Texas House Bill HB3370

Texas 2021 - 87th Regular

Caption

Relating to variable rate plans offered by retail electric providers.

Impact

The implementation of HB3370 could have a profound impact on the residential electricity market, particularly on how retail electric providers structure their pricing plans. The Public Utility Commission of Texas is tasked with adopting rules to enforce this new requirement, which is expected to take effect on September 1, 2021. The shift toward fixed pricing can stabilize costs for consumers and provides a predictable payment structure, which may be particularly beneficial in times of economic uncertainty when budgeting is crucial.

Summary

House Bill 3370 introduces significant changes to the regulation of variable rate plans offered by retail electric providers in Texas. The bill mandates that these providers must offer service only under fixed-price contracts, thus eliminating the option for variable rate agreements for residential customers. This change is aimed at protecting consumers from fluctuating electric rates that can lead to unpredictable and possibly higher bills. By requiring a more stable pricing structure, the bill seeks to enhance consumer confidence and budgeting for energy expenses.

Contention

Despite the advantages, the bill may face opposition from retail electric providers who may argue that restricting options for consumers could limit market competition. Some proponents of free market principles might contend that consumers should have the right to choose between fixed and variable rates based on their personal preferences and needs. Additionally, concerns may arise about how such regulations could impact business operations for electric providers, potentially leading to higher costs that could be passed down to consumers through other charges.