By: Schwertner, Menéndez S.B. No. 2194
(In the Senate - Filed April 12, 2021; April 12, 2021, read
first time and referred to Committee on Jurisprudence;
April 19, 2021, reported favorably by the following vote: Yeas 5,
Nays 0; April 19, 2021, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of certain retail electric products.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 39, Utilities Code, is
amended by adding Section 39.110 to read as follows:
Sec. 39.110. WHOLESALE INDEXED PRODUCTS PROHIBITED. (a)
In this section, "wholesale indexed product" means a retail
electric product in which the price a customer pays for electricity
includes a direct pass-through of real-time settlement point prices
determined by the independent organization certified under Section
39.151 for the ERCOT power region.
(b) A retail electric provider may not offer a wholesale
indexed product to a residential or small commercial customer.
(c) A retail electric provider may enroll a customer other
than a residential and small commercial customer in a wholesale
indexed product if the provider obtains before the customer's
enrollment the customer's written and signed acknowledgment that
the customer accepts the potential price risks associated with a
wholesale indexed product.
(d) An acknowledgment described by Subsection (c) must
include the following statements, in clear, boldfaced text,
accompanied by the signature of the customer:
(1) "I understand the volatility and fluctuation of
wholesale energy pricing. I understand that I will be responsible
for the fluctuations in wholesale energy prices and that my energy
bill can be multiple times higher in a month with high wholesale
energy prices.";
(2) "I understand that the maximum wholesale energy
rate in the wholesale energy market is much higher than the average
wholesale energy rate and that energy prices can remain at the
maximum wholesale energy rate for many hours."; and
(3) "I acknowledge that management of energy use
during periods of high energy prices times is critical to
maintaining financial solvency.".
(e) A retail electric provider must keep on file an
acknowledgment described by Subsection (c) for each customer while
the customer is enrolled with the provider in a wholesale indexed
product.
SECTION 2. Section 39.112, Utilities Code, is amended to
read as follows:
Sec. 39.112. NOTICE OF EXPIRATION AND PRICE CHANGE. (a) In
this section, "fixed rate product" means a retail electric product
with a term of at least three months for which the price for each
billing period, including recurring charges, does not change
throughout the term of the contract, except that the price may vary
to reflect actual changes in transmission and distribution utility
charges, changes to ERCOT or Texas Regional Entity administrative
fees charged to loads, or changes to federal, state, or local laws
that result in new or modified fees or costs that are not within the
retail electric provider's control.
(b) A retail electric provider shall provide a residential
customer who has a fixed rate product with at least three [one]
written notices [notice] of the date the fixed rate product will
expire. The notices [notice] must be provided:
(1) not less than 90 days and not more than 119 days
before the date the contract will expire, for the first notice;
(2) not less than 60 days and not more than 89 days
before the date that the contract will expire, for the second
notice; and
(3) not less than 30 days and not more than 59 days
before the date that the contract will expire, for the third notice.
(c) Each notice under Subsection (b) must be provided to the
customer:
(1) by mail at the customer's billing address;
(2) by e-mail, if the customer's e-mail address is
available to the provider and if the customer has agreed to receive
notices by e-mail; and
(3) by text message, if the customer's text messaging
contact information is available to the provider and if the
customer has agreed to receive notices by text message.
(d) A notice provided under Subsection (b) must:
(1) [be sent to the customer's billing address by mail
at least 30, but not more than 60, days preceding the date the
contract will expire;
[(2) be sent to the customer's e-mail address, if
available to the provider and if the customer has agreed to receive
notices electronically, at least 30, but not more than 60, days
preceding the date the contract will expire;
[(3)] for a notice provided by mail, include in a manner
visible from [on] the outside of the envelope in which the notice is
sent, a statement that reads: "Contract Expiration Notice. See
Enclosed.";
(2) [(4)] if included with a customer's bill, be
printed on a separate page or included as a separate document; [and]
(3) [(5)] include a description of any fees or charges
associated with the early termination of the customer's fixed rate
product;
(4) describe any renewal offers the retail electric
provider chooses to make available to the customer and identify
methods by which the customer may obtain the contract documents for
each of those products; and
(5) include the pricing terms for the default renewal
product required under Subsection (f).
(e) [(c)] A retail electric provider shall include on each
billing statement, in boldfaced and underlined text, the end date
of the fixed rate product.
(f) Except as provided by Subsection (h), if a customer does
not select another retail electric product before the expiration of
the customer's contract term with a retail electric provider, the
provider shall automatically serve the customer through a default
renewal product. The default renewal product may be:
(1) a fixed rate product; or
(2) a month-to-month product in which the price the
customer pays for electricity may vary between billing cycles.
(g) A default renewal product that is a month-to-month
product must be based on clear and easily understood terms
described in the customer's most recent contract with the retail
electric provider.
(h) If a retail electric provider does not provide notice of
the expiration of a customer's contract with the provider in
accordance with this section and the customer does not select
another retail electric product before the expiration of the
customer's contract term with the provider, the customer's fixed
rate product remains in effect until:
(1) the provider provides notice of the expiration of
the contract in accordance with this section and enrolls the
customer in a default renewal product; or
(2) the customer selects another retail electric
product.
(i) [(d)] No provision in this section shall be construed to
prohibit the commission from adopting rules that would provide a
greater degree of customer protection.
SECTION 3. The changes in law made by this Act apply only to
an enrollment or re-enrollment of a customer in a retail electric
product that is executed on or after the effective date of this Act.
An enrollment or re-enrollment of a customer in a retail electric
product that is executed 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 4. This Act takes effect September 1, 2021.
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