By: Watson	S.B. No. 1280
	(In the Senate - Filed March 6, 2013; March 13, 2013, read
	first time and referred to Committee on Business and Commerce;
	April 11, 2013, reported adversely, with favorable Committee
	Substitute by the following vote:  Yeas 7, Nays 2; April 11, 2013,
	sent to printer.)
	COMMITTEE SUBSTITUTE FOR S.B. No. 1280	By:  Watson

	A BILL TO BE ENTITLED
	AN ACT
	relating to attaining reserve capacity margins in power regions to
	meet expected peak demand.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter D, Chapter 39, Utilities Code, is
	amended by adding Section 39.161 to read as follows:
	Sec. 39.161.  POWER REGION RESERVE MARGIN. (a)  Not later
	than July 1 of each year, the independent organization certified
	under Section 39.151 for each power region shall study and project
	for the following year the:
	(1)  anticipated and installed generation capacity
	located in or capable of delivering electricity to the power
	region;
	(2)  expected peak demand in the power region; and
	(3)  amount of reserve capacity necessary to maintain a
	reliability standard set by the commission for the power region.
	(b)  If the independent organization determines under
	Subsection (a) that the amount of reserve capacity available for
	the following year will not maintain the reliability standard
	relative to the expected peak demand and a capacity deficit may
	occur, the organization shall acquire incremental capacity through
	opt-in load participation programs, with at least 20 percent of the
	incremental capacity being attained from each of the following
	classes:
	(1)  residential;
	(2)  commercial; and
	(3)  industrial.
	SECTION 2.  This Act takes effect September 1, 2013.
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