Background

In 1999, the Texas Legislature passed, and Governor George W. Bush signed, Senate Bill 7 (SB7), which restructures the state's electric utility industry. The bill also requires each investor-owned electric utility to reduce Texas customers' energy consumption by a minimum of 10% of the utility's annual growth in demand in Texas by January, 2004. Utilities must achieve this goal through standard offer programs or limited target market programs that will result in reduced energy consumption.

In March of 2000, the Public Utilities Commission of Texas (PUCT) passed Substantive Rule §251.181, which implements the energy efficiency goal of SB7. Interested parties, the state's investor-owned utilities, and PUCT staff then developed energy efficiency program templates that will be adopted and offered throughout Texas by the utilities. These programs will vary from one utility service territory to another, but can include:

• Commercial and Industrial Standard Offer
• Residential and Small Commercial Standard Offer
• Energy Star® Homes Market Transformation
• Residential Energy Star® Windows Market Transformation
• Load Management Standard Offer
• Hard to Reach Customer Standard Offer
• Air-Conditioner Distributor Market Transformation
• Air-Conditioner Installation Information and Training Market Transformation