81R11056 TRH-D
By: Davis, Wendy S.B. No. 2130
A BILL TO BE ENTITLED
AN ACT
relating to providers 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 (e), and adding Subsections
(b-1), (b-2), (b-3), (c-1), (c-2), (c-3), (e-1), (e-2), (e-3),
(e-4), (e-5), (e-6), and (h) to read as follows:
(b) A provider of last resort shall offer a standard retail
service package for each class of customers designated by the
commission. A standard retail service package is limited to:
(1) basic electric service;
(2) customer access to a call center for inquiries
regarding the service;
(3) standard retail billing performed by the provider
or an agent; and
(4) benefits for low-income customers provided under
Section 39.903 [at a fixed, nondiscountable rate approved by the
commission].
(b-1) A provider of last resort shall provide billing and
collection services for a retail electric provider that has
defaulted on payments to the servicer of a transition bond or
payments to a transmission and distribution utility.
(b-2) A provider of last resort shall include in each
billing statement sent to a residential customer:
(1) a notice that informs the customer that other
competitive products or services may be available from the provider
or from another competitive retail electric provider;
(2) contact information for the provider; and
(3) a message from the commission that:
(A) is in the form of a bill insert with "A
Message from the Public Utility Commission" as a header;
(B) addresses the reason the customer has been
transitioned to a provider of last resort;
(C) explains the continuity of service purpose
for the transition and the temporary nature of the service as
emergency service; and
(D) directs the customer to information
available on the www.powertochoose.org Internet website or at a
toll-free number established for that purpose.
(b-3) A provider of last resort shall:
(1) charge the provider's customers a market-based,
month-to-month rate identical to the rate charged to the provider's
new and existing customers in the same customer class; and
(2) post the provider's standard retail service
package on the commission's Internet website or provide a
description of the service and rate plan to the commission and
ERCOT.
(c) A provider of last resort shall provide the standard
retail service package to:
(1) any requesting customer in the territory for which
it is the provider of last resort; and
(2) each customer assigned to the provider of last
resort during a mass transition of customers.
(c-1) A provider of last resort may charge customers
assigned to the provider in a mass transition of customers a rate
that is lower than the emergency rate as determined on the date of
the transition, if the lower rate is applied to all transitioned
customers. A provider of last resort may market to customers
assigned to the provider pursuant to a mass transition on a
nondiscriminatory basis the same competitive products the provider
offers to the provider's similarly situated nontransitioned
customers. Marketing made to a transitioned customer under this
subsection must inform the customer that the customer has the right
to switch the customer's service to a different retail electric
provider, or accept from the provider of last resort a competitive
product other than the standard retail service package, if the
provider offers such a competitive product. A customer may agree to
a long-term contract for nonemergency service with the provider of
last resort. A customer who has enrolled in a nonemergency product
or service with a provider of last resort is not subsequently
considered a transitioned customer.
(c-2) When a customer is transitioned to emergency service,
ERCOT, the provider of last resort, and the transitioning retail
electric provider shall notify the customer. The notice must be
given not later than the second day after the date ERCOT and the
transitioning retail electric provider become aware that the
customer will be transitioned and customer contact information is
available. If the customer cannot be reached during that time,
notice must be given as soon as practicable. ERCOT shall notify
transitioned customers by all reasonable means, including a
postcard containing the official commission seal with language and
format approved by the commission, an automated phone call, or an
automated electronic mail. ERCOT shall study the effectiveness of
each method of notification and report the results to the
commission. The notice must include:
(1) the reason for the transition;
(2) a telephone number for the transitioning retail
electric provider;
(3) a statement informing the customer that the
customer will receive a separate notice from the provider of last
resort that will disclose the date the provider will begin
providing service to the customer; and
(4) if applicable:
(A) the customer's deposit plus accrued
interest; or
(B) a statement that the deposit will be returned
within seven days of the transition.
(c-3) If a customer does not elect to change service from
the emergency service of a provider of last resort to a competitive
product or service, the provider may switch the customer's service
to the provider's regularly offered product. The provider shall
send the customer a notice that:
(1) describes the rate, terms, and conditions of the
service to which the customer will be switched;
(2) informs the customer that other competitive
products or services may be available from the provider or from a
retail electric provider affiliated with the provider;
(3) specifies the deposit requirements of the service
to which the customer will be switched;
(4) states that other providers may also require a
deposit; and
(5) states where the customer may find additional
information about the offerings of other providers.
(e) Not later than July 10 of each even-numbered year, each
retail electric provider shall provide to the commission
information necessary to establish the retail electric provider's
eligibility to serve as a provider of last resort for the biennium
beginning January 1 of the following year. A determination
regarding eligibility is not considered confidential information.
Information supplied under this subsection must include, for each
service area served by the retail electric provider:
(1) information on the classes of customers served by
the retail electric provider;
(2) the retail electric provider's retail sales in
megawatt hours for each transitional customer class for the
12-month period ending March 31 of the current year according to
information provided by ERCOT;
(3) the retail electric provider's retail sales in
megawatt hours for each customer class for the 12-month period
ending March 31 of the current year according to information
provided by ERCOT; and
(4) information regarding the retail electric
provider's technical and financial ability to provide service to
additional customers in the event of a mass transition of customers
to the retail electric provider [The commission shall determine the
procedures and criteria, which may include the solicitation of
bids, for designating a provider or providers of last resort. The
commission may redesignate the provider of last resort according to
a schedule it considers appropriate].
(e-1) Based on the information provided to the commission
under Subsection (e), the commission shall designate each retail
electric provider that is eligible to be a provider of last resort,
and may require any retail electric provider that is determined to
be eligible to serve as a provider of last resort in an area of this
state where customer choice is in effect. The commission may not
require a retail electric provider to serve as a provider of last
resort in the service area of a municipally owned utility or
electric cooperative unless the electric cooperative has delegated
its emergency service area authority to the commission. On a
request by an eligible retail electric provider and a showing that
the retail electric provider will not be able to maintain its
financial integrity if it is required to serve customers under this
section, the commission may relieve the retail electric provider of
its obligations under this section.
(e-2) A retail electric provider may volunteer to be a
provider of last resort by submitting a request to the commission
with the information required by Subsection (e). A request under
this subsection must:
(1) be submitted to the commission not earlier than
July 10, and not later than July 31 of each even-numbered year;
(2) include the name of the retail electric provider;
(3) include the name and contact information of a
person to serve as the retail electric provider's point of contact;
(4) state which customer classes the retail electric
provider is willing to serve within each emergency service area;
(5) state, by customer class, the number of customers
the retail electric provider is willing to serve during a mass
transition;
(6) state the maximum load that the retail electric
provider is willing to serve for customers who at the time of the
transition to emergency service had a peak demand in the previous
12-month period of at least one megawatt; and
(7) include information regarding the retail electric
provider's technical and financial condition sufficient to
demonstrate that the retail electric provider is capable of serving
a mass transition of customers without experiencing technical or
financial distress.
(e-3) A retail electric provider is eligible to be a
voluntary provider of last resort if it meets the requirements of
Subsections (e) and (e-2). The commission shall publish a list of
all eligible voluntary providers of last resort and post the names
on the commission's Internet website. A voluntary provider of last
resort may file a request with the commission at any time to be
removed from the list or to modify the number of customers or load
the provider is willing to serve.
(e-4) If a voluntary provider of last resort requests under
Subsection (e-3) to increase the number of customers or load the
provider is willing to serve, the provider shall provide
documentation to demonstrate that it is capable of serving the
additional customers or load. If the commission staff determines
that the provider is not capable of serving the additional
customers or load, the provider, not later than the fifth business
day after the date the determination is made, may file additional
documentation regarding the provider's technical and financial
ability to serve the additional customers or load. The commission
staff shall reassess the provider's application and notify the
provider of the status of the provider's request not later than the
10th business day after the date the additional documentation is
received. A review by the commission staff is not a contested case.
The provider may appeal the staff's decision by requesting a
contested case proceeding.
(e-5) If a voluntary provider of last resort requests under
Subsection (e-3) to decrease the number of customers or load it is
willing to serve, the commission shall grant the provider's request
not later than the fifth business day after the date the request is
submitted. The provider shall continue to serve customers acquired
due to any mass transition occurring before that date.
(e-6) If the commission staff determines that a retail
electric provider is not eligible to be a voluntary provider of last
resort, the retail electric provider, not later than the fifth
business day after the date the determination is made, may file
additional documentation regarding the retail electric provider's
technical and financial ability to be a provider of last resort.
The commission staff shall reassess the retail electric provider's
application and notify the retail electric provider of any change
in eligibility status not later than the 10th business day after the
date the additional documentation is received. A review by
commission staff is not a contested case. The provider may appeal
the staff's decision by requesting a contested case proceeding.
(h) When transferring customers to a provider of last
resort, ERCOT shall first transfer customers to retail electric
providers that have volunteered to serve additional customers or
load under Subsection (e-2), but may not transfer a number of
customers or amount of load that exceeds the number or amount each
provider has offered to serve.
SECTION 2. Sections 39.106(f) and (g), Utilities Code, are
repealed.
SECTION 3. This Act takes effect September 1, 2009.