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Regulatory Affairs Provisions in Senate Bill 7, enacted in the 1999 Texas legislature, mandated that at least 10% of an investor owned utility's (IOU) annual growth in electricity demand be met through energy efficiency programs each year. Due to the success of the programs, goals for energy efficiency were increased through House Bill 3693 during the 2007 legislative session. Currently, the IOUs are required to meet 20% of their growth in demand through energy efficiency programs. The Public Utility Commission of Texas (PUCT) Substantive Rule 25.181 (Energy Efficiency Rule) establishes procedures for meeting this legislative mandate. On July 30, 2010 the PUCT approved changes to this rule, increasing the energy efficiency goal to 30% of demand growth by the end of 2013. Effective December 1, 2010, the latest Energy Efficiency Rule mandates that IOUs meet the following demand reduction goals by the end of the specified year:
Utilities are required to administer incentive programs to meet the mandated energy efficiency goals. Programs are implemented through retail electric providers and energy efficiency service providers (EESPs) and are designed to reduce system peak demand, energy consumption, or energy costs. Utilities must achieve their energy efficiency goals through either standard offer programs (SOPs) or market transformation programs (MTPs). Programs are made available to all customers, in all customer classes. This gives each customer a choice of a variety of energy efficiency alternatives. Energy Efficiency Rules (Part 1) |
