Bill Text: TX SB2194 | 2021-2022 | 87th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Comm_Sub.html
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-Comm_Sub.html
By: Schwertner, Menéndez | S.B. No. 2194 | |
(In the Senate - Filed April 12, 2021; April 12, 2021, read | ||
first time and referred to Committee on Jurisprudence; | ||
April 19, 2021, reported favorably by the following vote: Yeas 5, | ||
Nays 0; April 19, 2021, sent to printer.) | ||
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relating to the regulation of certain retail electric products. | ||
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) A retail electric provider may not offer a wholesale | ||
indexed product to a residential or small commercial customer. | ||
(c) A retail electric provider may enroll a customer other | ||
than a residential and small commercial customer in a wholesale | ||
indexed product if the provider obtains before the customer's | ||
enrollment the customer's written and signed acknowledgment that | ||
the customer accepts the potential price risks associated with a | ||
wholesale indexed product. | ||
(d) An acknowledgment described by Subsection (c) must | ||
include the following statements, in clear, boldfaced text, | ||
accompanied by the signature of the customer: | ||
(1) "I understand the volatility and fluctuation of | ||
wholesale energy pricing. I understand that I will be responsible | ||
for the fluctuations in wholesale energy prices and that my energy | ||
bill can be multiple times higher in a month with high wholesale | ||
energy prices."; | ||
(2) "I understand that the maximum wholesale energy | ||
rate in the wholesale energy market is much higher than the average | ||
wholesale energy rate and that energy prices can remain at the | ||
maximum wholesale energy rate for many hours."; and | ||
(3) "I acknowledge that management of energy use | ||
during periods of high energy prices times is critical to | ||
maintaining financial solvency.". | ||
(e) A retail electric provider must keep on file an | ||
acknowledgment described by Subsection (c) for each customer while | ||
the customer is enrolled with the provider in a 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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(1) not less than 90 days and not more than 119 days | ||
before the date the contract will expire, for the first notice; | ||
(2) not less than 60 days and not more than 89 days | ||
before the date that the contract will expire, for the second | ||
notice; and | ||
(3) not less than 30 days and not more than 59 days | ||
before the date that the contract will expire, for the third notice. | ||
(c) Each notice under Subsection (b) must be provided to the | ||
customer: | ||
(1) by mail at the customer's billing address; | ||
(2) by e-mail, if the customer's e-mail address is | ||
available to the provider and if the customer has agreed to receive | ||
notices by e-mail; and | ||
(3) by text message, if the customer's text messaging | ||
contact information is available to the provider and if the | ||
customer has agreed to receive notices by text message. | ||
(d) A notice provided under Subsection (b) must: | ||
(1) [ |
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[ |
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[ |
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visible from [ |
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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; | ||
(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 those products; and | ||
(5) include the pricing terms for the default renewal | ||
product required under Subsection (f). | ||
(e) [ |
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billing statement, in boldfaced and underlined text, the end date | ||
of the fixed rate product. | ||
(f) Except as provided by Subsection (h), 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. The default renewal product may be: | ||
(1) a fixed rate product; or | ||
(2) a month-to-month product in which the price the | ||
customer pays for electricity may vary between billing cycles. | ||
(g) A default renewal product that is a month-to-month | ||
product must be based on clear and easily understood terms | ||
described in the customer's most recent contract with the retail | ||
electric provider. | ||
(h) 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 customer's fixed | ||
rate product remains in effect until: | ||
(1) the provider provides notice of the expiration of | ||
the contract in accordance with this section and enrolls the | ||
customer in a default renewal product; or | ||
(2) the customer selects another retail electric | ||
product. | ||
(i) [ |
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prohibit the commission from adopting rules that would provide a | ||
greater degree of customer protection. | ||
SECTION 3. The changes in law made by this Act apply only to | ||
an enrollment or re-enrollment of a customer in a retail electric | ||
product that is executed on or after the effective date of this Act. | ||
An enrollment or re-enrollment 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 4. This Act takes effect September 1, 2021. | ||
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