TX SB2074

Requires the Public Utility Commission of Texas, in coordination with ERCOT, to conduct a study of the four coincident peak (4CP) program used to calculate and assign demand charges

Study must analyze historic and current cost shifting that occurs when retail electric customers avoid coincident peak charges, and identify potential solutions to prevent such avoidance

Requires examination of large loads with backup generation on the customer's side of the meter and the program's effects on peak demand

Must include comparative analysis of alternative methods for calculating demand charges, including more frequent coincident peaks or longer peak periods, with assessment of reliability and market impacts

Report must be submitted to the legislature by December 1, 2026; the act takes effect September 1, 2025, and expires January 1, 2027