Texas House Bill HB2359

Texas 2021 - 87th Regular

Caption

Relating to energy efficiency goals for electric utilities.

Impact

The proposed changes will amend Section 39.905 of the Utilities Code, which governs electric utilities' obligations regarding energy demand and savings. The introduction of defined annual savings goals represents a significant step towards pushing utilities toward more sustainable and efficient practices. Additionally, the bill entails that the Public Utility Commission of Texas will be responsible for establishing and overseeing these goals, ensuring compliance among utility providers.

Summary

House Bill 2359 introduces new energy efficiency goals specifically tailored for electric utilities in Texas. The bill mandates incremental annual energy savings targets for utilities, beginning with one-fourth of one percent for the year 2022, and gradually increasing to one percent by 2025. This bill aims to enhance the overall energy efficiency framework within the state, ensuring that electric utilities contribute actively to energy conservation efforts.

Contention

While the bill is expected to promote energy efficiency in Texas, it may face criticism regarding its implementation. The requirement for utilities to meet stringent energy savings goals might lead to increased operational costs. To address potential challenges, the Public Utility Commission is given the authority to set cost caps and possibly offer exceptions for utilities that struggle to meet these savings targets in a cost-effective manner. This aspect of the bill may be a point of debate, balancing the aim of energy efficiency with the financial viability of utility providers.