Electric utilities in Texas are being urged to invest more in energy efficiency programs that can benefit both consumers and the environment. Last year, the Public Utility Commission of Texas (PUCT) reviewed the plans presented by electric utilities responsible for meeting the state's energy efficiency goals. However, it was observed that these utilities tend to spend just enough to meet the minimum requirements and earn performance bonuses. The Sierra Club, an environmental organization, called for stronger investments in these programs to help stabilize the grid, reduce pollution, and create jobs.
Sierra Club intervened in mini-rate cases involving Oncor and American Electric Power (AEP) Texas, urging them to do more for residential consumers. Settlements were reached, leading to meetings with the utilities and their contractors in an effort to improve their energy efficiency programs. However, utilities are often hesitant to invest more in energy efficiency because it means earning less money for their investors. The PUCT, which must approve their plans, has not encouraged utilities to exceed the minimum requirements, despite acknowledging the benefits of energy efficiency and demand response in grid management.
Looking ahead, there is skepticism about whether utilities will significantly improve their energy efficiency programs. Last year, they opposed legislation that would have increased the state's energy efficiency goal. Although a modest bill was passed to encourage utilities to create new residential demand response programs, the PUCT has yet to establish the necessary rules for implementation. The Sierra Club hopes that their discussions with Oncor and AEP Texas may lead to additional changes.
The PUCT will hold a public meeting on February 28, during which the utilities will present their initial plans for the year. The Sierra Club has already filed comments highlighting the lack of action on demand response and energy efficiency. Cyrus Reed, the Conservation Director, will be present at the meeting and will provide an update afterward. The official plans from the utilities will be due on April 1.
According to the Sierra Club, there is a need for electric utilities in Texas to invest more in energy efficiency programs. These programs not only benefit consumers by reducing energy bills but also contribute to grid stability, pollution reduction, and job creation. It remains to be seen whether the utilities will make substantial improvements, but the Sierra Club is actively engaged in advocating for stronger investments and will continue to monitor the progress made by the utilities.
