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  89R8943 ANG-D     By: Zaffirini S.B. No. 2074       A BILL TO BE ENTITLED   AN ACT   relating to a study of the four coincident peak program by the   Public Utility Commission of Texas and the independent organization   certified to manage the ERCOT power region.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  DEFINITIONS. In this Act:                (1)  "Commission" means the Public Utility Commission   of Texas.                (2)  "Independent organization" means the independent   organization certified under Section 39.151, Utilities Code, for   the ERCOT power region.                (3)  "Program" means the four coincident peak program   used by the independent organization to calculate and assign demand   charges.          SECTION 2.  STUDY. (a)  The commission, in coordination with   the independent organization, shall conduct a study of the program.     The study must include:                (1)  a review of the program's rate design, with an   analysis of:                      (A)  using regional data, the historic and current   total amount of cost shifting that occurs due to coincident peak   avoidance by retail electric customers who are subject to the   program;                      (B)  potential solutions to prevent the avoidance   of charges under the program by retail electric customers; and                      (C)  the effects of the program on peak demand;                (2)  consideration of large loads with backup   generation on the customer's side of the meter; and                (3)  a comparative analysis of other potential methods   for calculating and assigning demand charges, including methods   based on more frequent coincident peaks or longer coincident peak   periods, including a comparison of the reliability and market   impact of the program methodology versus other methods.          (b)  The commission shall establish the scope of the data,   timeframes, and comparative methods involved in the study.          SECTION 3.  REPORT. The commission shall prepare a report   with the conclusions of the study and submit the report to the   legislature not later than December 1, 2026.          SECTION 4.  EXPIRATION. This Act expires January 1, 2027.          SECTION 5.  EFFECTIVE DATE. This Act takes effect September   1, 2025.