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In Final Rule, Texas PUC Drops Late-Added Month-Based Time Limit On Enrollment Lengths For Retail Providers' Responsive Device Programs
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In adopting a final rule concerning the offering of, and funding for, responsive device programs administered by retail electric providers, the Texas PUC removed a proposed time limit on the length of an enrollment into a REP's responsive device program, which, under certain circumstances, would have been independent of the specific program's term or the customer's supply term with the REP
As first reported by ECM, PUC Staff, for the first time in a draft proposal for adoption, proposed time limits for the length of any enrollment onto a REP's responsive device program
Specifically, Staff had proposed an expiration date for service under any responsive device program enrollment as follows:
• If the responsive device program is bundled with a retail electric contract, the responsive device program enrollment was proposed by Staff to expire with the term of the retail contract
• If the responsive device program is offered on a stand-alone basis separate from the supply contract, then the responsive device program enrollment was proposed by Staff to expire on the earlier of: (1) 12 months from the date of enrollment, or (2) the cessation of electric supply service from the REP to the customer
While the final rule adopted by the PUC today will impose some limits on the length of responsive device program enrollments, the PUC rejected a 12-month limitation on enrollments as proposed by Staff under the certain conditions described above. Instead, the PUC will link any applicable expiration to the customer's electric supply service with the REP, or, if the program is unbundled, either a term set forth in the responsive device program itself, or the date that the REP ceases serving the customer for retail electric supply.
Specifically, under the final rule, a customer's enrollment in a REP's responsive device program shall expire at the time described below:
(i) if participation in the responsive device program is offered or included as part of a product or plan for retail electric service, the responsive device program enrollment expiration shall occur coincident with the expiration of the term of the retail electric service contract; or
(ii) if the responsive device program is offered as a separate product or plan, or as an additional service, the responsive device program enrollment expiration shall occur on a date consistent with the REP's disclosures to the customer regarding the term of the responsive device program, but, regardless of the foregoing, the responsive device program enrollment expiration shall occur when the REP that enrolled the customer is no longer the REP of record for that customer.
The only other change that the PUC made in the final order, versus a draft proposal for adoption, was striking language in the rule that would have allowed the PUC to modify, outside of a rulemaking process, the numeric goal for an average total residential load reduction in the ERCOT market. Commissioner Courtney Hjaltman said that statute requires the goal to be set by rule, and not a separate non-rulemaking process established by any adopted rule
More details concerning the goal and responsive device programs that may be offered by REPs can be seen in our prior story discussing the proposal for adoption. Aside from the two changes described above, the proposal for adoption was approved without modification
In brief, the new rule authorizes REPs to offer responsive device programs defined by the rule, and authorizes REPs to secure funding, from the ratepayer-funded TDU energy efficiency programs, to develop and offer a responsive device program that provides an incentive to residential customers for load reductions
The final rule does not compel REPs to offer a responsive device program or to offer demand response to residential customers
The rule does state that a responsive device program must allow demand response participation by residential customers, "where reasonably available," including during the summer and winter seasons
The rule defines a responsive device program as a program that offers an incentive to residential customers with "smart responsive appliances or devices" to reduce load. A REP's responsive device program must be capable of responding to an ERCOT emergency energy alert
The adopted rule narrowly prohibits a residential customer who is participating in an ERCOT/TDU emergency or similar program, which provides that the customer must be capable of responding pursuant to the applicable ERCOT/TDU program, from participating in a responsive device program. Otherwise, the rule itself does not prohibit customers from participating in multiple demand response programs
A TDU may use 10% of its demand response budget, which is part of its overall energy efficiency budget, for funding of the REP responsive device programs -- not 10% of the TDU's total energy efficiency budget
The adopted rule sets the average total residential load reduction goal at 0.25 (i.e., a 20 percent [sic] reduction in load by participating residential customers)
The goal is calculated as a ratio by dividing the load reduced by all responsive device programs during an ERCOT peak demand period by the total amount of demand of all residential customers participating in a responsive device program during that ERCOT peak demand period
Project 56966
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December 12, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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