Bill Text: TX HB3071 | 2023-2024 | 88th Legislature | Introduced

Bill Title: Relating to the development of electricity demand response programs.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-14 - Referred to State Affairs [HB3071 Detail]

Download: Texas-2023-HB3071-Introduced.html
  88R14061 DIO-F
  By: Thierry H.B. No. 3071
  relating to the development of electricity demand response
         SECTION 1.  Section 39.101(b), Utilities Code, is amended to
  read as follows:
         (b)  A customer is entitled:
               (1)  to be informed about rights and opportunities in
  the transition to a competitive electric industry;
               (2)  to choose the customer's retail electric provider
  consistent with this chapter, to have that choice honored, and to
  assume that the customer's chosen provider will not be changed
  without the customer's informed consent;
               (3)  to have access to providers of energy efficiency
  services, to on-site distributed generation, [and] to providers of
  energy generated by renewable energy resources, and to
  participation in demand response programs through demand response
               (4)  to be served by a provider of last resort that
  offers a commission-approved standard service package;
               (5)  to receive sufficient information to make an
  informed choice of service provider;
               (6)  to be protected from unfair, misleading, or
  deceptive practices, including protection from being billed for
  services that were not authorized or provided; and
               (7)  to have an impartial and prompt resolution of
  disputes with its chosen retail electric provider and transmission
  and distribution utility.
         SECTION 2.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Section 39.9056 to read as follows:
         Sec. 39.9056.  DEMAND RESPONSE IN ERCOT POWER REGION. (a)
  The legislature finds that electricity markets function most
  efficiently when supply side and demand side resources both
  contribute to the adequacy of the electric system. The legislature
  also finds that the ERCOT power region has not yet achieved its
  potential for demand response, and, therefore, it is the policy of
  this state to promote the development of demand response to its
  maximum potential and to eliminate unnecessary barriers to demand
  response participation.
         (b)  In this section:
               (1)  "Demand response" means changes in electric usage
  by customers from their normal consumption patterns in response to:
                     (A)  changes in the price of electricity use over
  time; or
                     (B)  incentive payments designed to induce lower
  electricity use at times of high wholesale market prices or when
  system reliability is jeopardized. 
               (2)  "Demand response provider" means a competitive
  energy services provider that aggregates customer load reduction
  capabilities, including reliability demand response capability,
  and offers those capabilities into an electricity market or
               (3)  "Reliability demand response" means demand
  response to be dispatched by an independent system operator or a
  distribution utility in response to an electric grid reliability
         (c)  The commission by rule shall:
               (1)  require the independent organization certified
  under Section 39.151 for the ERCOT power region to provide the
  commission not less frequently than December 1 of each odd-numbered
  year with an analysis of the potential demand response opportunity
  and penetration in the ERCOT power region;
               (2)  promote development of demand response
  participation by customers in all customer classes;
               (3)  remove barriers to demand response participation
  for demand response providers and for customers in all customer
               (4)  ensure that customers in all customer classes have
  the option to contract for participation in demand response either
  directly with one or more demand response providers, including
  retail electric providers, with scheduling entities qualified by
  the independent system operator, or with a combination of entities
  consisting of the independent system operator and one or more
  demand response providers;
               (5)  establish and encourage markets, products,
  programs, or services for reliability demand response and other
  forms of demand response in wholesale and retail markets; and
               (6)  provide opportunities for demand response
  providers and customers to participate in wholesale energy markets
  and ancillary services markets on a comparable basis with other
  resources, while accommodating differences in operational
  capabilities of various customer loads among customer classes,
  including but not limited to differences related to availability,
  dispatch notification timelines, curtailment response times, ramp
  rates, curtailment duration, and times required to return to
  service following an outage.
         SECTION 3.  The Public Utility Commission of Texas shall
  adopt rules as necessary to implement Section 39.9056, Utilities
  Code, as added by this Act, not later than May 1, 2024.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2023.