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