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A BILL TO BE ENTITLED
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AN ACT
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relating to a study of the four coincident peak program by the |
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Public Utility Commission of Texas and the independent organization |
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certified to manage the ERCOT power region. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. DEFINITIONS. In this Act: |
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(1) "Commission" means the Public Utility Commission |
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of Texas. |
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(2) "Independent organization" means the independent |
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organization certified under Section 39.151, Utilities Code, for |
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the ERCOT power region. |
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(3) "Program" means the four coincident peak program |
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used by the independent organization to calculate and assign demand |
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charges. |
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SECTION 2. STUDY. (a) The commission, in coordination with |
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the independent organization, shall conduct a study of the program. |
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The study must include: |
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(1) a review of the program's rate design, with an |
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analysis of: |
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(A) using regional data, the historic and current |
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total amount of cost shifting that occurs due to coincident peak |
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avoidance by retail electric customers who are subject to the |
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program; |
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(B) potential solutions to prevent the avoidance |
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of charges under the program by retail electric customers; and |
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(C) the effects of the program on peak demand; |
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(2) consideration of large loads with backup |
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generation on the customer's side of the meter; and |
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(3) a comparative analysis of other potential methods |
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for calculating and assigning demand charges, including methods |
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based on more frequent coincident peaks or longer coincident peak |
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periods, including a comparison of the reliability and market |
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impact of the program methodology versus other methods. |
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(b) The commission shall establish the scope of the data, |
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timeframes, and comparative methods involved in the study. |
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SECTION 3. REPORT. The commission shall prepare a report |
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with the conclusions of the study and submit the report to the |
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legislature not later than December 1, 2026. |
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SECTION 4. EXPIRATION. This Act expires January 1, 2027. |
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SECTION 5. EFFECTIVE DATE. This Act takes effect September |
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1, 2025. |