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Texas REP Demand Response, ADER Bill Passes Separately
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The Texas House and Senate have passed SB 1699, relating to demand response and ADER, and sent the bill to the governor
Enrolled SB 1699 provides that a customer is entitled
• to participation in demand response programs
through retail electric providers that offer demand response
programs; and
• 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.
Enrolled SB 1699 further provides concerning REP demand response:
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
region;
(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
been achieved;
(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 if the program complies
with commission requirements related to the evaluation,
measurement, and verification of demand response programs adopted
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.
(d) A transmission and distribution utility required to
provide an energy efficiency incentive program under Section 39.905
may use up to 10 percent of the budgeted spending for demand
response programs on the programs described by Subsection (b)(9)
Concerning ADER, the bill provides:
Sec. 39.3515. AGGREGATE DISTRIBUTED ENERGY RESOURCES.
(a)
A person who aggregates distributed energy resources:
(1) is not required to register as a power generation
company to aggregate the resources;
(2) shall comply with rules, guidelines, and
registration requirements established by the commission and by
Chapter 17 and this chapter; and
(3) remains accountable for compliance with the
applicable statutes and rules by a subcontractor, an agent, or any
other entity compensated by the person for activities conducted on
the person's behalf.
(b) The commission may establish rules and registration
requirements for the aggregation of distributed energy resources
The bill provides that a retail
electric provider may not own or operate generation assets but may
aggregate distributed energy resources under Section 39.3515 (described above)
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May 30, 2023
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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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