Bill Text: TX SB1050 | 2023-2024 | 88th Legislature | Engrossed
Bill Title: Relating to the authority of a natural gas local distribution company to offer energy conservation programs.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed) 2023-04-28 - Referred to Energy Resources [SB1050 Detail]
Download: Texas-2023-SB1050-Engrossed.html
| By: Hughes | S.B. No. 1050 | |
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| relating to the authority of a natural gas local distribution | ||
| company to offer energy conservation programs. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 104, Utilities Code, is amended by | ||
| adding Subchapter J to read as follows: | ||
| SUBCHAPTER J. NATURAL GAS ENERGY CONSERVATION PROGRAMS | ||
| Sec. 104.401. DEFINITIONS. In this subchapter: | ||
| (1) "Energy conservation program" means a program that | ||
| promotes energy conservation or energy efficiency. | ||
| (2) "Local distribution company" means a gas utility | ||
| that operates a retail gas distribution system. | ||
| Sec. 104.402. ENERGY CONSERVATION PROGRAM AUTHORITY. (a) | ||
| A local distribution company may offer to customers and prospective | ||
| customers and provide to customers an energy conservation program | ||
| in the manner provided by this subchapter. | ||
| (b) The railroad commission has exclusive original | ||
| jurisdiction over energy conservation programs implemented by | ||
| local distribution companies. | ||
| (c) A political subdivision served by a local distribution | ||
| company that implements an energy conservation program approved by | ||
| the railroad commission under this subchapter may not limit, | ||
| restrict, or otherwise prevent an eligible customer from | ||
| participating in the energy conservation program based on the type | ||
| or source of energy delivered to the customer. | ||
| Sec. 104.403. ENERGY CONSERVATION PROGRAM COST RECOVERY. | ||
| (a) A local distribution company may recover costs prudently | ||
| incurred to implement one or more energy conservation programs, | ||
| including costs incurred to design, market, implement, administer, | ||
| and deliver an energy conservation program and an amount equal to | ||
| the reduction in the local distribution company's marginal revenues | ||
| due to the lower sales or demand resulting from the energy | ||
| conservation program, if: | ||
| (1) the company applies to the railroad commission at | ||
| least once every three years under this subchapter for review and | ||
| approval of the company's energy conservation programs; and | ||
| (2) the railroad commission approves cost recovery for | ||
| the company's energy conservation programs. | ||
| (b) The railroad commission by rule shall require a local | ||
| distribution company that implements an energy conservation | ||
| program under this subchapter to submit to the railroad commission | ||
| an annual report on: | ||
| (1) the performance of the company's energy | ||
| conservation programs for the preceding year; and | ||
| (2) the company's planned energy conservation programs | ||
| for the upcoming year. | ||
| (c) An application submitted under Subsection (a) must | ||
| include: | ||
| (1) a summary of and objectives for the local | ||
| distribution company's energy conservation programs; | ||
| (2) a description of each program; | ||
| (3) a proposed budget for each program; | ||
| (4) the projected consumption reduction or cost | ||
| savings for each program; and | ||
| (5) any public input compiled by the local | ||
| distribution company on the proposed programs as required by the | ||
| railroad commission. | ||
| (d) The railroad commission by rule may: | ||
| (1) determine a cost recovery mechanism for timely | ||
| recovery of costs described by Subsection (a); and | ||
| (2) ensure that costs described by Subsection (a) are | ||
| allocated to the customer classes eligible for participation in the | ||
| energy conservation program. | ||
| (e) Energy conservation programs proposed under this | ||
| section may be combined in a portfolio to provide incentives and | ||
| services to encourage energy conservation. The portfolio: | ||
| (1) must be designed to overcome barriers to the | ||
| adoption of energy-efficient equipment, technologies, and | ||
| processes and be designed to change customer behavior as necessary; | ||
| and | ||
| (2) may include measures such as: | ||
| (A) direct financial incentives; | ||
| (B) technical assistance and information, | ||
| including building energy performance analyses performed by the | ||
| local distribution company or a third party approved by the | ||
| company; | ||
| (C) discounts or rebates for products; and | ||
| (D) weatherization for low-income customers. | ||
| (f) A proceeding filed under this section is not a | ||
| ratemaking proceeding for the purposes of Section 103.022. | ||
| (g) A local distribution company implementing an energy | ||
| conservation program under this subchapter shall reimburse the | ||
| railroad commission for the utility's proportionate share of the | ||
| railroad commission's costs related to administration of reviewing | ||
| and approving or denying cost recovery applications under this | ||
| subchapter. | ||
| SECTION 2. 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. | ||
