Texas Senate Bill SB1050

Texas 2023 - 88th Regular

• Filed: 2/21/23
• Out of Senate Committee: 4/20/23
• Voted on by Senate: 4/26/23

Caption

Relating to the authority of a natural gas local distribution company to offer energy conservation programs.

Impact

The bill introduces a structured approach to energy conservation, which includes establishing cost recovery mechanisms and ongoing reporting obligations between the local distribution companies and the railroad commission. Local distribution companies will be able to recover costs incurred in implementing these programs provided they adhere to regulatory oversight by the railroad commission. The jurisdiction of the railroad commission over these programs aims to ensure that conservation efforts are effectively managed and optimized.

Summary

Senate Bill 1050 (SB1050) aims to enhance the authority of natural gas local distribution companies (LDCs) in Texas to offer energy conservation programs to their customers. By allowing these companies to promote and implement such programs, the bill seeks to make energy consumption more efficient and economically beneficial for both residential and commercial users. It is expected that the standardized programs will provide ample opportunity for Texans to invest in higher efficiency appliances and home retrofits, leading to reduced natural gas usage and an increase in available gas capacity for electric generation.

Sentiment

Overall, the sentiment around SB1050 appears positive among stakeholders, particularly among those in the energy sector. Supporters have expressed that this legislation addresses an underutilized opportunity for improving energy conservation among Texas natural gas utility customers. The measure has been corroborated by officials and representatives from companies such as Centerpoint Energy, indicating an industry consensus on the need for these conservation initiatives.

Contention

Notable points of contention may arise regarding the regulatory oversight and jurisdictional authority of the railroad commission, as it could lead to concerns over the balance of local versus state control in energy management. Critics might argue that while the goal of energy conservation is commendable, excessive regulation could stifle innovation and flexibility in how local companies implement and market their conservation programs. Additionally, the reliance on cost recovery could raise questions about the financial impact on consumers, especially those already facing high energy bills.

Texas Constitutional Statutes Affected

Utilities Code

• Chapter 104. Rates And Services
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