Relating to a study of electricity demand response.
Impact
If passed, HB2127 instructs the Public Utility Commission to undertake a comprehensive study to assess the current state of participation in demand response initiatives across various customer demographics. It mandates the Commission to identify challenges faced by different customer classes in participating in these programs and to recommend legislative changes necessary to improve participation by the end of 2026. The bill is set to expire on September 1, 2027, unless extended.
Summary
House Bill 2127, introduced by Representative Bryant, seeks to conduct a study on electricity demand response in Texas. The bill defines demand response as the adjustments in electricity usage by consumers prompted by changing electricity prices or incentive payments aimed at reducing consumption during peak demand periods. The bill's purpose is to explore ways to enhance demand response programs across the state, with an emphasis on engaging retail electric customers effectively.
Contention
While the bill appears to have a focus on improving energy efficiency and addressing peak electricity demand, discussions surrounding the bill may evoke considerations of regulatory authority and the balance between consumer control and utility management. The outcomes of this study are likely to influence future legislation affecting electricity pricing and utility operations, possibly inciting differences in opinion among stakeholders about the best methods to achieve energy conservation and reliability.
Texas Constitutional Statutes Affected
Utilities Code
Chapter 39. Restructuring Of Electric Utility Industry
Relating to the continuation and functions of the Public Utility Commission of Texas and the Office of Public Utility Counsel, and the functions of the independent organization certified for the ERCOT power region; increasing an administrative penalty.
Designating the Electric Reliability Council of Texas (ERCOT) as the entity responsible for the reliable supply of electricity in its interconnected area of responsibility, establishing a fund under ERCOT's control to fund a net 5,000 MWe of "dispatchable" "peaking unit" generating capacity owned by "Independent Power Producers", establishing the payment structure to such "Independent Power Producers" to fund the 5,000 MWe of "dispatchable" "peaking unit" generating capacity, establishing the criteria of operation and performance of the "peaking unit" generating capacity under ERCOT's direct control, and establishing criteria for review of ERCOT's performance in its duty to assure reliability of electricity supply.