TX SB2994

Establishes mandatory annual demand reduction goals for electric utilities based on customer count, ranging from 2,500 kilowatts for utilities with fewer than 300,000 customers to 62,500 kilowatts for utilities with more than 5 million customers in competitive areas, with higher targets (5,000 to 125,000 kilowatts) for utilities in non-competitive areas that must also include demand response programs

Requires utilities to achieve annual energy savings of at least 75% of their 2024 reported energy savings levels and mandates that minimum goals increase by 2.5% annually from 2027 through 2030, with commission updates to goals beginning in 2031

Increases the minimum low-income energy efficiency program funding requirement from 10% to 15% of each utility's total energy efficiency budget, with provisions allowing utilities to request good cause exemptions to reduce this to 10%

Creates a performance incentive structure allowing utilities that exceed demand reduction and energy savings goals to receive up to 20% of net benefits (avoided costs minus program costs), capped at 30% of overall program spending

Requires the Public Utility Commission to adopt implementing rules by March 1, 2027, and exempts municipally owned utilities subject to Section 39.9051 and electric cooperatives from the section's requirements while allowing them to voluntarily offer such programs