79R7935 JJT-F

By:  Armbrister                                                   S.B. No. 1172

relating to energy conservation and efficiency. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 39.903(e), Utilities Code, as amended by Chapters 1394, 1451, and 1466, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows: (e) The system benefit fund shall provide funding solely for the following regulatory purposes and in the following order of priority: (1) programs to assist low-income electric customers by providing the 10 percent reduced rate prescribed by Subsection (h); (2) customer education programs, including programs designed to educate residential and business customers about cost savings and other benefits of energy efficiency and conservation, administrative expenses incurred by the commission in implementing and administering this chapter, and expenses incurred by the office under this chapter; (3) programs to assist low-income electric customers by providing the targeted energy efficiency programs described by Subsection (f)(2); (4) the school funding loss mechanism provided by Section 39.901; and (5) programs to assist low-income electric customers by providing the 20 percent reduced rate prescribed by Subsection (h). SECTION 2. 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) each electric utility will provide, through market-based standard offer programs or limited, targeted, market-transformation programs, incentives sufficient for retail electric providers and competitive energy service providers to acquire additional cost-effective energy efficiency equivalent to at least 15 [10] percent of 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, 2004]. SECTION 3. This Act takes effect September 1, 2005.