H.B. No. 1822
AN ACT
relating to the use of certain terms by certificated
telecommunications utilities, retail electric providers, and
electric utilities in retail bills, and to notice of expiration or
price change for certain retail electric products.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 17.003(c), Utilities Code, is amended to
read as follows:
(c) The commission shall adopt and enforce rules to require
a certificated telecommunications utility, a retail electric
provider, or an electric utility to give clear, uniform, and
understandable information to customers about rates, terms,
services, customer rights, and other necessary information as
determined by the commission. The rules must include a list of
defined terms common to the telecommunications and electricity
industries and require that applicable terms be labeled uniformly
on each retail bill sent to a customer by a certificated
telecommunications utility, retail electric provider, or electric
utility to facilitate consumer understanding of relevant billing
elements.
SECTION 2. Section 17.004(a), Utilities Code, is amended to
read as follows:
(a) All buyers of telecommunications and retail electric
services are entitled to:
(1) protection from fraudulent, unfair, misleading,
deceptive, or anticompetitive practices, including protection from
being billed for services that were not authorized or provided;
(2) choice of a telecommunications service provider, a
retail electric provider, or an electric utility, where that choice
is permitted by law, and to have that choice honored;
(3) information in English and Spanish and any other
language as the commission deems necessary concerning rates, key
terms and conditions, and the basis for any claim of environmental
benefits of certain production facilities;
(4) protection from discrimination on the basis of
race, color, sex, nationality, religion, marital status, income
level, or source of income and from unreasonable discrimination on
the basis of geographic location;
(5) impartial and prompt resolution of disputes with a
certificated telecommunications utility, a retail electric
provider, or an electric utility and disputes with a
telecommunications service provider related to unauthorized
charges and switching of service;
(6) privacy of customer consumption and credit
information;
(7) accuracy of metering and billing;
(8) bills presented in a clear, readable format and
easy-to-understand language that uses defined terms as required by
commission rules adopted under Section 17.003;
(9) information in English and Spanish and any other
language as the commission deems necessary concerning low-income
assistance programs and deferred payment plans;
(10) all consumer protections and disclosures
established by the Fair Credit Reporting Act (15 U.S.C. Section
1681 et seq.) and the Truth in Lending Act (15 U.S.C. Section 1601
et seq.); and
(11) after retail competition begins as authorized by
the legislature, programs provided by retail electric providers
that offer eligible low-income customers energy efficiency
programs, an affordable rate package, and bill payment assistance
programs designed to reduce uncollectible accounts.
SECTION 3. Section 17.102, Utilities Code, is amended to
read as follows:
Sec. 17.102. RULES RELATING TO CHOICE. The commission
shall adopt and enforce rules that:
(1) ensure that customers are protected from deceptive
practices employed in obtaining authorizations of service and in
the verification of change orders, including negative option
marketing, sweepstakes, and contests that cause customers to
unknowingly change their telecommunications service provider,
retail electric provider, or electric utility, where choice is
permitted by law;
(2) provide for clear, easily understandable
identification, in each bill sent to a customer, of all
telecommunications service providers, retail electric providers,
or electric utilities submitting charges on the bill;
(3) ensure that every service provider submitting
charges on the bill is clearly and easily identified on the bill
along with its services, products, and charges, using defined terms
as required by commission rules adopted under Section 17.003;
(4) provide that unauthorized changes in service be
remedied at no cost to the customer within a period established by
the commission;
(5) require refunds or credits to the customer in the
event of an unauthorized change; and
(6) provide for penalties for violations of commission
rules adopted under this section, including fines and revocation of
certificates or registrations, by this action denying the
certificated telecommunications utility, the retail electric
provider, or the electric utility the right to provide service in
this state, except that the commission may not revoke a certificate
of convenience and necessity of an electric utility except as
provided by Section 37.059 or a certificate of convenience and
necessity of a telecommunications utility except as provided by
Section 54.008.
SECTION 4. Section 17.151(a), Utilities Code, is amended to
read as follows:
(a) A service provider, retail electric provider, or
billing agent may submit charges for a new product or service to be
billed on a customer's telephone or retail electric bill on or after
the effective date of this section only if:
(1) the service provider offering the product or
service has thoroughly informed the customer of the product or
service being offered, including all associated charges, and has
explicitly informed the customer that the associated charges for
the product or service will appear on the customer's telephone or
electric bill;
(2) the customer has clearly and explicitly consented
to obtain the product or service offered and to have the associated
charges appear on the customer's telephone or electric bill and the
consent has been verified as provided by Subsection (b); [and]
(3) the service provider offering the product or
service and any billing agent for the service provider:
(A) has provided the customer with a toll-free
telephone number the customer may call and an address to which the
customer may write to resolve any billing dispute and to answer
questions; and
(B) has contracted with the billing utility to
bill for products and services on the billing utility's bill as
provided by Subsection (c); and
(4) the service provider, retail electric provider, or
billing agent uses defined terms on the bill as required by
commission rules adopted under Section 17.003.
SECTION 5. Subchapter C, Chapter 39, Utilities Code, is
amended by adding Section 39.112 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 one written
notice of the date the fixed rate product will expire. The notice
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) include on the outside of the envelope in which the
notice is sent, a statement that reads: "Contract Expiration
Notice. See Enclosed.";
(4) if included with a customer's bill, be printed on a
separate page; and
(5) include a description of any fees or charges
associated with the early termination of the customer's fixed rate
product.
(c) A retail electric provider shall include on each billing
statement the end date of the fixed rate product.
(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 6. The Public Utility Commission of Texas shall
adopt rules consistent with this Act not later than December 1,
2009.
SECTION 7. This Act takes effect September 1, 2009.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1822 was passed by the House on March
26, 2009, by the following vote: Yeas 146, Nays 0, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1822 on May 29, 2009, by the following vote: Yeas 138, Nays 0,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1822 was passed by the Senate, with
amendments, on May 26, 2009, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor