Texas 2015 - 84th Regular

Texas House Bill HB3343 Compare Versions

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11 By: Turner of Harris H.B. No. 3343
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44 A BILL TO BE ENTITLED
55 AN ACT
66 relating to the development of electricity demand response
77 programs.
88 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. Section 39.101(b), Utilities Code, is amended to
1010 read as follows:
1111 (b) A customer is entitled:
1212 (1) to be informed about rights and opportunities in
1313 the transition to a competitive electric industry;
1414 (2) to choose the customer's retail electric provider
1515 consistent with this chapter, to have that choice honored, and to
1616 assume that the customer's chosen provider will not be changed
1717 without the customer's informed consent;
1818 (3) to have access to providers of energy efficiency
1919 services, to on-site distributed generation, [and] to providers of
2020 energy generated by renewable energy resources, and to
2121 participation in demand response through demand response
2222 providers;
2323 (4) to be served by a provider of last resort that
2424 offers a commission-approved standard service package;
2525 (5) to receive sufficient information to make an
2626 informed choice of service provider;
2727 (6) to be protected from unfair, misleading, or
2828 deceptive practices, including protection from being billed for
2929 services that were not authorized or provided; and
3030 (7) to have an impartial and prompt resolution of
3131 disputes with its chosen retail electric provider and transmission
3232 and distribution utility.
3333 SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is
3434 amended by adding Section 39.9053 to read as follows:
3535 Sec. 39.9053. DEMAND RESPONSE IN ERCOT. (a) The
3636 legislature finds that electricity markets function most
3737 efficiently when supply side and demand side resources both
3838 contribute to the adequacy of the electric system. The legislature
3939 also finds that ERCOT has not yet achieved its potential for demand
4040 response, and, therefore, it is the policy of this state to promote
4141 the development of demand response to its maximum potential and to
4242 eliminate unnecessary barriers to demand response participation in
4343 ERCOT.
4444 (b) In this section:
4545 (1) "Demand response" means changes in electric usage
4646 by customers from their normal consumption patterns in response to:
4747 (A) changes in the price of electricity use over
4848 time; or
4949 (B) incentive payments designed to induce lower
5050 electricity use at times of high wholesale market prices or when the
5151 system reliability is jeopardized.
5252 (2) "Demand response provider" means a competitive
5353 energy services provider that aggregates customer load reduction
5454 capabilities, including reliability demand response capability,
5555 and offers those capabilities into an electricity market or
5656 program.
5757 (3) "Reliability demand response" means demand
5858 response to be dispatched by an independent system operator or a
5959 distribution utility in response to an electric grid reliability
6060 issue.
6161 (c) The commission by rule shall:
6262 (1) require the independent organization certified
6363 under Section 39.151 for the ERCOT region to provide the commission
6464 not less frequently than December 1 of each odd-numbered year with
6565 an analysis of the potential demand response opportunity and
6666 penetration in the ERCOT region;
6767 (2) promote development of demand response
6868 participation by customers in all customer classes;
6969 (3) remove barriers to demand response participation
7070 for demand response providers and for customers in all customer
7171 classes;
7272 (4) ensure that customers in all customer classes have
7373 the option to contract for participation in demand response either
7474 directly with one or more demand response providers, including
7575 retail electric providers, with scheduling entities qualified by
7676 the independent system operator, or with a combination of entities
7777 consisting of the independent system operator and one or more
7878 demand response providers;
7979 (5) establish and encourage markets, products,
8080 programs, or services for reliability demand response and other
8181 forms of demand response in wholesale and retail markets; and
8282 (6) provide opportunities for demand response
8383 providers and customers to participate in wholesale energy markets
8484 and ancillary services markets on a comparable basis with other
8585 resources, while accommodating differences in operational
8686 capabilities of various customer loads among customer classes,
8787 including but not limited to differences related to availability,
8888 dispatch notification timelines, curtailment response times, ramp
8989 rates, curtailment duration, and times required to return to
9090 service following an outage.
9191 SECTION 3. The Public Utility Commission of Texas shall
9292 adopt rules as necessary to implement Section 39.9053, Utilities
9393 Code, as added by this Act, not later than May 1, 2016.
9494 SECTION 4. This Act takes effect immediately if it receives
9595 a vote of two-thirds of all the members elected to each house, as
9696 provided by Section 39, Article III, Texas Constitution. If this
9797 Act does not receive the vote necessary for immediate effect, this
9898 Act takes effect September 1, 2015.