79R9466 MTB-F

By:  West                                                         H.B. No. 3096



A BILL TO BE ENTITLED

AN ACT

relating to the energy efficiency goal of electric utilities.                 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 39.905, Utilities Code, is amended to 
read as follows:   
	Sec. 39.905.  GOAL FOR ENERGY EFFICIENCY.  (a)  It is the 
goal of the legislature that:
		(1)  electric utilities will administer energy savings 
incentive programs in a market-neutral, nondiscriminatory manner 
but will not offer underlying competitive services;
		(2)  all customers, in all customer classes, have a 
choice of and access to energy efficiency alternatives and other 
choices from the market that allow each customer to reduce energy 
consumption and reduce energy costs; [and]
		(3)  electric utilities will support transmission and 
distribution research, development, and demonstration initiatives 
by universities in this state and by others in order to ensure that 
all customers, in all customer classes, receive the benefits of 
emerging technologies that may result in:
			(A)  the modernization of the transmission and 
distribution grid; and
			(B)  increased security, safety, reliability, and 
efficiency; and   
		(4)  each electric utility will use the amount approved 
for energy efficiency programs in the utility's most recent full 
rate proceeding before the commission as follows:
			(A)  90 percent of the money to provide[, through] 
market-based standard offer programs or limited, targeted, 
market-transformation programs designed to encourage[, incentives 
sufficient for] retail electric providers and competitive energy 
service providers to acquire additional cost-effective energy 
efficiency savings; and
			(B)  [equivalent to at least] 10 percent of the 
money for the purpose described by Subdivision (3) [the electric 
utility's annual growth in demand].
	(b)  The commission shall provide oversight and adopt rules 
and procedures, as necessary, to ensure that the goal of this 
section is achieved by January 1, 2006 [2004].
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.