Texas 2009 - 81st Regular

Texas Senate Bill SB2130 Compare Versions

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

Old	New	Differences
1	1	81R11056 TRH-D
2	2	By: Davis, Wendy S.B. No. 2130
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to providers 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 (e), and adding Subsections
11	11	(b-1), (b-2), (b-3), (c-1), (c-2), (c-3), (e-1), (e-2), (e-3),
12	12	(e-4), (e-5), (e-6), and (h) to read as follows:
13	13	(b) A provider of last resort shall offer a standard retail
14	14	service package for each class of customers designated by the
15	15	commission. A standard retail service package is limited to:
16	16	(1) basic electric service;
17	17	(2) customer access to a call center for inquiries
18	18	regarding the service;
19	19	(3) standard retail billing performed by the provider
20	20	or an agent; and
21	21	(4) benefits for low-income customers provided under
22	22	Section 39.903 [at a fixed, nondiscountable rate approved by the
23	23	commission].
24	24	(b-1) A provider of last resort shall provide billing and
25	25	collection services for a retail electric provider that has
26	26	defaulted on payments to the servicer of a transition bond or
27	27	payments to a transmission and distribution utility.
28	28	(b-2) A provider of last resort shall include in each
29	29	billing statement sent to a residential customer:
30	30	(1) a notice that informs the customer that other
31	31	competitive products or services may be available from the provider
32	32	or from another competitive retail electric provider;
33	33	(2) contact information for the provider; and
34	34	(3) a message from the commission that:
35	35	(A) is in the form of a bill insert with "A
36	36	Message from the Public Utility Commission" as a header;
37	37	(B) addresses the reason the customer has been
38	38	transitioned to a provider of last resort;
39	39	(C) explains the continuity of service purpose
40	40	for the transition and the temporary nature of the service as
41	41	emergency service; and
42	42	(D) directs the customer to information
43	43	available on the www.powertochoose.org Internet website or at a
44	44	toll-free number established for that purpose.
45	45	(b-3) A provider of last resort shall:
46	46	(1) charge the provider's customers a market-based,
47	47	month-to-month rate identical to the rate charged to the provider's
48	48	new and existing customers in the same customer class; and
49	49	(2) post the provider's standard retail service
50	50	package on the commission's Internet website or provide a
51	51	description of the service and rate plan to the commission and
52	52	ERCOT.
53	53	(c) A provider of last resort shall provide the standard
54	54	retail service package to:
55	55	(1) any requesting customer in the territory for which
56	56	it is the provider of last resort; and
57	57	(2) each customer assigned to the provider of last
58	58	resort during a mass transition of customers.
59	59	(c-1) A provider of last resort may charge customers
60	60	assigned to the provider in a mass transition of customers a rate
61	61	that is lower than the emergency rate as determined on the date of
62	62	the transition, if the lower rate is applied to all transitioned
63	63	customers. A provider of last resort may market to customers
64	64	assigned to the provider pursuant to a mass transition on a
65	65	nondiscriminatory basis the same competitive products the provider
66	66	offers to the provider's similarly situated nontransitioned
67	67	customers. Marketing made to a transitioned customer under this
68	68	subsection must inform the customer that the customer has the right
69	69	to switch the customer's service to a different retail electric
70	70	provider, or accept from the provider of last resort a competitive
71	71	product other than the standard retail service package, if the
72	72	provider offers such a competitive product. A customer may agree to
73	73	a long-term contract for nonemergency service with the provider of
74	74	last resort. A customer who has enrolled in a nonemergency product
75	75	or service with a provider of last resort is not subsequently
76	76	considered a transitioned customer.
77	77	(c-2) When a customer is transitioned to emergency service,
78	78	ERCOT, the provider of last resort, and the transitioning retail
79	79	electric provider shall notify the customer. The notice must be
80	80	given not later than the second day after the date ERCOT and the
81	81	transitioning retail electric provider become aware that the
82	82	customer will be transitioned and customer contact information is
83	83	available. If the customer cannot be reached during that time,
84	84	notice must be given as soon as practicable. ERCOT shall notify
85	85	transitioned customers by all reasonable means, including a
86	86	postcard containing the official commission seal with language and
87	87	format approved by the commission, an automated phone call, or an
88	88	automated electronic mail. ERCOT shall study the effectiveness of
89	89	each method of notification and report the results to the
90	90	commission. The notice must include:
91	91	(1) the reason for the transition;
92	92	(2) a telephone number for the transitioning retail
93	93	electric provider;
94	94	(3) a statement informing the customer that the
95	95	customer will receive a separate notice from the provider of last
96	96	resort that will disclose the date the provider will begin
97	97	providing service to the customer; and
98	98	(4) if applicable:
99	99	(A) the customer's deposit plus accrued
100	100	interest; or
101	101	(B) a statement that the deposit will be returned
102	102	within seven days of the transition.
103	103	(c-3) If a customer does not elect to change service from
104	104	the emergency service of a provider of last resort to a competitive
105	105	product or service, the provider may switch the customer's service
106	106	to the provider's regularly offered product. The provider shall
107	107	send the customer a notice that:
108	108	(1) describes the rate, terms, and conditions of the
109	109	service to which the customer will be switched;
110	110	(2) informs the customer that other competitive
111	111	products or services may be available from the provider or from a
112	112	retail electric provider affiliated with the provider;
113	113	(3) specifies the deposit requirements of the service
114	114	to which the customer will be switched;
115	115	(4) states that other providers may also require a
116	116	deposit; and
117	117	(5) states where the customer may find additional
118	118	information about the offerings of other providers.
119	119	(e) Not later than July 10 of each even-numbered year, each
120	120	retail electric provider shall provide to the commission
121	121	information necessary to establish the retail electric provider's
122	122	eligibility to serve as a provider of last resort for the biennium
123	123	beginning January 1 of the following year. A determination
124	124	regarding eligibility is not considered confidential information.
125	125	Information supplied under this subsection must include, for each
126	126	service area served by the retail electric provider:
127	127	(1) information on the classes of customers served by
128	128	the retail electric provider;
129	129	(2) the retail electric provider's retail sales in
130	130	megawatt hours for each transitional customer class for the
131	131	12-month period ending March 31 of the current year according to
132	132	information provided by ERCOT;
133	133	(3) the retail electric provider's retail sales in
134	134	megawatt hours for each customer class for the 12-month period
135	135	ending March 31 of the current year according to information
136	136	provided by ERCOT; and
137	137	(4) information regarding the retail electric
138	138	provider's technical and financial ability to provide service to
139	139	additional customers in the event of a mass transition of customers
140	140	to the retail electric provider [The commission shall determine the
141	141	procedures and criteria, which may include the solicitation of
142	142	bids, for designating a provider or providers of last resort. The
143	143	commission may redesignate the provider of last resort according to
144	144	a schedule it considers appropriate].
145	145	(e-1) Based on the information provided to the commission
146	146	under Subsection (e), the commission shall designate each retail
147	147	electric provider that is eligible to be a provider of last resort,
148	148	and may require any retail electric provider that is determined to
149	149	be eligible to serve as a provider of last resort in an area of this
150	150	state where customer choice is in effect. The commission may not
151	151	require a retail electric provider to serve as a provider of last
152	152	resort in the service area of a municipally owned utility or
153	153	electric cooperative unless the electric cooperative has delegated
154	154	its emergency service area authority to the commission. On a
155	155	request by an eligible retail electric provider and a showing that
156	156	the retail electric provider will not be able to maintain its
157	157	financial integrity if it is required to serve customers under this
158	158	section, the commission may relieve the retail electric provider of
159	159	its obligations under this section.
160	160	(e-2) A retail electric provider may volunteer to be a
161	161	provider of last resort by submitting a request to the commission
162	162	with the information required by Subsection (e). A request under
163	163	this subsection must:
164	164	(1) be submitted to the commission not earlier than
165	165	July 10, and not later than July 31 of each even-numbered year;
166	166	(2) include the name of the retail electric provider;
167	167	(3) include the name and contact information of a
168	168	person to serve as the retail electric provider's point of contact;
169	169	(4) state which customer classes the retail electric
170	170	provider is willing to serve within each emergency service area;
171	171	(5) state, by customer class, the number of customers
172	172	the retail electric provider is willing to serve during a mass
173	173	transition;
174	174	(6) state the maximum load that the retail electric
175	175	provider is willing to serve for customers who at the time of the
176	176	transition to emergency service had a peak demand in the previous
177	177	12-month period of at least one megawatt; and
178	178	(7) include information regarding the retail electric
179	179	provider's technical and financial condition sufficient to
180	180	demonstrate that the retail electric provider is capable of serving
181	181	a mass transition of customers without experiencing technical or
182	182	financial distress.
183	183	(e-3) A retail electric provider is eligible to be a
184	184	voluntary provider of last resort if it meets the requirements of
185	185	Subsections (e) and (e-2). The commission shall publish a list of
186	186	all eligible voluntary providers of last resort and post the names
187	187	on the commission's Internet website. A voluntary provider of last
188	188	resort may file a request with the commission at any time to be
189	189	removed from the list or to modify the number of customers or load
190	190	the provider is willing to serve.
191	191	(e-4) If a voluntary provider of last resort requests under
192	192	Subsection (e-3) to increase the number of customers or load the
193	193	provider is willing to serve, the provider shall provide
194	194	documentation to demonstrate that it is capable of serving the
195	195	additional customers or load. If the commission staff determines
196	196	that the provider is not capable of serving the additional
197	197	customers or load, the provider, not later than the fifth business
198	198	day after the date the determination is made, may file additional
199	199	documentation regarding the provider's technical and financial
200	200	ability to serve the additional customers or load. The commission
201	201	staff shall reassess the provider's application and notify the
202	202	provider of the status of the provider's request not later than the
203	203	10th business day after the date the additional documentation is
204	204	received. A review by the commission staff is not a contested case.
205	205	The provider may appeal the staff's decision by requesting a
206	206	contested case proceeding.
207	207	(e-5) If a voluntary provider of last resort requests under
208	208	Subsection (e-3) to decrease the number of customers or load it is
209	209	willing to serve, the commission shall grant the provider's request
210	210	not later than the fifth business day after the date the request is
211	211	submitted. The provider shall continue to serve customers acquired
212	212	due to any mass transition occurring before that date.
213	213	(e-6) If the commission staff determines that a retail
214	214	electric provider is not eligible to be a voluntary provider of last
215	215	resort, the retail electric provider, not later than the fifth
216	216	business day after the date the determination is made, may file
217	217	additional documentation regarding the retail electric provider's
218	218	technical and financial ability to be a provider of last resort.
219	219	The commission staff shall reassess the retail electric provider's
220	220	application and notify the retail electric provider of any change
221	221	in eligibility status not later than the 10th business day after the
222	222	date the additional documentation is received. A review by
223	223	commission staff is not a contested case. The provider may appeal
224	224	the staff's decision by requesting a contested case proceeding.
225	225	(h) When transferring customers to a provider of last
226	226	resort, ERCOT shall first transfer customers to retail electric
227	227	providers that have volunteered to serve additional customers or
228	228	load under Subsection (e-2), but may not transfer a number of
229	229	customers or amount of load that exceeds the number or amount each
230	230	provider has offered to serve.
231	231	SECTION 2. Sections 39.106(f) and (g), Utilities Code, are
232	232	repealed.
233	233	SECTION 3. This Act takes effect September 1, 2009.