Texas Energy Efficiency Obligation

In 1999, the government of Texas introduced an energy efficiency obligation for residential and commercial electricity customers, except large industrial users connected to the transmission grid. (These customers do not pay for electric utility efficiency programs and therefore cannot participate in them.) Obligated parties include all electric transmission and distribution utilities (does not include electric cooperatives or municipally owned utilities). Obligated utilities must offset 30% of incremental load growth annually through end-use energy efficiency, subject to cost caps. If this goal is equivalent to at least 0.4% of a utility's summer weather-adjusted peak demand for the combined residential and commercial customers for the previous programme year, the utility shall acquire four-tenths of 1% of its summer weather-adjusted peak demand for the previous programme year. Eligible energy efficiency measures may include equipment, materials and practices (including behavioural or operational changes) implemented in a customer's site on the customer's side of the meter that result in a reduction at the customer level or on the utility's system in electric energy consumption, measured in kWh or peak demand. May include thermal energy storage and appliance removal. Each standard offer, market transformation, and self-delivered programme shall include use of an industry-accepted evaluation or measurement and verification protocol, such as the International Performance Measurement and Verification Protocol (IPMVP) or a protocol approved by the commission, to document and verify energy and peak demand savings. A utility shall not provide an energy efficiency service provider final compensation until the provider establishes that the work is complete and evaluation or measurement and verification in accordance with the protocol verifies that the savings will be achieved. The Commission also selects an EM&V contractor to verify uility efficiency programmes and programme portfolios.

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