Texas 2009 - 81st Regular

Texas Senate Bill SB1865 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R11392 TJS-F
2	2	By: Ellis S.B. No. 1865
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the provider of last resort.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 39.106, Utilities Code, is amended by
10	10	amending Subsections (b), (c), and (g) and adding Subsections (h)
11	11	and (i) to read as follows:
12	12	(b) A provider of last resort shall offer a [standard]
13	13	retail service package approved by the commission for each class of
14	14	customers designated by the commission. Except as provided by
15	15	Subsections (g) and (h), the commission shall ensure that:
16	16	(1) the price of service from a provider of last resort
17	17	reflects the market price of providing short-term service; and
18	18	(2) for residential and small commercial customers,
19	19	the computation of price for service from a provider of last resort
20	20	does not include a multiplier of more than 120 percent of the
21	21	marginal clearing price of energy in the power region [at a fixed,
22	22	nondiscountable rate approved by the commission].
23	23	(c) In the territory for which it is the provider of last
24	24	resort, a [A] provider of last resort shall provide, without
25	25	interruption, the [standard] retail service package approved by the
26	26	commission at the price prescribed by Subsection (b) or (g) to a
27	27	[any requesting] customer of a retail electric provider declared to
28	28	be in default under commission rules. If a customer receiving
29	29	service from the provider of last resort under this subsection does
30	30	not switch to another electric service plan before the 60th day
31	31	after the date on which the default is declared, the provider may
32	32	switch the customer to a month-to-month service plan that is at
33	33	least as favorable to the customer as a month-to-month service plan
34	34	the provider offers to new or renewing customers with similar
35	35	electric service demands. The plan to which the customer is
36	36	switched must comply with the commission's consumer protection
37	37	rules. After a switch is completed under this subsection, the
38	38	customer is not considered to be a customer of a [in the territory
39	39	for which it is the] provider of last resort.
40	40	(g) This subsection applies only if the independent
41	41	organization certified under Section 39.151 imposes a fee under
42	42	Section 39.151(d-1)(7). The commission shall establish a mechanism
43	43	by which a residential or small commercial customer of a provider of
44	44	last resort is charged by the provider of last resort a price for a
45	45	commission-approved retail service package that is not higher than
46	46	the average price of residential plans with monthly terms offered
47	47	on the Internet website at http://www.powertochoose.com on the date
48	48	the customer begins service with the provider of last resort. The
49	49	commission by rule shall provide that a provider of last resort may
50	50	not require a residential or small commercial customer receiving
51	51	provider of last resort services to pay a deposit as a condition of
52	52	receiving those services at the price prescribed by this
53	53	subsection. The independent organization shall use the proceeds of
54	54	the fee imposed under Section 39.151(d-1)(7) to compensate a
55	55	provider of last resort for the difference between the price for the
56	56	retail package approved by the commission for provider of last
57	57	resort services provided to residential and small commercial
58	58	customers and the price computed in accordance with commission
59	59	rules that would reasonably compensate a provider of last resort
60	60	under the then current market conditions, considering the
61	61	short-term and volatile nature of provider of last resort services.
62	62	The independent organization shall also use the proceeds of the fee
63	63	imposed under Section 39.151(d-1)(7) to compensate a provider of
64	64	last resort for bad debt related to providing provider of last
65	65	resort services [In the event that a retail electric provider fails
66	66	to serve any or all of its customers, the provider of last resort
67	67	shall offer that customer the standard retail service package for
68	68	that customer class with no interruption of service to any
69	69	customer].
70	70	(h) Notwithstanding Subsection (g), in determining the
71	71	price that would reasonably compensate a provider of last resort
72	72	under Subsection (g), the commission, until December 31, 2010,
73	73	shall use the price for provider of last resort services that was in
74	74	effect January 1, 2009.
75	75	(i) For purposes of this section, "small commercial
76	76	customer" means a commercial customer that has a peak demand of less
77	77	than 50 kilowatt hours during any 12-month period.
78	78	SECTION 2. Section 39.151(d-1), Utilities Code, is amended
79	79	to read as follows:
80	80	(d-1) The commission may:
81	81	(1) require an independent organization to provide
82	82	reports and information relating to the independent organization's
83	83	performance of the functions prescribed by this section and
84	84	relating to the organization's revenues, expenses, and other
85	85	financial matters;
86	86	(2) prescribe a system of accounts for an independent
87	87	organization;
88	88	(3) conduct audits of an independent organization's
89	89	performance of the functions prescribed by this section or relating
90	90	to its revenues, expenses, and other financial matters and may
91	91	require an independent organization to conduct such an audit;
92	92	(4) inspect an independent organization's facilities,
93	93	records, and accounts during reasonable hours and after reasonable
94	94	notice to the independent organization;
95	95	(5) assess administrative penalties against an
96	96	independent organization that violates this title or a rule or
97	97	order adopted by the commission and, at the request of the
98	98	commission, the attorney general may apply for a court order to
99	99	require an independent organization to comply with commission rules
100	100	and orders in the manner provided by Chapter 15; [and]
101	101	(6) resolve disputes between an affected person and an
102	102	independent organization and adopt procedures for the efficient
103	103	resolution of such disputes; and
104	104	(7) authorize an independent organization certified
105	105	under this section to assess a fee against each resource or load in
106	106	the retail electric competitive market in an amount reasonably
107	107	necessary to fund the compensation for provider of last resort
108	108	services to residential and small commercial customers as provided
109	109	by Section 39.106(g).
110	110	SECTION 3. This Act takes effect immediately if it receives
111	111	a vote of two-thirds of all the members elected to each house, as
112	112	provided by Section 39, Article III, Texas Constitution. If this
113	113	Act does not receive the vote necessary for immediate effect, this
114	114	Act takes effect September 1, 2009.