Texas 2021 - 87th Regular

Texas House Bill HB16 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 16
	1	+	By: Hernandez, et al. (Senate Sponsor - Hancock) H.B. No. 16
	2	+	(In the Senate - Received from the House March 31, 2021;
	3	+	April 8, 2021, read first time and referred to Committee on
	4	+	Business & Commerce; April 23, 2021, reported adversely, with
	5	+	favorable Committee Substitute by the following vote: Yeas 8,
	6	+	Nays 0; April 23, 2021, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 16 By: Hancock
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the regulation of certain retail electric products.
6	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	15		SECTION 1. Subchapter C, Chapter 39, Utilities Code, is
8	16		amended by adding Section 39.110 to read as follows:
9	17		Sec. 39.110. WHOLESALE INDEXED PRODUCTS PROHIBITED. (a)
10	18		In this section, "wholesale indexed product" means a retail
11	19		electric product in which the price a customer pays for electricity
12	20		includes a direct pass-through of real-time settlement point prices
13	21		determined by the independent organization certified under Section
14	22		39.151 for the ERCOT power region.
15	23		(b) An aggregator, a broker, or a retail electric provider
16	24		may not offer a wholesale indexed product to a residential or small
17	25		commercial customer.
18	26		(c) An aggregator, a broker, or a retail electric provider
19	27		may enroll a customer other than a residential and small commercial
20	28		customer in a wholesale indexed product only if the provider,
21	29		aggregator, or broker obtains before the customer's enrollment an
22	30		acknowledgment signed by the customer that the customer accepts the
23	31		potential price risks associated with a wholesale indexed product.
24	32		(d) An acknowledgment required by Subsection (c) must
25	33		include the following statement, in clear, boldfaced text:
26	34		"I understand that the volatility and fluctuation of
27	35		wholesale energy pricing may cause my energy bill to be
28	36		multiple times higher in a month in which wholesale
29	37		energy prices are high. I understand that I will be
30	38		responsible for charges caused by fluctuations in
31	39		wholesale energy prices."
32	40		(e) An acknowledgment required by Subsection (c) may be
33	41		included as an addendum to a contract.
34	42		(f) A retail electric provider that provides a wholesale
35	43		indexed product to a customer must keep on file the acknowledgment
36	44		required by Subsection (c) for each customer while the customer is
37	45		enrolled with the retail electric provider in the wholesale indexed
38	46		product.
39	47		SECTION 2. Section 39.112, Utilities Code, is amended to
40	48		read as follows:
41	49		Sec. 39.112. NOTICE OF EXPIRATION AND PRICE CHANGE. (a) In
42	50		this section, "fixed rate product" means a retail electric product
43	51		with a term of at least three months for which the price for each
44	52		billing period, including recurring charges, does not change
45	53		throughout the term of the contract, except that the price may vary
46	54		to reflect actual changes in transmission and distribution utility
47	55		charges, changes to ERCOT or Texas Regional Entity administrative
48	56		fees charged to loads, or changes to federal, state, or local laws
49	57		that result in new or modified fees or costs that are not within the
50	58		retail electric provider's control.
51	59		(b) A retail electric provider shall provide a residential
52	60		customer who has a fixed rate product with at least three [one]
53	61		written notices [notice] of the date the fixed rate product will
54	62		expire. The notices [notice] must be provided during the last third
55	63		of the contract period and in intervals that allow for, as
56	64		practicable, even distribution of the notices throughout the last
57	65		third of the contract period. The final notice for a contract with
58	66		a period of more than four months must be provided at least 30 days
59	67		before the date that the contract will expire. The final notice for
60	68		a contract with a period of less than four months must be provided
61	69		at least 15 days before the date that the contract will expire.
62	70		(c) The retail electric provider must provide each notice
63	71		required by Subsection (b) to the customer by mail at the customer's
64	72		billing address, unless the customer has opted to receive
65	73		communications electronically from the retail electric provider.
66	74		(d) If the retail electric provider has access to customer
67	75		contact information that allows the provider to send the customer a
68	76		text message or call the customer, and the customer has agreed to
69	77		receive notices by text message or call, the retail electric
70	78		provider may provide additional notice to the customer by text
71	79		message or call of the date the fixed rate product will expire.
72	80		Notice provided by text message or call does not constitute notice
73	81		under Subsection (b).
74	82		(e) A notice required by Subsection (b) must:
75	83		(1) for a notice provided by mail, [be sent to the
76	84		customer's billing address by mail at least 30, but not more than
77	85		60, days preceding the date the contract will expire;
78	86		[(2) be sent to the customer's e-mail address, if
79	87		available to the provider and if the customer has agreed to receive
80	88		notices electronically, at least 30, but not more than 60, days
81	89		preceding the date the contract will expire;
82	90		[(3)] include in a manner visible from [on] the
83	91		outside of the envelope in which the notice is sent, a statement
84	92		that reads: "Contract Expiration Notice. See Enclosed.";
85	93		(2) [(4)] if included with a customer's bill, be
86	94		printed on a separate page or included as a separate document; [and]
87	95		(3) [(5)] include a description of any fees or charges
88	96		associated with the early termination of the customer's fixed rate
89	97		product; and
90	98		(4) describe any renewal offers the retail electric
91	99		provider chooses to make available to the customer and identify
92	100		methods by which the customer may obtain the contract documents for
93	101		each of the offered products.
94	102		(f) The final notice provided under Subsection (b) must
95	103		include the pricing terms for the default renewal product required
96	104		by Subsection (h).
97	105		(g) [(c)] A retail electric provider shall include on each
98	106		billing statement, in boldfaced and underlined text, the end date
99	107		of the fixed rate product.
100	108		(h) Except as provided by Subsection (j), if a customer does
101	109		not select another retail electric product before the expiration of
102	110		the customer's contract term with a retail electric provider, the
103	111		provider shall automatically serve the customer through a default
104	112		renewal product that the customer may cancel at any time without a
105	113		fee. The default renewal product must be:
106	114		(1) a month-to-month product in which the price the
107	115		customer pays for electricity may vary between billing cycles; and
108	116		(2) based on clear terms designed to be easily
109	117		understood by the average customer.
110	118		(i) A retail electric provider shall include in each
111	119		contract for service the terms of the default renewal product that
112	120		the customer will automatically be enrolled in under Subsection (h)
113	121		if the customer does not select another retail electric product
114	122		before the expiration of the contract term.
115	123		(j) If a retail electric provider does not provide notice of
116	124		the expiration of a customer's contract with the provider in
117	125		accordance with this section and the customer does not select
118	126		another retail electric product before the expiration of the
119	127		customer's contract term with the provider, the retail electric
120	128		provider must continue to serve the customer under the pricing
121	129		terms of the fixed rate product contract until:
122	130		(1) the provider provides notice of the expiration of
123	131		the contract in accordance with this section; or
124	132		(2) the customer selects another retail electric
125	133		product.
126	134		(k) [(d)] No provision in this section shall be construed to
127	135		prohibit the commission from adopting rules that would provide a
128	136		greater degree of customer protection.
129	137		SECTION 3. The changes in law made by this Act apply only to
130	138		an enrollment or re-enrollment of a customer in a retail electric
131	139		product that is executed on or after the effective date of this Act.
132	140		An enrollment or re-enrollment of a customer in a retail electric
133	141		product that is executed before the effective date of this Act is
134	142		governed by the law as it existed immediately before the effective
135	143		date of this Act, and that law is continued in effect for that
136	144		purpose.
137	145		SECTION 4. This Act takes effect September 1, 2021.
138		-	______________________________ ______________________________
139		-	President of the Senate Speaker of the House
140		-	I certify that H.B. No. 16 was passed by the House on March
141		-	31, 2021, by the following vote: Yeas 116, Nays 31, 1 present, not
142		-	voting; and that the House concurred in Senate amendments to H.B.
143		-	No. 16 on May 12, 2021, by the following vote: Yeas 123, Nays 24, 1
144		-	present, not voting.
145		-	______________________________
146		-	Chief Clerk of the House
147		-	I certify that H.B. No. 16 was passed by the Senate, with
148		-	amendments, on April 29, 2021, by the following vote: Yeas 29,
149		-	Nays 2.
150		-	______________________________
151		-	Secretary of the Senate
152		-	APPROVED: __________________
153		-	Date
154		-	__________________
155		-	Governor
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