36.201; and
1-13                 [(2)] (b)  Authorize additional incentives for
1-14     conversation, load management, purchased power, and renewable
1-15     resources.
1-16           (2)  It is the intent of the legislature that:
1-17                 (a)  Utilities administer customer information and
1-18     energy savings incentive programs in a market-neutral,
1-19     non-discriminatory manner;
1-20                 (b)  All customers, in all customer classes, have a
1-21     choice of and access to energy efficiency alternatives and other
 2-1     choices that allow each customer to reduce energy consumption and
 2-2     reduce energy costs, as well as an open choice of provider,
 2-3                 (c)  Utilities may offer loans at below market interest
 2-4     rates for energy efficiency investments, other energy efficiency
 2-5     market transformation programs which result in below market cost,
 2-6     and grants and other special programs, to address the needs of
 2-7     small businesses, tenants, low-income consumers and other customer
 2-8     groups not served by market-based incentive programs;
 2-9                 (d)  Utilities shall acquire through market-based
2-10     standard offer programs or targeted market transformation programs,
2-11     additional energy efficiency, equivalent to at least 25% of each
2-12     year's annual growth in demand; and
2-13           SECTION 2.  By not later than January 1, 2000, the PUC shall
2-14     have established rules necessary to carry out, and oversee the
2-15     implementation of, the provisions of Section 1 of this Act.
2-16           SECTION 3.  This Act takes effect September 1, 1999.
2-17           SECTION 4.  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.