Background

In 1999, the Texas Legislature passed, and then-Governor George W. Bush signed, Senate Bill 7 (SB7), which restructures the state's electric utility industry. The bill also requires each investor-owned electric utility, including CenterPoint Energy, to reduce Texas customers' energy consumption by a minimum of 10% of the utility's annual growth in demand in Texas by January, 2004. These utilities were required to achieve this goal through standard offer programs or limited target market programs that will result in reduced energy consumption. In March of 2000, the Public Utilities Commission of Texas (PUCT) passed Substantive Rule §251.181, which implements the energy efficiency goal of SB7. Interested parties, the state's investor-owned utilities, and PUCT staff then developed energy efficiency program templates that are being adopted, customized, and offered throughout Texas by the utilities.

In May of 2008, the PUCT passed a new Substantive Rule §25.181 to incorporate House Bill 3693, which increased energy efficiency goals of the state's investor-owned utilities.

CenterPoint Energy is offering the following programs:

• Commercial and Industrial Standard Offer
• Residential and Small Commercial Standard Offer
• ENERGY STAR® Homes Market Transformation
• Residential ENERGY STAR® Windows Market Transformation
• Load Management Standard Offer
• Hard-to-Reach Customer Standard Offer
• Multifamily Water and Space Heating Programs

Goal

While the primary goal of the programs is to reduce peak demand within CenterPoint Energy's service territory, several secondary goals provide the basis for the various program rules and procedures. These secondary goals are to:

• Make energy efficiency incentive programs available to all customer classes
• Encourage private sector delivery of energy efficiency products and services
• Maximize customer energy and bill savings
• Stimulate investment in efficient technologies that are most likely to reduce CenterPoint Energy's peak capacity requirements
• Acquire cost-effective energy efficiency resources