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.)
Click here to see the committee vote

	A BILL TO BE ENTITLED
	AN ACT
	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 [one]
	written notices [notice] of the date the fixed rate product will
	expire. The notices [notice] must be provided:
	(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)  [be sent to the customer's billing address by mail
	at least 30, but not more than 60, days preceding the date the
	contract will expire;
	[(2) be sent to the customer's e-mail address, if
	available to the provider and if the customer has agreed to receive
	notices electronically, at least 30, but not more than 60, days
	preceding the date the contract will expire;
	[(3)] for a notice provided by mail, include in a manner
	visible from [on] the outside of the envelope in which the notice is
	sent, a statement that reads: "Contract Expiration Notice. See
	Enclosed.";
	(2) [(4)]  if included with a customer's bill, be
	printed on a separate page or included as a separate document; [and]
	(3) [(5)]  include a description of any fees or charges
	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) [(c)]  A retail electric provider shall include on each
	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) [(d)]  No provision in this section shall be construed to
	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.
	* * * * *