By Cyrus Reed
As electricity costs continue to rise, Texas energy efficiency programs are becoming increasingly important for helping residents lower bills and reduce demand on the grid. At a recent Public Utility Commission of Texas meeting, officials, utilities, and advocates discussed expanded access to programs, new policy developments, and upcoming opportunities to grow energy savings across the state.
Rising Electricity Costs Highlight the Importance of Energy Savings Programs
A packed room at the new George H Bush building at 1801 Congress Avenue just north of the Capitol showed the need for energy savings programs as electric bills continue to climb.
The meeting in question was the “Energy Efficiency Implementation Project” meeting held twice a year. Sponsored by the Public Utility Commission of Texas, the meeting brought the eight private utilities that are required each year to meet certain demand reduction and energy savings goals, PUCT staff, consumer advocates and the many implementers who help actually implement the programs - from insulators, to general contractors, to energy management, to weatherization providers. You can watch a recording of the meeting here.
The format was somewhat different this year, including outside presenters, some important updates and a “speed-round” of utility presentations on unique challenges they were facing and how they were planning to overcome them. What was clear, however, is how important these programs continue to be for the Texans who know about them, but also how much work remains to be done. As we have said consistently, programs that save energy or shift and reduce peak demand are the cheapest, quickest and cleanest ways to meet our energy needs.
New PUCT Rule Changes Expand Access for Low-Income and Hard-to-Reach Texans
First up in the discussion was a review of the recent rule changes approved by the PUCT. Under the new rules, staff showed how the definitions in the rule for programs designed to serve “low-income” Texans and “hard-to-reach” Texans are being expanded to give utilities more flexibility. In particular, the definition of “low-income” is now matching federal definitions of 80% of AMI, while hard-to-reach includes both that population, but also small businesses and others who have not been served in more than five years, as well as rural communities that are often left out of the programs, which tend to focus on urban centers.
Texas Energy Poverty Research Institute Data Shows Texans Struggling With Energy Bills
Project Manager Veronique Placke gave an excellent presentation from TEPRI - the Texas Energy Poverty Research Institute. Placke provided the results from their annual energy survey which found that a majority of Texans were struggling to pay their electric bills. She also discussed some new tools they have developed to help utilities identify low and moderate income households that can be better served by low-income and hard-to-reach programs, and provided some Texas energy cost projections showing that electricity costs have risen some 30% over the past five years and are likely to rise another 30% over the next five years. The presentation galvanized opinions in the room but also reemphasized how important energy savings programs could be to provide a buttress against these rising costs.
New Texas Energy Waste Advisory Committee Formed After Passage of HB 5323
PUCT staff announced that the first meeting of the new Texas Energy Waste Advisory Committee will be held March 30th. The Committee - the result of the passage of HB 5323 supported by the Sierra Club - is composed of members of 8 state agencies that deal with energy efficiency and demand response programs - will have an initial virtual meeting to discuss organization, but should eventually have a process for stakeholder input. The Committee is required to publish a report by December, 2026, including potential recommendations to the legislature on how to grow energy savings and demand reduction programs.
Texas Considers Updating Building Energy Codes for New Construction
Eddy Trevino, director of SECO (State Energy Conservation Office) - a unit of the Texas Comptroller of Public Accounts - announced that they are still in the process of implementing SB 1253 (again, supported by the Sierra Club) which requires them to consider potential adoption of the latest energy codes for new residential and commercial building construction - as well as a high performance standard for state-funded buildings and public universities.
SECO sought public input on both actions in late 2025, and those comments are being reviewed by the Texas Energy Laboratory, a unit of Texas A&M. Sierra Club provided comments in both cases in support of the adoption of new more advanced codes. The Energy Lab will also be assessing the new codes and the high performance standards to see if they would be cost-effective to adopt and will have a recommendation later this year on both fronts. If all goes well, there could be rulemaking in late summer or early fall.
Given that the current Comptroller - Kelly Hancock - lost in the Republican primary, the new Comptroller could ultimately determine whether Texas moves forward on more advanced building energy codes, unless Hancock decides to move before then. Most major cities in Texas have already adopted more advanced codes than the current state minimum, which is stuck on the 2015 International Residential Code (for residential buildings) and the 2015 International Energy Conservation Code for commercial buildings. Raising the codes to the 2024 versions of the codes could save 10 to 15 percent energy use in new construction.
Inflation Reduction Act Home Energy Rebates (HOMES and HEARS) Could Bring $700 Million to Texas
Trevino also said the state is still moving forward with two programs approved under the 2022 Inflation Reduction Act known as HOMES and HEARS, which are intended to provide rebates for homeowners who either purchase more advanced lower energy use appliances or implement energy efficiency retrofits in their homes (or apartments). While many IRA programs were canceled by the Trump Administration, these programs are (as of today) still moving forward and could mean some $700 million would be available as soon as this summer. Still, Trevino expressed caution as they have yet to receive final approval from the Department of Energy to move forward and are still assessing potential third-party administrators.
Texas Utilities Plan New Energy Efficiency Programs for 2026 and 2027
All eight utilities provided some insight into their plans in 2026 and 2027 to continue to run programs. Centerpoint Energy pointed out that a survey of their customers found that while messages like saving energy and money, helping the environment and reducing stress on the electric grid were all good, positive messaging, the most impactful message to get people interested in their programs was around improving comfort in the home. Other utilities are testing out new programs like smart thermostats, heat pumps and even the use of batteries to reduce peak use on the grid.
Upcoming PUCT Filings and Opportunities for Public Participation
All eight utilities will be filing their Energy Efficiency Plan and Report for 2027 on April 1, 2026 in PUCT project 59166. Those plans will lay out their expected budgets and programs for 2027. PUCT staff announced their intention to hold some public virtual meetings in late April or early May to allow the utilities to present their plans and get feedback from stakeholders. We will let you know how to participate.
Moreover, PUCT staff let the public know that they are continuing to assess the need to make additional changes in the rules governing energy efficiency programs and will be filing questions - soon - in Docket 56157. Sierra Club filed a petition for rulemaking back in 2022, and already answered some initial questions back in 2024. While the initial changes made by the PUCT last year were ones we supported, we are still hoping that the PUCT will expand the size and reach of the programs so that more Texans can save money, save energy, help the environment - and improve comfort in their homes.
What’s Next for Energy Efficiency in Texas
Look for more news on future rulemaking, the Texas Energy Waste Advisory Committee, and the utility 2027 energy efficiency plans in the coming months. Finally, Sierra Club is working with two of the utilities - Centerpoint Energy - and AEP Texas to hold some educational forums in the coming months on how to save energy and take advantage of their programs.