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Bill

SB 1916

Relating to the use of a load management program to meet an electric utility's energy efficiency goal.

89th Legislature (2025) Introduced by Sarah Eckhardt and 1 co-sponsor

Texas bill allows utilities to use load management programs as alternative method for meeting state energy efficiency requirements instead of traditional efficiency improvements.

Referred to Business & Commerce
#utilities--electric(i0831)
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Bill Summary · SB 1916

Legislative bill overview

SB 1916 allows Texas electric utilities to use load management programs as a method to meet their mandatory energy efficiency goals. Load management programs reduce electricity consumption during peak demand periods through incentives or automated controls rather than traditional energy efficiency improvements. This expands the compliance options utilities have when meeting state-mandated energy reduction targets.

Why is this important

Energy efficiency goals drive utilities to reduce overall electricity consumption, which affects infrastructure investment needs, customer bills, and grid reliability. This bill changes how utilities can demonstrate compliance—shifting focus from permanent efficiency upgrades (like better insulation) to temporary demand reduction. The approach could lower compliance costs for utilities but may produce different long-term benefits than traditional efficiency investments.

Potential points of contention

  • Permanence vs. temporary savings: Load management reduces consumption only when activated; it doesn't permanently improve building efficiency like weatherization does, raising questions about whether it should count equally toward efficiency goals
  • Consumer burden: Load management may shift peak loads to inconvenient times for customers (higher rates during peak, controlled thermostat adjustments, or voluntary participation incentives that affect bills)
  • Grid stability trade-offs: While reducing peak demand helps reliability short-term, it doesn't address aging infrastructure or long-term capacity needs that permanent efficiency improvements would help solve

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

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