Texas House Bill HB1100

Texas 2009 - 81st Regular

Caption

Relating to the date of payment for retail electric services.

Impact

The enactment of HB1100 will primarily influence the relationship between retail electric providers and their customers. By defining that a payment sent via mail is considered made when postmarked, it protects consumers from late fees and penalties that could arise from mail delays not within their control. This aligns with consumer protection efforts and promotes transparency within the utilities sector, allowing users to have confidence in the payment process.

Summary

House Bill 1100 establishes specific guidelines regarding the timing of payments made for retail electric services within Texas. The bill amends Chapter 181 of the Utilities Code by introducing a new subchapter that characterizes how the date of payment is determined when payments are mailed. This legislation aims to provide clarity and assurance for both consumers and providers regarding when a payment is considered officially made. Under this bill, payment is regarded as made on the date the envelope is postmarked, given certain conditions are met.

Contention

While the bill aims to streamline payment processes, it could lead to contention among utility companies regarding their revenue flow and accounting practices. Critics may argue that this change could potentially complicate cash flow management for retail providers, as they may need to reconcile postmarked payments that could arrive later than expected. Additionally, stakeholders may concern themselves with how this affects existing contracts that specify payment terms, as the bill clarifies the point of consideration for payment timing.