By: Ellis S.B. No. 1191
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to this state's goal for reducing statewide peak electric
  demand through demand response and load management programs.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 39.905(a), Utilities Code, is amended to
  read as follows:
         (a)  It is the goal of the legislature that:
               (1)  electric utilities will administer energy
  efficiency incentive programs in a market-neutral,
  nondiscriminatory manner but will not offer underlying competitive
  services;
               (2)  all customers, in all customer classes, will have
  a choice of and access to energy efficiency alternatives and other
  choices from the market that allow each customer to reduce energy
  consumption, peak demand, or energy costs;
               (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 for
  residential and commercial customers equivalent to at least:
                     (A)  10 percent of the electric utility's annual
  growth in demand of residential and commercial customers by
  December 31, 2007;
                     (B)  15 percent of the electric utility's annual
  growth in demand of residential and commercial customers by
  December 31, 2008, provided that the electric utility's program
  expenditures for 2008 funding may not be greater than 75 percent
  above the utility's program budget for 2007 for residential and
  commercial customers, as included in the April 1, 2006, filing; and
                     (C)  20 percent of the electric utility's annual
  growth in demand of residential and commercial customers by
  December 31, 2009, provided that the electric utility's program
  expenditures for 2009 funding may not be greater than 150 percent
  above the utility's program budget for 2007 for residential and
  commercial customers, as included in the April 1, 2006, filing;
               (4)  each electric utility in the ERCOT region shall
  use its best efforts to encourage and facilitate the involvement of
  the region's retail electric providers in the delivery of
  efficiency programs and demand response programs under this
  section;
               (5)  retail electric providers in the ERCOT region, and
  electric utilities outside of the ERCOT region, shall provide
  customers with energy efficiency educational materials; [and]
               (6)  notwithstanding Subsection (a)(3), electric
  utilities shall continue to make available, at 2007 funding and
  participation levels, any load management standard offer programs
  developed for industrial customers and implemented prior to May 1,
  2007; and
               (7)  each electric utility shall implement load
  management and demand response programs sufficient to achieve, in
  addition to any reduction resulting from a program in existence on
  January 1, 2009, reductions in that utility's peak demand in
  amounts equivalent to at least:
                     (A)  one percent by December 31, 2010;
                     (B)  two percent by December 31, 2012;
                     (C)  three percent by December 31, 2014;
                     (D)  four percent by December 31, 2016; and
                     (E)  five percent by December 31, 2018.
         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, 2009.