81R11067 TRH-F
By: Davis, Wendy S.B. No. 2128
A BILL TO BE ENTITLED
AN ACT
relating to fixed price contracts for residential retail electric
service.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 39, Utilities Code, is
amended by adding Section 39.113 to read as follows:
Sec. 39.113. FIXED PRICE CONTRACTS. (a) In this section,
"fixed price contract" means a residential retail electric service
contract for a term of six months or more in which the price for each
billing period is stated in the contract and does not change
throughout the term of the contract. The term does not include
month-to-month service.
(b) The term of a fixed price contract must be conspicuously
disclosed on the contract. The start and end dates of a fixed price
contract must be available to a customer who is a party to the
contract, on the request of the customer. The start and end dates
may be estimated if the retail electric provider is unable to
determine the dates. If a start date for a fixed price contract is
known, the end date may be estimated based on the transmission and
distribution utility's normal meter reading schedule for the
customer.
(c) In addition to any information required under
Subsection (b), a retail electric provider shall provide a
residential customer who has a fixed price contract with written
notification of the date the contract is scheduled to expire. The
notice must be sent to the customer's billing address by mail
postmarked not less than 60 days before the date the contract is
scheduled to expire. This subsection does not preclude a retail
electric provider from offering a new contract to a customer at any
time during the term of the customer's contract.
(d) A notice under Subsection (c) must:
(1) be provided as a separate document;
(2) include on the outside of the envelope the
statement "Contract Expiration Notice";
(3) if the customer has agreed to receive official
documents by electronic mail, state in the subject line of the
electronic mail "Contract Expiration Notice";
(4) include a description of the retail electric
provider's default service plan;
(5) include the terms of service for the retail
electric provider's default service plan, unless the terms of
service applicable to the default service plan also apply to the
customer's existing service under the fixed price contract;
(6) include a statement that if the customer takes no
action, service to the customer will continue according to the
default service plan; and
(7) include a statement that the default service plan
is provided on a month-to-month basis and may be canceled by the
customer at any time with no fee.
SECTION 2. The change in law made by this Act applies only
to a contract for retail electric service entered into or renewed on
or after the effective date of this Act. A contract for retail
electric service entered into or renewed before the effective date
of this Act is governed by the law as it existed immediately before
the effective date of this Act, and that law is continued in effect
for that purpose.
SECTION 3. This Act takes effect September 1, 2009.