Bill > SB2994

This bill modifies Texas energy efficiency regulations by updating requirements for electric utilities' energy efficiency programs, with a focus on both competitive and non-competitive service areas. The bill establishes specific minimum annual demand reduction goals for utilities based on their customer base size, requiring utilities to implement cost-effective energy efficiency programs that reduce energy consumption and peak demand. Electric utilities operating in competitive areas must acquire specific kilowatt reductions and annual energy savings, with goals increasing by 2.5 percent annually through 2030. The legislation mandates that at least 15 percent of each utility's energy efficiency budget be dedicated to low-income energy efficiency programs, though utilities can request exemptions under certain circumstances. The bill also provides incentives for utilities that exceed their energy efficiency goals, with potential performance bonuses calculated based on net benefits realized. Additionally, the bill allows utilities to conduct energy efficiency research and development, offers flexibility for utilities in hard-to-reach areas, and ensures that load participation is allowed in energy markets for residential, commercial, and industrial customer classes. The Public Utility Commission of Texas is required to adopt implementing rules by March 1, 2027, with the act taking effect either immediately upon a two-thirds legislative vote or on September 1, 2025.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2994