S.B. No. 2074 mandates a study by the Public Utility Commission of Texas, in collaboration with the independent organization managing the ERCOT power region, to evaluate the four coincident peak program. The study will focus on several key areas, including an analysis of the program's rate design, the historical and current cost shifting due to coincident peak avoidance by retail electric customers, and potential solutions to mitigate this avoidance. Additionally, it will consider the impact of large loads with backup generation and compare the current methodology with alternative methods for calculating demand charges.

The commission is required to define the scope of data, timeframes, and comparative methods for the study, and it must prepare a report detailing the findings by December 1, 2026. The bill also establishes an expiration date of January 1, 2027, and will take effect on September 1, 2025.