TX Restructuring Mandates Renewables

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Texas bill on electric utility restructuring, signed into law by Governor George W. Bush on June 18, mandates the development of renewable electric power generation. The law requires a total of 2,000 megawatts (MW) of new power production from renewables by 2009, with incremental levels specified by 2003, 2005, and 2007. All for-profit electricity providers in Texas must meet these requirements either through direct generation or through a credits trading program. These are the most aggressive requirements of any state deregulation law to date. The Texas Electric Restructuring bill also includes provisions to substantially reduce pollution emissions from 130 “grandfathered” power plants in Texas by May 1, 2003, and to encourage energy efficiency improvements through incentives and customer access to energy efficiency providers.