S.B. No. 2994 amends Section 39.905 of the Utilities Code to enhance energy efficiency goals and programs in Texas. The bill mandates that electric utilities administer energy efficiency programs in a market-neutral manner, ensuring all customers have access to these alternatives. It establishes specific annual demand reduction targets for utilities based on their customer base size, with goals increasing by three percent each year starting in 2027. Additionally, the bill emphasizes low-income energy efficiency programs, requiring at least 15 percent of a utility's energy efficiency budget to be allocated to these initiatives. Utilities are granted exemptions from penalties for failing to meet goals due to uncontrollable factors, and the commission is tasked with overseeing program implementation and incentivizing utilities that exceed their targets.

The bill also introduces provisions for utilities in competitive areas, allowing them to claim energy savings from certain programs and requiring the commission to adopt rules for deemed savings. It modifies existing energy audit program provisions by removing limitations on the percentage of total program costs that audits can constitute, provided they do not make the utility's portfolio cost-ineffective. Furthermore, electric utilities must notify the commission every two years, and individuals contesting utility notices must show that requirements can be met through retail electric providers in designated "hard-to-reach areas." The Public Utility Commission of Texas is responsible for implementing these changes by March 1, 2024, with the bill taking effect immediately upon a two-thirds vote or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Utilities Code 39.905 (Utilities Code 39)