Bill Text: TX SB2194 | 2021-2022 | 87th Legislature | Engrossed
Bill Title: Relating to the regulation of retail electric providers.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Engrossed - Dead) 2021-05-04 - Referred to State Affairs [SB2194 Detail]
Download: Texas-2021-SB2194-Engrossed.html
By: Schwertner, et al. | S.B. No. 2194 |
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relating to the regulation of retail electric providers. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter C, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.110 to read as follows: | ||
Sec. 39.110. WHOLESALE INDEXED PRODUCTS PROHIBITED. (a) | ||
In this section, "wholesale indexed product" means a retail | ||
electric product in which the price a customer pays for electricity | ||
includes a direct pass-through of real-time settlement point prices | ||
determined by the independent organization certified under Section | ||
39.151 for the ERCOT power region. | ||
(b) An aggregator, a broker, or a retail electric provider | ||
may not offer a wholesale indexed product to a residential or small | ||
commercial customer. | ||
(c) An aggregator, a broker, or a retail electric provider | ||
may enroll a customer other than a residential and small commercial | ||
customer in a wholesale indexed product only if the provider, | ||
aggregator, or broker obtains before the customer's enrollment an | ||
acknowledgment signed by the customer that the customer accepts the | ||
potential price risks associated with a wholesale indexed product. | ||
(d) An acknowledgment required by Subsection (c) must | ||
include the following statement, in clear, boldfaced text: | ||
"I understand that the volatility and fluctuation of | ||
wholesale energy pricing may cause my energy bill to be | ||
multiple times higher in a month in which wholesale | ||
energy prices are high. I understand that I will be | ||
responsible for charges caused by fluctuations in | ||
wholesale energy prices." | ||
(e) An acknowledgment required by Subsection (c) may be | ||
included as an addendum to a contract. | ||
(f) A retail electric provider that provides a wholesale | ||
indexed product to a customer must keep on file the acknowledgment | ||
required by Subsection (c) for each customer while the customer is | ||
enrolled with the retail electric provider in the wholesale indexed | ||
product. | ||
SECTION 2. Section 39.112, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 39.112. NOTICE OF EXPIRATION AND PRICE CHANGE. (a) In | ||
this section, "fixed rate product" means a retail electric product | ||
with a term of at least three months for which the price for each | ||
billing period, including recurring charges, does not change | ||
throughout the term of the contract, except that the price may vary | ||
to reflect actual changes in transmission and distribution utility | ||
charges, changes to ERCOT or Texas Regional Entity administrative | ||
fees charged to loads, or changes to federal, state, or local laws | ||
that result in new or modified fees or costs that are not within the | ||
retail electric provider's control. | ||
(b) A retail electric provider shall provide a residential | ||
customer who has a fixed rate product with at least three [ |
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written notices [ |
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expire. The notices [ |
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of the contract period and in intervals that allow for, as | ||
practicable, even distribution of the notices throughout the last | ||
third of the contract period. The final notice for a contract with | ||
a period of more than four months must be provided at least 30 days | ||
before the date that the contract will expire. The final notice for | ||
a contract with a period of less than four months must be provided | ||
at least 15 days before the date that the contract will expire. | ||
(c) The retail electric provider must provide each notice | ||
required by Subsection (b) to the customer by mail at the customer's | ||
billing address, unless the customer has opted to receive | ||
communications electronically from the retail electric provider. | ||
(d) If the retail electric provider has access to customer | ||
contact information that allows the provider to send the customer a | ||
text message or call the customer, and the customer has agreed to | ||
receive notices by text message or call, the retail electric | ||
provider may provide additional notice to the customer by text | ||
message or call of the date the fixed rate product will expire. | ||
Notice provided by text message or call does not constitute notice | ||
under Subsection (b). | ||
(e) A notice required by Subsection (b) must: | ||
(1) for a notice provided by mail, [ |
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outside of the envelope in which the notice is sent, a statement | ||
that reads: "Contract Expiration Notice. See Enclosed."; | ||
(2) [ |
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printed on a separate page or included as a separate document; [ |
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(3) [ |
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associated with the early termination of the customer's fixed rate | ||
product; and | ||
(4) describe any renewal offers the retail electric | ||
provider chooses to make available to the customer and identify | ||
methods by which the customer may obtain the contract documents for | ||
each of the offered products. | ||
(f) The final notice provided under Subsection (b) must | ||
include the pricing terms for the default renewal product required | ||
by Subsection (h). | ||
(g) [ |
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billing statement, in boldfaced and underlined text, the end date | ||
of the fixed rate product. | ||
(h) Except as provided by Subsection (j), if a customer does | ||
not select another retail electric product before the expiration of | ||
the customer's contract term with a retail electric provider, the | ||
provider shall automatically serve the customer through a default | ||
renewal product that the customer may cancel at any time without a | ||
fee. The default renewal product must be: | ||
(1) a month-to-month product in which the price the | ||
customer pays for electricity may vary between billing cycles; and | ||
(2) based on clear terms designed to be easily | ||
understood by the average customer. | ||
(i) A retail electric provider shall include in each | ||
contract for service the terms of the default renewal product that | ||
the customer will automatically be enrolled in under Subsection (h) | ||
if the customer does not select another retail electric product | ||
before the expiration of the contract term. | ||
(j) If a retail electric provider does not provide notice of | ||
the expiration of a customer's contract with the provider in | ||
accordance with this section and the customer does not select | ||
another retail electric product before the expiration of the | ||
customer's contract term with the provider, the retail electric | ||
provider must continue to serve the customer under the pricing | ||
terms of the fixed rate product contract until: | ||
(1) the provider provides notice of the expiration of | ||
the contract in accordance with this section; or | ||
(2) the customer selects another retail electric | ||
product. | ||
(k) [ |
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prohibit the commission from adopting rules that would provide a | ||
greater degree of customer protection. | ||
SECTION 3. (a) Section 17.004, Utilities Code, is amended | ||
by adding Subsection (a-1) to read as follows: | ||
(a-1) Notwithstanding any other law, a buyer of retail | ||
electric service has the right to: | ||
(1) avoid discontinuation of electric service for | ||
nonpayment on a Saturday or Sunday or a holiday observed by an | ||
electric utility or retail electric provider, unless the utility or | ||
provider is open to accept payment and restore service on that day; | ||
(2) avoid discontinuation of electric service for a | ||
period of 60 days of nonpayment if an electric utility or retail | ||
electric provider receives written notice from a medical doctor | ||
licensed to practice in this state or a state that shares a border | ||
with this state that certifies that discontinuation of service | ||
would create a life-threatening situation for the customer or a | ||
permanent resident of the customer's household; | ||
(3) negotiate with a retail electric provider a | ||
deferred payment plan to avoid discontinuation of electric service | ||
for a delinquent account in accordance with the utility's or | ||
provider's terms and conditions; | ||
(4) avoid discontinuation of electric service or | ||
refusal of service for a location because a former occupant at that | ||
location, not of the same household, failed to pay a previous bill; | ||
(5) avoid disconnection of electric service during | ||
periods when temperatures exceed 100 degrees Fahrenheit or fall | ||
below 32 degrees Fahrenheit and at times described by Section | ||
39.101(h); | ||
(6) avoid discontinuation of electric service on | ||
account of nonpayment if the customer has been approved for Low | ||
Income Home Energy Assistance Program benefits in an amount equal | ||
to the delinquent balance, the customer has provided notice of the | ||
approval to the electric utility, and the benefits are payable | ||
before the 30th day after the date the customer provides the notice; | ||
(7) avoid discontinuation of electric service for | ||
failure to pay a portion of any bill that is in dispute if the | ||
customer provides a deposit for the amount in dispute; | ||
(8) avoid discontinuation of electric service for | ||
nonpayment of bills if, as of 8 a.m. on the scheduled date of | ||
disconnection, a freeze warning has been issued by the National | ||
Weather Service for the county of the scheduled disconnection; | ||
(9) avoid discontinuation of electric service for | ||
nonpayment of bills if, as of 8 a.m. on the scheduled date of | ||
disconnection, an excessive heat warning has been issued by the | ||
National Weather Service for the county of the scheduled | ||
disconnection; | ||
(10) request a written explanation for the reason a | ||
retail electric provider refuses to serve a customer if the utility | ||
or provider refuses to initially serve the customer; | ||
(11) receive a written explanation from an electric | ||
provider that refuses to initially serve a customer, after the | ||
customer provides the utility or provider with a valid mailing | ||
address, that includes: | ||
(A) the reason service is being refused; and | ||
(B) a description of the actions the customer | ||
must take in order to receive service; | ||
(12) be given accurate and understandable information | ||
concerning the price and terms of service for electric service; and | ||
(13) have access through the commission to an | ||
independent administrative process that provides a simple, quick, | ||
and effective means of resolving complaints about electric service | ||
and bills for customers who are unable to resolve disputed bills | ||
directly with a retail electric provider. | ||
(b) The Public Utility Commission of Texas shall adopt rules | ||
as required to implement, administer, and enforce Section | ||
17.004(a-1), Utilities Code, as added by this section, not later | ||
than July 1, 2022. | ||
SECTION 4. The changes in law made by this Act apply only to | ||
an enrollment or reenrollment of a customer in a retail electric | ||
product that is executed on or after the effective date of this Act. | ||
An enrollment or reenrollment of a customer in a retail electric | ||
product that is executed before the effective date of this Act is | ||
governed by the law as it existed immediately before the effective | ||
date of this Act, and that law is continued in effect for that | ||
purpose. | ||
SECTION 5. This Act takes effect September 1, 2021. |