Texas 2023 - 88th Regular

Texas Senate Bill SB1699 Compare Versions

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Version 2 (New)

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1	1	S.B. No. 1699
2	2
3	3
4	4	AN ACT
5	5	relating to electricity service in the ERCOT power region,
6	6	including the participation of aggregated distributed energy
7	7	resources in the ERCOT market.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 31.002(17), Utilities Code, is amended
10	10	to read as follows:
11	11	(17) "Retail electric provider" means a person that
12	12	sells electric energy to retail customers in this state. A retail
13	13	electric provider may not own or operate generation assets but may
14	14	aggregate distributed energy resources under Section 39.3515. The
15	15	term does not include a person not otherwise a retail electric
16	16	provider who owns or operates equipment used solely to provide
17	17	electricity charging service for consumption by an alternatively
18	18	fueled vehicle, as defined by Section 502.004, Transportation Code.
19	19	SECTION 2. Section 39.101(b), Utilities Code, is amended to
20	20	read as follows:
21	21	(b) A customer is entitled:
22	22	(1) to be informed about rights and opportunities in
23	23	the transition to a competitive electric industry;
24	24	(2) to choose the customer's retail electric provider
25	25	consistent with this chapter, to have that choice honored, and to
26	26	assume that the customer's chosen provider will not be changed
27	27	without the customer's informed consent;
28	28	(3) to have access to providers of energy efficiency
29	29	services, to on-site distributed generation, and to providers of
30	30	energy generated by renewable energy resources;
31	31	(4) to be served by a provider of last resort that
32	32	offers a commission-approved standard service package;
33	33	(5) to receive sufficient information to make an
34	34	informed choice of service provider;
35	35	(6) to be protected from unfair, misleading, or
36	36	deceptive practices, including protection from being billed for
37	37	services that were not authorized or provided; [and]
38	38	(7) to have an impartial and prompt resolution of
39	39	disputes with its chosen retail electric provider and transmission
40	40	and distribution utility;
41	41	(8) to participation in demand response programs
42	42	through retail electric providers that offer demand response
43	43	programs; and
44	44	(9) to receive notice from the retail electric
45	45	provider that serves the customer when the independent organization
46	46	certified under Section 39.151 for the ERCOT power region issues an
47	47	emergency energy alert.
48	48	SECTION 3. Section 39.351, Utilities Code, is amended by
49	49	amending Subsection (a) and adding Subsection (a-1) to read as
50	50	follows:
51	51	(a) A person may not generate electricity unless:
52	52	(1) the person is registered with the commission as a
53	53	power generation company in accordance with this section; or
54	54	(2) the electricity is generated as part of a
55	55	registered aggregate distributed energy resource under Section
56	56	39.3515.
57	57	(a-1) A person may register as a power generation company by
58	58	filing the following information with the commission:
59	59	(1) a description of the location of any facility used
60	60	to generate electricity;
61	61	(2) a description of the type of services provided;
62	62	(3) a copy of any information filed with the Federal
63	63	Energy Regulatory Commission in connection with registration with
64	64	that commission; and
65	65	(4) any other information required by commission rule,
66	66	provided that in requiring that information the commission shall
67	67	protect the competitive process in a manner that ensures the
68	68	confidentiality of competitively sensitive information.
69	69	SECTION 4. Subchapter H, Chapter 39, Utilities Code, is
70	70	amended by adding Section 39.3515 to read as follows:
71	71	Sec. 39.3515. AGGREGATE DISTRIBUTED ENERGY RESOURCES. (a)
72	72	A person who aggregates distributed energy resources:
73	73	(1) is not required to register as a power generation
74	74	company to aggregate the resources;
75	75	(2) shall comply with rules, guidelines, and
76	76	registration requirements established by the commission and by
77	77	Chapter 17 and this chapter; and
78	78	(3) remains accountable for compliance with the
79	79	applicable statutes and rules by a subcontractor, an agent, or any
80	80	other entity compensated by the person for activities conducted on
81	81	the person's behalf.
82	82	(b) The commission may establish rules and registration
83	83	requirements for the aggregation of distributed energy resources.
84	84	SECTION 5. Subchapter Z, Chapter 39, Utilities Code, is
85	85	amended by adding Section 39.919 to read as follows:
86	86	Sec. 39.919. AVERAGE TOTAL RESIDENTIAL LOAD REDUCTION
87	87	GOALS. (a) The commission by rule shall establish goals in the
88	88	ERCOT power region to reduce the average total residential load.
89	89	(b) The rules adopted under Subsection (a) must provide for
90	90	the adoption of a program that:
91	91	(1) provides demand response participation to
92	92	residential customers where reasonably available;
93	93	(2) promotes the use of smart metering technology;
94	94	(3) is capable of responding to an emergency energy
95	95	alert about low operating reserves issued by the independent
96	96	organization certified under Section 39.151 for the ERCOT power
97	97	region;
98	98	(4) provides opportunities for demand response
99	99	providers to contract with retail electric providers to provide
100	100	demand response services;
101	101	(5) ensures the program does not impact the critical
102	102	needs of vulnerable populations;
103	103	(6) facilitates the widespread deployment of smart
104	104	responsive appliances and devices in a manner that enables the
105	105	customer's appliance or device to be enrolled as part of a demand
106	106	response product or plan offered by a retail electric provider;
107	107	(7) establishes the method by which the components of
108	108	the ratio described by Subsection (c) are calculated for purposes
109	109	of determining whether the goals described by Subsection (a) have
110	110	been achieved;
111	111	(8) provides for achievement of demand reductions
112	112	within both summer and winter seasons; and
113	113	(9) allows a retail electric provider that offers a
114	114	demand response program under this section to obtain funding for
115	115	the demand response program through an energy efficiency incentive
116	116	program established under Section 39.905 if the program complies
117	117	with commission requirements related to the evaluation,
118	118	measurement, and verification of demand response programs adopted
119	119	under Section 39.905.
120	120	(c) The goals described by Subsection (a) must be calculated
121	121	as a ratio by dividing the amount of load reduced at peak demand by
122	122	the total amount of demand, at the same time, of all residential
123	123	customers who have responsive appliances or devices at their
124	124	premises that reduce the electric consumption of the customers.
125	125	(d) A transmission and distribution utility required to
126	126	provide an energy efficiency incentive program under Section 39.905
127	127	may use up to 10 percent of the budgeted spending for demand
128	128	response programs on the programs described by Subsection (b)(9).
129	129	SECTION 6. The Public Utility Commission of Texas shall
130	130	adopt rules as necessary for the adoption of a program to begin
131	131	facilitating the widespread deployment of appliances and devices
132	132	capable of being part of a demand response product or plan offered
133	133	by a retail electric provider, as provided by Section 39.919(b)(6),
134	134	Utilities Code, as added by this Act, before December 31, 2024.
135	135	SECTION 7. This Act takes effect September 1, 2023.
136	136	______________________________ ______________________________
137	137	President of the Senate Speaker of the House
138	138	I hereby certify that S.B. No. 1699 passed the Senate on
139	139	April 12, 2023, by the following vote: Yeas 31, Nays 0; and that
140	140	the Senate concurred in House amendments on May 28, 2023, by the
141	141	following vote: Yeas 31, Nays 0.
142	142	______________________________
143	143	Secretary of the Senate
144	144	I hereby certify that S.B. No. 1699 passed the House, with
145	145	amendments, on May 23, 2023, by the following vote: Yeas 145,
146	146	Nays 0, one present not voting.
147	147	______________________________
148	148	Chief Clerk of the House
149	149	Approved:
150	150	______________________________
151	151	Date
152	152	______________________________
153	153	Governor