Texas House Bill HB3362

Texas 2021 - 87th Regular

Caption

Relating to the provision of electricity service in this state.

Impact

By instituting demand response programs, HB3362 aims to enhance the reliability of electricity service during critical times, particularly in situations of low operating reserves that may lead to rolling outages. It also ensures that residential customers are actively engaged in managing electricity consumption through programs facilitated by their retail providers. These programs are designed to be inclusive, ensuring that participation does not adversely affect vulnerable populations while also promoting smart metering technology to foster a more responsive energy grid.

Summary

House Bill 3362 addresses the provision of electricity services within Texas, specifically focusing on the establishment of protocols for managing peak electricity demand and ensuring reliable service during emergencies. This bill mandates the Public Utility Commission to implement a set of regulations requiring retail electric providers in the ERCOT (Electric Reliability Council of Texas) power region to create residential demand response programs aimed at reducing the average total residential load over a defined timeline. The goals of the program include a gradual reduction target rising to five percent of peak demand by 2025, promoting energy efficiency among residential consumers.

Contention

The discussions surrounding HB3362 may revolve around concerns regarding the feasibility of achieving the demand reduction targets and the obligations placed on retail electric providers. Stakeholders have raised points about the financial and logistical impacts of implementing these programs, particularly for smaller providers. Critics may be concerned about the effectiveness of the bill in truly alleviating risk during peak demand periods and the adequacy of protections for consumers, including measures for notifying them of potential outages and maintaining service levels during emergencies.