81R11392 TJS-F
By: Ellis S.B. No. 1865
A BILL TO BE ENTITLED
AN ACT
relating to the provider of last resort.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.106, Utilities Code, is amended by
amending Subsections (b), (c), and (g) and adding Subsections (h)
and (i) to read as follows:
(b) A provider of last resort shall offer a [standard]
retail service package approved by the commission for each class of
customers designated by the commission. Except as provided by
Subsections (g) and (h), the commission shall ensure that:
(1) the price of service from a provider of last resort
reflects the market price of providing short-term service; and
(2) for residential and small commercial customers,
the computation of price for service from a provider of last resort
does not include a multiplier of more than 120 percent of the
marginal clearing price of energy in the power region [at a fixed,
nondiscountable rate approved by the commission].
(c) In the territory for which it is the provider of last
resort, a [A] provider of last resort shall provide, without
interruption, the [standard] retail service package approved by the
commission at the price prescribed by Subsection (b) or (g) to a
[any requesting] customer of a retail electric provider declared to
be in default under commission rules. If a customer receiving
service from the provider of last resort under this subsection does
not switch to another electric service plan before the 60th day
after the date on which the default is declared, the provider may
switch the customer to a month-to-month service plan that is at
least as favorable to the customer as a month-to-month service plan
the provider offers to new or renewing customers with similar
electric service demands. The plan to which the customer is
switched must comply with the commission's consumer protection
rules. After a switch is completed under this subsection, the
customer is not considered to be a customer of a [in the territory
for which it is the] provider of last resort.
(g) This subsection applies only if the independent
organization certified under Section 39.151 imposes a fee under
Section 39.151(d-1)(7). The commission shall establish a mechanism
by which a residential or small commercial customer of a provider of
last resort is charged by the provider of last resort a price for a
commission-approved retail service package that is not higher than
the average price of residential plans with monthly terms offered
on the Internet website at http://www.powertochoose.com on the date
the customer begins service with the provider of last resort. The
commission by rule shall provide that a provider of last resort may
not require a residential or small commercial customer receiving
provider of last resort services to pay a deposit as a condition of
receiving those services at the price prescribed by this
subsection. The independent organization shall use the proceeds of
the fee imposed under Section 39.151(d-1)(7) to compensate a
provider of last resort for the difference between the price for the
retail package approved by the commission for provider of last
resort services provided to residential and small commercial
customers and the price computed in accordance with commission
rules that would reasonably compensate a provider of last resort
under the then current market conditions, considering the
short-term and volatile nature of provider of last resort services.
The independent organization shall also use the proceeds of the fee
imposed under Section 39.151(d-1)(7) to compensate a provider of
last resort for bad debt related to providing provider of last
resort services [In the event that a retail electric provider fails
to serve any or all of its customers, the provider of last resort
shall offer that customer the standard retail service package for
that customer class with no interruption of service to any
customer].
(h) Notwithstanding Subsection (g), in determining the
price that would reasonably compensate a provider of last resort
under Subsection (g), the commission, until December 31, 2010,
shall use the price for provider of last resort services that was in
effect January 1, 2009.
(i) For purposes of this section, "small commercial
customer" means a commercial customer that has a peak demand of less
than 50 kilowatt hours during any 12-month period.
SECTION 2. Section 39.151(d-1), Utilities Code, is amended
to read as follows:
(d-1) The commission may:
(1) require an independent organization to provide
reports and information relating to the independent organization's
performance of the functions prescribed by this section and
relating to the organization's revenues, expenses, and other
financial matters;
(2) prescribe a system of accounts for an independent
organization;
(3) conduct audits of an independent organization's
performance of the functions prescribed by this section or relating
to its revenues, expenses, and other financial matters and may
require an independent organization to conduct such an audit;
(4) inspect an independent organization's facilities,
records, and accounts during reasonable hours and after reasonable
notice to the independent organization;
(5) assess administrative penalties against an
independent organization that violates this title or a rule or
order adopted by the commission and, at the request of the
commission, the attorney general may apply for a court order to
require an independent organization to comply with commission rules
and orders in the manner provided by Chapter 15; [and]
(6) resolve disputes between an affected person and an
independent organization and adopt procedures for the efficient
resolution of such disputes; and
(7) authorize an independent organization certified
under this section to assess a fee against each resource or load in
the retail electric competitive market in an amount reasonably
necessary to fund the compensation for provider of last resort
services to residential and small commercial customers as provided
by Section 39.106(g).
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.