| 1 | 1 | | 89R8943 ANG-D |
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| 2 | 2 | | By: Zaffirini S.B. No. 2074 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to a study of the four coincident peak program by the |
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| 10 | 10 | | Public Utility Commission of Texas and the independent organization |
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| 11 | 11 | | certified to manage the ERCOT power region. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. DEFINITIONS. In this Act: |
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| 14 | 14 | | (1) "Commission" means the Public Utility Commission |
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| 15 | 15 | | of Texas. |
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| 16 | 16 | | (2) "Independent organization" means the independent |
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| 17 | 17 | | organization certified under Section 39.151, Utilities Code, for |
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| 18 | 18 | | the ERCOT power region. |
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| 19 | 19 | | (3) "Program" means the four coincident peak program |
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| 20 | 20 | | used by the independent organization to calculate and assign demand |
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| 21 | 21 | | charges. |
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| 22 | 22 | | SECTION 2. STUDY. (a) The commission, in coordination with |
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| 23 | 23 | | the independent organization, shall conduct a study of the program. |
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| 24 | 24 | | The study must include: |
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| 25 | 25 | | (1) a review of the program's rate design, with an |
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| 26 | 26 | | analysis of: |
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| 27 | 27 | | (A) using regional data, the historic and current |
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| 28 | 28 | | total amount of cost shifting that occurs due to coincident peak |
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| 29 | 29 | | avoidance by retail electric customers who are subject to the |
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| 30 | 30 | | program; |
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| 31 | 31 | | (B) potential solutions to prevent the avoidance |
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| 32 | 32 | | of charges under the program by retail electric customers; and |
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| 33 | 33 | | (C) the effects of the program on peak demand; |
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| 34 | 34 | | (2) consideration of large loads with backup |
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| 35 | 35 | | generation on the customer's side of the meter; and |
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| 36 | 36 | | (3) a comparative analysis of other potential methods |
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| 37 | 37 | | for calculating and assigning demand charges, including methods |
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| 38 | 38 | | based on more frequent coincident peaks or longer coincident peak |
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| 39 | 39 | | periods, including a comparison of the reliability and market |
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| 40 | 40 | | impact of the program methodology versus other methods. |
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| 41 | 41 | | (b) The commission shall establish the scope of the data, |
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| 42 | 42 | | timeframes, and comparative methods involved in the study. |
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| 43 | 43 | | SECTION 3. REPORT. The commission shall prepare a report |
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| 44 | 44 | | with the conclusions of the study and submit the report to the |
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| 45 | 45 | | legislature not later than December 1, 2026. |
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| 46 | 46 | | SECTION 4. EXPIRATION. This Act expires January 1, 2027. |
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| 47 | 47 | | SECTION 5. EFFECTIVE DATE. This Act takes effect September |
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| 48 | 48 | | 1, 2025. |
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