Senate Bill No. 2994 aims to enhance energy efficiency in Texas by amending Section 39.905 of the Utilities Code. The bill mandates that electric utilities administer energy efficiency programs in a market-neutral manner, ensuring all customers have access to options that reduce energy consumption and costs. It sets specific annual demand reduction targets for utilities based on their customer base size, with incremental increases starting in 2027. Additionally, the bill requires utilities to provide incentives for energy efficiency through market-based programs and outlines the commission's oversight role.

The legislation places a strong emphasis on low-income energy efficiency programs, mandating that at least 15% of each utility's energy efficiency budget be allocated to these initiatives, with the possibility of higher funding at the commission's discretion. It removes the previous requirement for annual expenditures on targeted low-income programs to be at least 10% of the utility's budget and states that these programs do not need to meet minimum cost-effectiveness standards, although the commission will evaluate them for potential improvements. The bill also provides conditions under which utilities may be exempt from penalties for not meeting energy efficiency goals due to uncontrollable factors and allows for direct rebate or incentive funds to customers in hard-to-reach areas. The Public Utility Commission of Texas is tasked with implementing these changes by March 1, 2027.

Statutes affected:
Introduced: Utilities Code 39.905 (Utilities Code 39)
Senate Committee Report: Utilities Code 39.905 (Utilities Code 39)
Engrossed: Utilities Code 39.905 (Utilities Code 39)