1 | 1 | | 82R21783 ALL-D |
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2 | 2 | | By: Anchia H.B. No. 1629 |
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3 | 3 | | Substitute the following for H.B. No. 1629: |
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4 | 4 | | By: Lozano C.S.H.B. No. 1629 |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to energy efficiency goals and programs, public |
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10 | 10 | | information regarding energy efficiency programs, and the |
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11 | 11 | | participation of loads in certain energy markets. |
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12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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13 | 13 | | SECTION 1. Section 39.905, Utilities Code, is amended by |
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14 | 14 | | amending Subsections (a) and (b) and adding Subsections (h), (i), |
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15 | 15 | | (j), and (k) to read as follows: |
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16 | 16 | | (a) It is the goal of the legislature that: |
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17 | 17 | | (1) electric utilities will administer energy |
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18 | 18 | | efficiency incentive programs in a market-neutral, |
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19 | 19 | | nondiscriminatory manner but will not offer underlying competitive |
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20 | 20 | | services; |
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21 | 21 | | (2) all customers, in all customer classes, will have |
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22 | 22 | | a choice of and access to energy efficiency alternatives and other |
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23 | 23 | | choices from the market that allow each customer to reduce energy |
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24 | 24 | | consumption, summer and winter peak demand, or energy costs; |
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25 | 25 | | (3) each electric utility annually will provide, |
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26 | 26 | | through market-based standard offer programs or through [limited,] |
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27 | 27 | | targeted[,] market-transformation programs, incentives sufficient |
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28 | 28 | | for retail electric providers and competitive energy service |
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29 | 29 | | providers to acquire additional cost-effective energy efficiency, |
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30 | 30 | | subject to cost ceilings established by the commission, for the |
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31 | 31 | | utility's residential and commercial customers equivalent to [at |
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32 | 32 | | least]: |
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33 | 33 | | (A) not less than: |
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34 | 34 | | (i) 30 [10] percent of the electric |
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35 | 35 | | utility's annual growth in demand of residential and commercial |
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36 | 36 | | customers by December 31 of each year beginning with the 2013 |
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37 | 37 | | calendar year; and |
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38 | 38 | | (ii) the amount of energy efficiency to be |
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39 | 39 | | acquired for the utility's residential and commercial customers for |
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40 | 40 | | the most recent preceding year [, 2007]; and |
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41 | 41 | | (B) for an electric utility whose amount of |
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42 | 42 | | energy efficiency to be acquired under this subsection is |
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43 | 43 | | equivalent to at least four-tenths of one percent of the electric |
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44 | 44 | | utility's summer weather-adjusted peak demand for residential and |
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45 | 45 | | commercial customers in the previous calendar year, not less than: |
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46 | 46 | | (i) four-tenths of one percent of the |
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47 | 47 | | utility's summer weather-adjusted peak demand for residential and |
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48 | 48 | | commercial customers by December 31 of each subsequent year; and |
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49 | 49 | | (ii) the amount of energy efficiency to be |
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50 | 50 | | acquired for the utility's residential and commercial customers for |
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51 | 51 | | the most recent preceding year [15 percent of the electric |
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52 | 52 | | utility's annual growth in demand of residential and commercial |
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53 | 53 | | customers by December 31, 2008, provided that the electric |
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54 | 54 | | utility's program expenditures for 2008 funding may not be greater |
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55 | 55 | | than 75 percent above the utility's program budget for 2007 for |
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56 | 56 | | residential and commercial customers, as included in the April 1, |
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57 | 57 | | 2006, filing; and |
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58 | 58 | | [(C) 20 percent of the electric utility's annual |
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59 | 59 | | growth in demand of residential and commercial customers by |
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60 | 60 | | December 31, 2009, provided that the electric utility's program |
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61 | 61 | | expenditures for 2009 funding may not be greater than 150 percent |
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62 | 62 | | above the utility's program budget for 2007 for residential and |
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63 | 63 | | commercial customers, as included in the April 1, 2006, filing]; |
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64 | 64 | | (4) each electric utility in the ERCOT region shall |
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65 | 65 | | use its best efforts to encourage and facilitate the involvement of |
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66 | 66 | | the region's retail electric providers in the delivery of |
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67 | 67 | | efficiency programs and demand response programs under this |
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68 | 68 | | section, including programs for demand-side renewable energy |
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69 | 69 | | systems that: |
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70 | 70 | | (A) use distributed renewable generation, as |
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71 | 71 | | defined by Section 39.916; or |
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72 | 72 | | (B) reduce the need for energy consumption by |
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73 | 73 | | using a renewable energy technology, a geothermal heat pump, a |
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74 | 74 | | solar water heater, or another natural mechanism of the |
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75 | 75 | | environment; |
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76 | 76 | | (5) retail electric providers in the ERCOT region, and |
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77 | 77 | | electric utilities outside of the ERCOT region, shall provide |
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78 | 78 | | customers with energy efficiency educational materials; and |
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79 | 79 | | (6) notwithstanding Subsection (a)(3), electric |
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80 | 80 | | utilities shall continue to make available, at 2007 funding and |
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81 | 81 | | participation levels, any load management standard offer programs |
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82 | 82 | | developed for industrial customers and implemented prior to May 1, |
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83 | 83 | | 2007. |
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84 | 84 | | (b) The commission shall provide oversight and adopt rules |
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85 | 85 | | and procedures to ensure that the utilities can achieve the goal of |
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86 | 86 | | this section, including: |
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87 | 87 | | (1) establishing an energy efficiency cost recovery |
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88 | 88 | | factor for ensuring timely and reasonable cost recovery for utility |
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89 | 89 | | expenditures made to satisfy the goal of this section; |
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90 | 90 | | (2) establishing an incentive under Section 36.204 to |
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91 | 91 | | reward utilities administering programs under this section that |
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92 | 92 | | exceed the minimum goals established by this section; |
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93 | 93 | | (3) providing a utility that is unable to establish an |
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94 | 94 | | energy efficiency cost recovery factor in a timely manner due to a |
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95 | 95 | | rate freeze with a mechanism to enable the utility to: |
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96 | 96 | | (A) defer the costs of complying with this |
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97 | 97 | | section; and |
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98 | 98 | | (B) recover the deferred costs through an energy |
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99 | 99 | | efficiency cost recovery factor on the expiration of the rate |
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100 | 100 | | freeze period; |
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101 | 101 | | (4) ensuring that the costs associated with programs |
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102 | 102 | | provided under this section and any shareholder bonus awarded are |
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103 | 103 | | borne by the customer classes that receive the services under the |
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104 | 104 | | programs; [and] |
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105 | 105 | | (5) ensuring the program rules encourage the value of |
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106 | 106 | | the incentives to be passed on to the end-use customer; |
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107 | 107 | | (6) ensuring that programs are evaluated, measured, |
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108 | 108 | | and verified using a framework established by the commission that |
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109 | 109 | | promotes effective program design and consistent and streamlined |
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110 | 110 | | reporting; and |
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111 | 111 | | (7) ensuring that an independent organization |
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112 | 112 | | certified under Section 39.151 allows load participation in all |
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113 | 113 | | energy markets for residential, commercial, and industrial |
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114 | 114 | | customer classes, either directly or through aggregators of retail |
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115 | 115 | | customers, to the extent that load participation by each of those |
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116 | 116 | | customer classes complies with reasonable requirements adopted by |
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117 | 117 | | the organization relating to the reliability and adequacy of the |
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118 | 118 | | regional electric network and in a manner that will increase market |
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119 | 119 | | efficiency, competition, and customer benefits. |
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120 | 120 | | (h) For an electric utility operating in an area not open to |
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121 | 121 | | competition, the utility may achieve the goal of this section by: |
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122 | 122 | | (1) providing rebate or incentive funds directly to |
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123 | 123 | | customers to promote or facilitate the success of programs |
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124 | 124 | | implemented under this section; or |
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125 | 125 | | (2) developing, subject to commission approval, new |
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126 | 126 | | programs other than standard offer programs and market |
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127 | 127 | | transformation programs, to the extent that the new programs |
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128 | 128 | | satisfy the same cost-effectiveness requirements as standard offer |
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129 | 129 | | programs and market transformation programs. |
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130 | 130 | | (i) For an electric utility operating in an area open to |
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131 | 131 | | competition, on demonstration to the commission, after a contested |
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132 | 132 | | case hearing, that the requirements under Subsection (a) cannot be |
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133 | 133 | | met in a rural area through retail electric providers or |
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134 | 134 | | competitive energy service providers, the utility may achieve the |
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135 | 135 | | goal of this section by providing rebate or incentive funds |
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136 | 136 | | directly to customers in the rural area to promote or facilitate the |
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137 | 137 | | success of programs implemented under this section. |
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138 | 138 | | (j) An electric utility may use energy audit programs to |
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139 | 139 | | achieve the goal of this section if: |
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140 | 140 | | (1) the programs do not constitute more than three |
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141 | 141 | | percent of total program costs under this section; and |
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142 | 142 | | (2) the addition of the programs does not cause a |
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143 | 143 | | utility's portfolio of programs to no longer be cost-effective. |
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144 | 144 | | (k) To help a residential or nongovernmental nonprofit |
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145 | 145 | | customer make informed decisions regarding energy efficiency, the |
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146 | 146 | | commission may consider program designs that ensure, to the extent |
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147 | 147 | | practicable, the customer is provided with information using |
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148 | 148 | | standardized forms and terms that allow the customer to compare |
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149 | 149 | | offers for varying degrees of energy efficiency attainable using a |
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150 | 150 | | measure the customer is considering by cost, estimated energy |
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151 | 151 | | savings, and payback periods. |
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152 | 152 | | SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is |
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153 | 153 | | amended by adding Section 39.9054 to read as follows: |
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154 | 154 | | Sec. 39.9054. ENERGY EFFICIENCY PLANS AND REPORTS; PUBLIC |
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155 | 155 | | INFORMATION. (a) An electric utility shall submit electronically |
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156 | 156 | | an energy efficiency plan and report in a searchable form |
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157 | 157 | | prescribed by the commission on or before April 1 of each year. The |
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158 | 158 | | commission by rule shall adopt a form that will permit the public to |
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159 | 159 | | easily compare information submitted by different electric |
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160 | 160 | | utilities. The plan and report must: |
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161 | 161 | | (1) provide information on the utility's performance |
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162 | 162 | | in achieving energy efficiency goals for the previous five years; |
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163 | 163 | | (2) describe how the utility intends to achieve future |
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164 | 164 | | goals; and |
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165 | 165 | | (3) provide any other information the commission |
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166 | 166 | | considers relevant. |
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167 | 167 | | (b) On the Internet website found at |
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168 | 168 | | http://www.puc.state.tx.us, the commission shall publish |
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169 | 169 | | information on energy efficiency programs, including: |
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170 | 170 | | (1) an explanation of the goal for energy efficiency |
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171 | 171 | | in this state; |
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172 | 172 | | (2) a description of the types of energy efficiency |
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173 | 173 | | programs available to certain classes of eligible customers; |
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174 | 174 | | (3) a link to the plans and reports filed as prescribed |
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175 | 175 | | by Subsection (a); and |
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176 | 176 | | (4) a list of persons who install or provide energy |
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177 | 177 | | efficiency measures or services by area. |
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178 | 178 | | (c) This section does not require the commission to warrant |
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179 | 179 | | that the list required to be displayed under Subsection (b) |
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180 | 180 | | constitutes a complete or accurate list of all persons who install |
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181 | 181 | | energy efficiency measures or services in the marketplace. |
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182 | 182 | | SECTION 3. Section 39.905(b-2), Utilities Code, is |
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183 | 183 | | repealed. |
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184 | 184 | | SECTION 4. This Act takes effect September 1, 2011. |
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