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ERCOT - Delivery of Energy Efficiency Programs in Texas
By Cindy Wishert, Market Manager - ERCOT, GDF SUEZ Energy Resources NA
Provisions of Senate Bill 7, which was
enacted in 1999 by the Texas Legislature and amended through the
years, mandate that at least 20 percent of the peak load growth
in ERCOT be met through energy efficiency measures for the year
2009. Beyond 2009, it requires that a utility’s goal for demand
reduction (in MWs) for any year shall not be less than the
previous year.
To achieve these goals, utilities
administer energy savings incentive programs, which are
implemented through retail electric providers and energy
efficiency service providers (EESPs). Utilities must achieve
their energy efficiency goals through either standard offer
programs (SOPs) or limited, targeted market transformation
programs (MTPs).
What are these programs and who can
participate?
Energy efficiency programs
are technology-centric promotion programs that reduce peak
demand, energy consumption or energy costs and are available to
all customer classes. Some large industrial customers may be
exempt from paying the charge, provided they can document
measures they have implemented. Some Local Distribution
Companies offer programs for industrial customers. Customers
select the energy efficiency service provider, decide what
equipment to install and choose what work the contractor will
do. All programs are designed to reduce system peak demand,
energy consumption or energy costs.
Standard
offer programs are funded on an annual basis and are
targeted at key segments to reduce demand and energy
consumption. Savings from these programs are verified by either
a measurement and verification process or a deemed savings
calculation that is determined by the energy efficiency provider
and approved by the utility sponsoring the program.
Market transformation programs are strategic
efforts to promote energy-efficient technologies that might
otherwise face market barriers. These programs are designed to
produce savings beyond what would be achieved from existing
building codes and equipment efficiency standards. Projects may
run over a one-year period and must also produce a peak demand
reduction and verifiable savings.
Cost for these programs
is recouped through the Energy Efficiency Cost Recovery Factor
(EECRF) as part of the Transportation and Distribution Service
Provider charges. In order for a utility company to recoup this
cost, it must submit an annual report on energy efficiency
results to the Public Utility Commission of Texas with
projections for saving for two years and a historical five-year
look.
Below are a few of
the utility programs offered in Texas by ERCOT service
territory. These programs may change from year to year to target
specific customer classes. Customers must apply in order to
participate in them, and funds are limited. For specific
information on these programs, contact your Local Distribution
Company.
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