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PUCT Staff Proposes Rule For REP Residential Demand Response

Dockets: 56966
Category: Uncategorized

Public Utilities Commission Staff issues a proposal for publication in – Project No. 56966 – Goal for Reducing Average Total Residential Load in the ERCOT Region – for consideration at the August 29,2024 Open Meeting. Commission Staff proposes new 16 Texas Administrative Code (TAC) §25.186 relating to Goal for Average Total Residential Load Reduction. The purpose of these proposed changes is to implement new Public Utility Regulatory Act §39.919 in accordance with Senate Bill 1699, Section 5 enacted by the 88th Legislature (Regular Session) that. Specifically, Commission Staff’s proposal will create an average total residential load reduction goal through the establishment of a demand response program that may be offered by retail electric providers to residential customers that utilize smart responsive appliances or devices to reduce electricity consumption during an ERCOT peak demand period. 

Commission Staff recommends the Commission approve this draft for publication in the Texas Register.

Excerpts from Staff Memo:
{***} The Public Utility Commission of Texas (commission) proposes new 16 Texas Administrative 2 Code (TAC) §25.186 relating to Goal for Average Total Residential Load Reduction. 3 4 This proposed rule will implement Public Utility Regulatory Act (PURA) §39.919 as enacted by 5 Senate Bill (SB) 1699, Section 5 during the Texas 88th Regular Legislative Session. The proposed 6 rule will create an average total residential load reduction goal through the establishment of a 7-demand response program that may be offered by retail electric providers to residential customers 8 that utilize smart responsive appliances or devices to reduce electricity consumption during an 9 ERCOT peak demand period. {***}

Public Comments – Interested persons may file comments electronically through the interchange on the commission’ s website. Comments must be filed by September 27,2024. Comments should be organized in a lo manner consistent with the organization of the proposed rule. The commission invites specific 11 comments regarding the costs associated with, and benefits that will be gained by, implementation of the proposed rule. The commission will consider the costs and benefits in deciding whether to modify the proposed rule on adoption. All comments should refer to Project Number 56966. {***}

As reported previously, the draft rule for publication would implement SB 1699.  SB 1699 requires that the program developed under the law’s mandate to reduce ERCOT residential load shall, “provide opportunities for demand response providers to contract with retail electric providers to provide demand response services.”

SB 1699 also requires that the residential load reduction program developed by the PUC shall allow a REP which offers a demand response program to obtain funding for such demand response program through a PUC-established energy efficiency funding program (e.g. such as the current TDU programs), provided that the REP’s offering shall meet customary evaluation, measurement and verification requirements.

The program developed by the PUC shall also, “facilitate [] 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”.

“The ratio of load reduced by all responsive device programs during an ERCOT peak period and the total amount of demand of all residential customers participating in the responsive device programs should meet or exceed the average total residential load reduction goal.” 

Proposal for Publication of New 25.186. Goal for Reducing Average Total Residential Load In ERCOT Region  (08/23/2024)
Project 56966  (08/19/2024)
Goal For Reducing Average Total Residential Load In The ERCOT Region.