Texas Senate Passes Amended PUC Sunset Bill; Amendment On REP Market Share Cap Not Offered
Passed Bill Includes REP Demand Response Program Provisions; ADER
May 24, 2023 Email This Story Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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The Texas Senate today passed HB 1500, the PUC sunset bill, with various amendments addressing a range of electricity policy issues
The Senate version differs from the House-passed version, and for final passage the House will need to either accept the Senate version, or the bill will need to go through the conference process
Most notable is that, in finale passage in the Senate, an amendment to HB 1500 to impose a 20% market share cap on retail electric providers (which, as previously reported, was contained in an earlier, separate bill this session before being struck) was ultimately not offered and not included in the bill
The Senate-passed version of HB 1500 does include a reporting requirement related to REP market share (again, language that was in earlier bills this session)
HB 1500 provides as follows:
Sec. 39.168. RETAIL SALES REPORT.
(a) Each retail electric
provider that offers electricity for sale shall report to the
(1) its annual retail sales in this state;
(2) the annual retail sales of its affiliates by
number of customers, kilowatts per hour sold, and revenue from
kilowatts per hour sold by customer class; and
(3) any other information the commission requires
relating to affiliations between retail electric providers.
(b) The commission by rule shall prescribe the nature and
detail of the reporting requirements. The commission may accept
information reported under other law to satisfy the requirements of
this section. Information reported under this section is
confidential and not subject to disclosure if the information is
competitively sensitive information. The commission shall
administer the reporting requirements in a manner that ensures the
confidentiality of competitively sensitive information.
HB 1500 as passed by the Senate was also amended to include various PCM guardrails, including the $1 billion cap using the language adopted by the House under SB7
HB 1500 as passed by the Senate also includes language from SB114 concerning retail electric provider demand response programs
The SB114 language incorporated into HB 1500 states as follows:
A customer is entitled ...
• to participation in demand response programs
through retail electric providers that offer demand response
• to receive notice from the retail electric
provider that serves the customer when the independent organization
certified under Section 39.151 for the ERCOT power region issues an
emergency energy alert.
Furthermore, the SB114 language incorporated into HB 1500 states as follows:
Sec. 39.919. AVERAGE TOTAL RESIDENTIAL LOAD REDUCTION
GOALS. (a) The commission by rule shall establish goals in the
ERCOT power region to reduce the average total residential load.
(b) The rules adopted under Subsection (a) must provide for
the adoption of a program that:
(1) provides demand response participation to
residential customers where reasonably available;
(2) promotes the use of smart metering technology;
(3) is capable of responding to an emergency energy
alert about low operating reserves issued by the independent
organization certified under Section 39.151 for the ERCOT power
(4) provides opportunities for demand response
providers to contract with retail electric providers to provide
demand response services;
(5) ensures the program does not impact the critical
needs of vulnerable populations;
(6) facilitates the widespread deployment of smart
responsive appliances and devices in a manner that enables the
customer's appliance or device to be enrolled as part of a demand
response product or plan offered by a retail electric provider;
(7) establishes the method by which the components of
the ratio described by Subsection (c) are calculated for purposes
of determining whether the goals described by Subsection (a) have
(8) provides for achievement of demand reductions
within both summer and winter seasons; and
(9) allows a retail electric provider that offers a
demand response program under this section to obtain funding for
the demand response program through an energy efficiency incentive
program established under Section 39.905.
(c) The goals described by Subsection (a) must be calculated
as a ratio by dividing the amount of load reduced at peak demand by
the total amount of demand, at the same time, of all residential
customers who have responsive appliances or devices at their
premises that reduce the electric consumption of the customers.
HB 1500 as passed by the Senate also includes language from SB1212 concerning aggregated distributed energy resources as well as provisions concerning the sale of energy from DERs to REPs if such energy is not sold at wholesale
Among other things, the language provides:
Sec. 39.9166. DISTRIBUTED ENERGY RESOURCES.
customer who purchases or leases a distributed energy resource or
enters into a power purchase agreement for a distributed energy
resource in the ERCOT power region is entitled to the information
and disclosures required under Chapter 115, Business & Commerce
Code, and is entitled to protection from fraudulent, unfair,
misleading, or deceptive practices.
(b) An owner or operator of a distributed energy resource
may provide energy or ancillary services in the wholesale market in
the ERCOT power region.
(c) A person who owns or operates a distributed energy
resource in an area in which customer choice has been introduced and
is part of an aggregated distributed energy resource, or has not
individually registered with the commission as its own power
generation company, must sell the surplus electricity that is
produced by the distributed energy resource and not consumed by the
owner's premise to the retail electric provider that serves the
premise's load at a value agreed to between the distributed energy
resource owner and the retail electric provider that serves the
premise's load. The value may be an agreed value based on the
clearing price of energy or ancillary service at the time of day
that the electricity is made available to the grid.
(d) A person who operates an aggregated distributed energy
resource in an area in which customer choice has been introduced is
subject to customer protection rules established by the commission
under Chapter 17 and this chapter.
(e) The independent organization certified under Section
39.151 for the ERCOT power region shall adopt procedures to ensure
that the amount of electricity purchased from a distributed energy
resource owner under this section is accounted for when settling
the total load served by the retail electric provider that serves
that premise owner's load.
(f) A distributed energy resource owner that requests net
metering services for purposes of this section must have metering
devices capable of providing measurements consistent with the
independent organization's settlement requirements.
(g) A transmission and distribution utility may provide to
customers educational information regarding the technical
requirements for the interconnection of distributed energy
resources to the distribution system. The provision of information
under this subsection is not considered a competitive energy
(h) This section does not apply to a purchase or agreement
entered into under Section 39.914 or 39.916.
HB 1500 as passed by the Senate would also end the mandatory RPS for REPs in Texas, adopting language from SB 2014. A tracking system would remain in place for voluntary REC tracking
HB 1500 as passed by the Senate also includes language from SB1075 further confirming, and expanding the use cases for, the use of mobile generation by TDUs and TDU affiliates