84R8424 GRM-F
	By: Watson	S.B. No. 1284

	A BILL TO BE ENTITLED
	AN ACT
	relating to the development of electricity demand response
	programs.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	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 through demand response
	providers;
	(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 39.9053 to read as follows:
	Sec. 39.9053.  DEMAND RESPONSE IN ERCOT. (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 ERCOT 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 in
	ERCOT.
	(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 the
	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
	program.
	(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
	issue.
	(c)  The commission by rule shall:
	(1)  require the independent organization certified
	under Section 39.151 for the ERCOT 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 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
	classes;
	(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 39.9053, Utilities
	Code, as added by this Act, not later than May 1, 2016.
	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, 2015.