By: Watson S.B. No. 1280 (In the Senate - Filed March 6, 2013; March 13, 2013, read first time and referred to Committee on Business and Commerce; April 11, 2013, reported adversely, with favorable Committee Substitute by the following vote: Yeas 7, Nays 2; April 11, 2013, sent to printer.) COMMITTEE SUBSTITUTE FOR S.B. No. 1280 By: Watson A BILL TO BE ENTITLED AN ACT relating to attaining reserve capacity margins in power regions to meet expected peak demand. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 39, Utilities Code, is amended by adding Section 39.161 to read as follows: Sec. 39.161. POWER REGION RESERVE MARGIN. (a) Not later than July 1 of each year, the independent organization certified under Section 39.151 for each power region shall study and project for the following year the: (1) anticipated and installed generation capacity located in or capable of delivering electricity to the power region; (2) expected peak demand in the power region; and (3) amount of reserve capacity necessary to maintain a reliability standard set by the commission for the power region. (b) If the independent organization determines under Subsection (a) that the amount of reserve capacity available for the following year will not maintain the reliability standard relative to the expected peak demand and a capacity deficit may occur, the organization shall acquire incremental capacity through opt-in load participation programs, with at least 20 percent of the incremental capacity being attained from each of the following classes: (1) residential; (2) commercial; and (3) industrial. SECTION 2. This Act takes effect September 1, 2013. * * * * *