Texas House Bill HB1160

Texas 2009 - 81st Regular

Caption

Relating to notice of contract expiration in retail electric service contracts.

Impact

The implementation of HB 1160 is expected to positively impact state laws governing retail electric services. It establishes a clear obligation for electric providers to communicate vital information to consumers, fostering a more transparent and accountable service environment. By requiring notice of expiration, the bill aims to alleviate potential consumer distress associated with unexpected contract renewals or changes in pricing that can occur without proper warning. As a result, customers can make more informed decisions regarding their electric service options.

Summary

House Bill 1160 aims to enhance consumer protection for residential customers entering fixed price contracts for retail electric service. The bill mandates that retail electric providers must give written notification to customers about the expiration of their contracts. Specifically, this notification must be sent to the customer's billing address at least 60 days prior to the contract's expiration date. This measure is designed to ensure that customers are informed and have adequate time to review their options before their fixed-rate agreements end.

Contention

While the bill has garnered support for its intention to protect consumers, there may be concerns regarding the administrative burden it could place on retail electric providers. Some industry stakeholders argue that the requirement to send mailed notifications could lead to increased operational costs, which might be passed on to consumers. Moreover, the implications of existing marketing practices by electric providers might necessitate a reevaluation to accommodate these new notice requirements, potentially altering how services are marketed and contracted in the future.