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A BILL TO BE ENTITLED
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AN ACT
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relating to energy efficiency incentive programs administered by |
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electric utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.905, Utilities Code, is amended by |
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amending Subsections (a), (d), and (e) and adding Subsection (a-1) |
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to read as follows: |
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(a) It is the goal of the legislature that: |
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(1) electric utilities will administer energy savings |
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incentive programs in a market-neutral, nondiscriminatory manner |
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but will not offer underlying competitive services; |
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(2) all customers, in all customer classes, have a |
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choice of, year-round [and] access to, and assistance in choosing |
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energy efficiency alternatives, incentive programs, and other |
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choices from the market that allow each customer to reduce energy |
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consumption, peak demand, or energy costs; [and] |
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(3) each electric utility will provide, through |
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market-based standard offer programs or limited, targeted, |
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market-transformation programs, incentives sufficient for retail |
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electric providers and competitive energy service providers to |
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acquire additional cost-effective energy efficiency equivalent to |
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at least 10 percent of the electric utility's annual growth in |
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demand; and |
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(4) each electric utility will promote demand response |
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programs to all customer classes. |
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(a-1) The commission shall: |
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(1) ensure timely and reasonable cost recovery for |
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utility expenditures made to acquire cost-effective energy |
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efficiency to meet the goal provided by Subsection (a), provided |
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that the amount a utility recovers in a period may not be greater |
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than an amount equal to 100 percent above the utility's efficiency |
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program expenditures for the previous period; |
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(2) establish a performance incentive for utilities |
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that make an additional three percent incremental expenditure to |
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acquire energy efficiency above the goal provided by Subsection |
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(a)(3); and |
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(3) identify in the report provided under Section |
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31.003 any potential barriers to acquiring additional increases in |
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energy efficiency and any statutory changes necessary to eliminate |
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those barriers. |
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(d) The commission shall adopt the following |
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market-transformation program options that the utilities may |
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choose to implement in order to satisfy the goal in Subsection |
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(a)(3): |
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(1) energy-smart schools; |
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(2) appliance retirement and recycling; |
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(3) air conditioning system tune-ups; [and] |
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(4) the use of trees or other landscaping for energy |
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efficiency; |
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(5) providing energy monitoring equipment to |
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customers to allow the customers a better understanding of the |
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amount and time of energy use; and |
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(6) customer energy management and demand response |
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controls. |
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(e) An electric utility may use money approved by the |
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commission for energy efficiency programs to perform necessary |
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research and development to foster continuous improvement and |
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innovation in the application of energy efficiency technology and |
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energy efficiency program design and implementation. Money the |
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utility uses under this subsection may not exceed 10 percent of the |
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amount the commission approved for energy efficiency programs in |
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the utility's most recent full rate proceeding. |
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SECTION 2. This Act takes effect September 1, 2007. |