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A BILL TO BE ENTITLED
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AN ACT
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relating to the development of electricity demand response |
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programs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.101(b), Utilities Code, is amended to |
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read as follows: |
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(b) A customer is entitled: |
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(1) to be informed about rights and opportunities in |
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the transition to a competitive electric industry; |
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(2) to choose the customer's retail electric provider |
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consistent with this chapter, to have that choice honored, and to |
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assume that the customer's chosen provider will not be changed |
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without the customer's informed consent; |
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(3) to have access to providers of energy efficiency |
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services, to on-site distributed generation, [and] to providers of |
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energy generated by renewable energy resources, and to |
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participation in demand response programs through demand response |
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providers; |
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(4) to be served by a provider of last resort that |
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offers a commission-approved standard service package; |
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(5) to receive sufficient information to make an |
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informed choice of service provider; |
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(6) to be protected from unfair, misleading, or |
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deceptive practices, including protection from being billed for |
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services that were not authorized or provided; and |
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(7) to have an impartial and prompt resolution of |
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disputes with its chosen retail electric provider and transmission |
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and distribution utility. |
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SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Section 39.9056 to read as follows: |
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Sec. 39.9056. DEMAND RESPONSE IN ERCOT. (a) The |
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legislature finds that electricity markets function most |
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efficiently when supply side and demand side resources both |
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contribute to the adequacy of the electric system. The legislature |
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also finds that ERCOT has not yet achieved its potential for demand |
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response, and, therefore, it is the policy of this state to promote |
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the development of demand response to its maximum potential and to |
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eliminate unnecessary barriers to demand response participation in |
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ERCOT. |
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(b) In this section: |
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(1) "Demand response" means changes in electric usage |
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by customers from their normal consumption patterns in response to: |
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(A) changes in the price of electricity use over |
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time; or |
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(B) incentive payments designed to induce lower |
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electricity use at times of high wholesale market prices or when the |
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system reliability is jeopardized. |
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(2) "Demand response provider" means a competitive |
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energy services provider that aggregates customer load reduction |
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capabilities, including reliability demand response capability, |
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and offers those capabilities into an electricity market or |
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program. |
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(3) "Reliability demand response" means demand |
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response to be dispatched by an independent system operator or a |
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distribution utility in response to an electric grid reliability |
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issue. |
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(c) The commission by rule shall: |
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(1) require the independent organization certified |
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under Section 39.151 for the ERCOT region to provide the commission |
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not less frequently than December 1 of each odd-numbered year with |
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an analysis of the potential demand response opportunity and |
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penetration in the ERCOT region; |
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(2) promote development of demand response |
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participation by customers in all customer classes; |
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(3) remove barriers to demand response participation |
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for demand response providers and for customers in all customer |
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classes; |
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(4) ensure that customers in all customer classes have |
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the option to contract for participation in demand response either |
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directly with one or more demand response providers, including |
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retail electric providers, with scheduling entities qualified by |
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the independent system operator, or with a combination of entities |
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consisting of the independent system operator and one or more |
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demand response providers; |
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(5) establish and encourage markets, products, |
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programs, or services for reliability demand response and other |
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forms of demand response in wholesale and retail markets; and |
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(6) provide opportunities for demand response |
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providers and customers to participate in wholesale energy markets |
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and ancillary services markets on a comparable basis with other |
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resources, while accommodating differences in operational |
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capabilities of various customer loads among customer classes, |
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including but not limited to differences related to availability, |
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dispatch notification timelines, curtailment response times, ramp |
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rates, curtailment duration, and times required to return to |
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service following an outage. |
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SECTION 3. The Public Utility Commission of Texas shall |
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adopt rules as necessary to implement Section 39.9056, Utilities |
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Code, as added by this Act, not later than May 1, 2022. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |