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Bill

SB 2994

Relating to energy efficiency goals and programs, public information regarding energy efficiency programs, and the participation of loads in certain energy markets.

89th Legislature (2025) Introduced by César Blanco and 1 co-sponsor

Texas bill establishes energy efficiency goals, mandates public program disclosure, and permits flexible electrical loads to participate in energy markets for demand management and cost reduction.

Reported favorably w/o amendment(s)
#energy--conservation(i0317) #publicutilitycommission(v0023) #utilities--electric(i0831)
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Bill Summary · SB 2994

Legislative bill overview

SB 2994 establishes new energy efficiency goals and programs in Texas while requiring public disclosure of energy efficiency program information and allowing flexible loads (like water heaters or EV chargers) to participate in energy markets. The bill aims to modernize Texas's energy efficiency framework and create market opportunities for demand-side resources.

Why is this important

Texas faces growing electricity demand from population growth and industrial expansion, making energy efficiency critical to grid reliability and affordability. By enabling loads to participate in energy markets, the bill creates financial incentives for consumers and businesses to manage consumption strategically, potentially reducing peak demand costs and improving grid stability during stressed periods.

Potential points of contention

  • Cost allocation: Requirements for energy efficiency programs typically increase utility costs, raising questions about whether expenses are fairly distributed across customer classes or disproportionately burden low-income households
  • Market participation safeguards: Allowing loads in energy markets creates concerns about consumer protection, data privacy, and whether participation agreements adequately protect residential customers from unexpected billing or service disruptions
  • Implementation burden: Utilities must establish new public reporting systems and program infrastructure, with unclear funding mechanisms and potential compliance cost pass-through to ratepayers

Compiled from official sources — confirm details with the bill’s official record.

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