Texas House Bill HB995

Texas 2009 - 81st Regular

• Out of House Committee: 4/14/09

Caption

Relating to notice of expiration and price change in certain retail electric service contracts.

Impact

The potential impacts of HB 995 on state laws are notable, particularly in the context of consumer rights within utility regulations. By enforcing a standardized requirement for notice on expiration and price changes, the bill aims to empower consumers and enable them to make informed choices regarding their electric service. The law is designed to apply only to contracts entered into or renewed after its effective date, thus allowing existing contracts to continue under the previous legal framework, which could mitigate immediate disruption in the market.

Summary

House Bill 995 seeks to enhance consumer protections in the retail electric service sector by mandating that providers notify residential customers with fixed price contracts regarding expiration dates and any forthcoming price changes. This legislation specifies that the notice must be communicated in writing at least 60 days prior to any change, ensuring that consumers are adequately informed and have the opportunity to shop for alternative electricity providers before any price alteration takes effect. The bill reflects a significant step towards increasing transparency in the electric service industry.

Contention

While the bill is generally viewed positively by consumer advocacy groups, some stakeholders in the energy sector may express concerns regarding the administrative burden that such notification requirements could create for providers. These stakeholders might argue that the cost of compliance could be passed on to consumers, thus negating some benefits of the legislation. Nevertheless, the overarching goal of protecting consumers by ensuring they receive timely and critical information about their energy contracts stands as a compelling argument in favor of the bill.