Energy-Efficiency Funds and Demand Response Programs, Texas

Updated June 2007

What public-purpose-funded energy efficiency programs are available in my state?

The Public Utilities Commission of Texas (PUCT) oversees a set of statewide standard offer and market transformation programs that are available to customers in each of the investor-owned utilities' service territories. The programs are funded through a systems benefits charge (SBC) of approximately $80 million/year on transmission and distribution services.

The Commercial and Industrial Standard Offer Program provides incentives to implement energy efficiency measures in retrofits or renovations. Incentives are paid for both energy and summer peak demand savings and are based on either deemed savings values or measurement and verification. Though incentive levels and eligibility requirements vary across the utilities in Texas, the basic program requirement is that customers have peak demands of at least 100 kW. Service providers can include local contractors, energy service companies (ESCOs), and even the site itself. Conservation measures are not prescribed, but together must provide at least 10 or 20 kW (depending on the utility) of summer peak demand savings per project. Incentive payments range from $150 to $200/kW (at peak) and $0.05 to $0.07/kWh (of 1st year savings).

To access utility-by-utility information on specific offerings, visit the Texas Energy Efficiency web site.

What utility energy efficiency programs are available to me?

Please see the section above for information regarding standard offer programs offered by Texas utilities.

CenterPoint Energy's Commercial and Industrial Retro-Commissioning Program is geared towards identifying low-cost peak demand savings. CenterPoint provides a qualified commissioning agent to commission your facility in exchange for a commitment by the facility to invest at least $10,000 in recommended measures.

Austin Energy offers a Commercial Rebate Program, which covers air conditioning, lighting, roofs, chillers, energy recovery ventilators, motors, variable speed drives, windows, and custom measures. A separate program offers free (installation included) Energy Miser vending machine controllers.

What load management/demand response options are available to me?

Federal customers can receive payments for providing load curtailments through several programs offered by the Electric Reliability Council of Texas (ERCOT).

Balancing Up Loads (BULs): Customer load curtailment offers can be bid into the Balancing Energy Market. If the bid is selected and the load reduction is provided, compensation is made both in terms of an energy payment based on the prevailing market clearing price for energy (MCPE), and a capacity payment based on the market clearing price for capacity in the Non-Spinning Reserves Market.
Load Acting as a Resource (LaaR): Customer load curtailment offers can be bid into a number of different ancillary services markets. Participation requirements and compensation depend upon the particular market, although all programs require that customers have real-time telemetry installed. For the Responsive Reserve and Non-Spinning Reserve markets, capacity payments are made regardless of whether the customer is called upon to curtail.
Voluntary Load Reduction: Customers receive payment for curtailing load at their discretion, in response to the actual or projected hourly MCPE.
Emergency Interruptible Load Service (EILS): As with the BULs and LaaR programs, customers bid to provide load reductions. However, this program is aimed solely at alleviating emergency (as opposed to high price) conditions on the ERCOT grid.

For all programs, the customer participates through their Retail Electricity Provider (REP), and transactions with ERCOT are conducted by the qualified scheduling entity (QSE) for the customer's REP. The specific terms for customer participation, including compensation, are based on the contractual arrangement between the customer and their REP.

Austin Energy offers the Load Cooperative Program wherein customers receive incentives (payable June through September) for committed load reductions. Payments total $5/kW (paid monthly at $1.25/kW per month) for all committed load, along with a payment of 15 cents/kWh for energy reduced during any actual load curtailment.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following program may of interest to federal customers:

Austin Energy's Solar Rebate Program offers a $4.50 per watt rebate (up to $100,000 or 80% of system cost, whichever is less) for photovoltaic installations by program-approved installers.

Are there energy efficiency programs sponsored by state government?

For information on state-sponsored energy efficiency programs, contact the State Energy Conservation Office at the Texas Comptroller of Public Accounts.

What additional opportunities are available to me?

Federal customers also have opportunities to pursue energy efficiency projects with utilities (e.g., CenterPoint Energy, Central Power & Light, El Paso Electric, Entergy, Houston Lighting & Power (Reliant), Southwestern Public Service Compnay, and TXU) that have area-wide contracts with GSA and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.