S.B. No. 1699
AN ACT
relating to electricity service in the ERCOT power region,
including the participation of aggregated distributed energy
resources in the ERCOT market.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.002(17), Utilities Code, is amended
to read as follows:
(17) "Retail electric provider" means a person that
sells electric energy to retail customers in this state. A retail
electric provider may not own or operate generation assets but may
aggregate distributed energy resources under Section 39.3515. The
term does not include a person not otherwise a retail electric
provider who owns or operates equipment used solely to provide
electricity charging service for consumption by an alternatively
fueled vehicle, as defined by Section 502.004, Transportation Code.
SECTION 2. Section 39.101(b), Utilities Code, is amended to
read as follows:
(b) A customer is entitled:
(1) to be informed about rights and opportunities in
the transition to a competitive electric industry;
(2) to choose the customer's retail electric provider
consistent with this chapter, to have that choice honored, and to
assume that the customer's chosen provider will not be changed
without the customer's informed consent;
(3) to have access to providers of energy efficiency
services, to on-site distributed generation, and to providers of
energy generated by renewable energy resources;
(4) to be served by a provider of last resort that
offers a commission-approved standard service package;
(5) to receive sufficient information to make an
informed choice of service provider;
(6) to be protected from unfair, misleading, or
deceptive practices, including protection from being billed for
services that were not authorized or provided; [and]
(7) to have an impartial and prompt resolution of
disputes with its chosen retail electric provider and transmission
and distribution utility;
(8) to participation in demand response programs
through retail electric providers that offer demand response
programs; and
(9) to receive notice from the retail electric
provider that serves the customer when the independent organization
certified under Section 39.151 for the ERCOT power region issues an
emergency energy alert.
SECTION 3. Section 39.351, Utilities Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A person may not generate electricity unless:
(1) the person is registered with the commission as a
power generation company in accordance with this section; or
(2) the electricity is generated as part of a
registered aggregate distributed energy resource under Section
39.3515.
(a-1) A person may register as a power generation company by
filing the following information with the commission:
(1) a description of the location of any facility used
to generate electricity;
(2) a description of the type of services provided;
(3) a copy of any information filed with the Federal
Energy Regulatory Commission in connection with registration with
that commission; and
(4) any other information required by commission rule,
provided that in requiring that information the commission shall
protect the competitive process in a manner that ensures the
confidentiality of competitively sensitive information.
SECTION 4. Subchapter H, Chapter 39, Utilities Code, is
amended by adding Section 39.3515 to read as follows:
Sec. 39.3515. AGGREGATE DISTRIBUTED ENERGY RESOURCES. (a)
A person who aggregates distributed energy resources:
(1) is not required to register as a power generation
company to aggregate the resources;
(2) shall comply with rules, guidelines, and
registration requirements established by the commission and by
Chapter 17 and this chapter; and
(3) remains accountable for compliance with the
applicable statutes and rules by a subcontractor, an agent, or any
other entity compensated by the person for activities conducted on
the person's behalf.
(b) The commission may establish rules and registration
requirements for the aggregation of distributed energy resources.
SECTION 5. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Section 39.919 to read as follows:
Sec. 39.919. AVERAGE TOTAL RESIDENTIAL LOAD REDUCTION
GOALS. (a) The commission by rule shall establish goals in the
ERCOT power region to reduce the average total residential load.
(b) The rules adopted under Subsection (a) must provide for
the adoption of a program that:
(1) provides demand response participation to
residential customers where reasonably available;
(2) promotes the use of smart metering technology;
(3) is capable of responding to an emergency energy
alert about low operating reserves issued by the independent
organization certified under Section 39.151 for the ERCOT power
region;
(4) provides opportunities for demand response
providers to contract with retail electric providers to provide
demand response services;
(5) ensures the program does not impact the critical
needs of vulnerable populations;
(6) facilitates the widespread deployment of smart
responsive appliances and devices in a manner that enables the
customer's appliance or device to be enrolled as part of a demand
response product or plan offered by a retail electric provider;
(7) establishes the method by which the components of
the ratio described by Subsection (c) are calculated for purposes
of determining whether the goals described by Subsection (a) have
been achieved;
(8) provides for achievement of demand reductions
within both summer and winter seasons; and
(9) allows a retail electric provider that offers a
demand response program under this section to obtain funding for
the demand response program through an energy efficiency incentive
program established under Section 39.905 if the program complies
with commission requirements related to the evaluation,
measurement, and verification of demand response programs adopted
under Section 39.905.
(c) The goals described by Subsection (a) must be calculated
as a ratio by dividing the amount of load reduced at peak demand by
the total amount of demand, at the same time, of all residential
customers who have responsive appliances or devices at their
premises that reduce the electric consumption of the customers.
(d) A transmission and distribution utility required to
provide an energy efficiency incentive program under Section 39.905
may use up to 10 percent of the budgeted spending for demand
response programs on the programs described by Subsection (b)(9).
SECTION 6. The Public Utility Commission of Texas shall
adopt rules as necessary for the adoption of a program to begin
facilitating the widespread deployment of appliances and devices
capable of being part of a demand response product or plan offered
by a retail electric provider, as provided by Section 39.919(b)(6),
Utilities Code, as added by this Act, before December 31, 2024.
SECTION 7. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1699 passed the Senate on
April 12, 2023, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendments on May 28, 2023, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1699 passed the House, with
amendments, on May 23, 2023, by the following vote: Yeas 145,
Nays 0, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor