TX
Texas Senate Bill SB2194

Texas 2021 - 87th Regular

Texas Senate Bill SB2194 Compare Versions

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1-By: Schwertner, et al. S.B. No. 2194
1+By: Schwertner, Menéndez S.B. No. 2194
2+ (In the Senate - Filed April 12, 2021; April 12, 2021, read
3+ first time and referred to Committee on Jurisprudence;
4+ April 19, 2021, reported favorably by the following vote: Yeas 5,
5+ Nays 0; April 19, 2021, sent to printer.)
6+Click here to see the committee vote
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49 A BILL TO BE ENTITLED
510 AN ACT
6- relating to the regulation of retail electric providers.
11+ relating to the regulation of certain retail electric products.
712 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
813 SECTION 1. Subchapter C, Chapter 39, Utilities Code, is
914 amended by adding Section 39.110 to read as follows:
1015 Sec. 39.110. WHOLESALE INDEXED PRODUCTS PROHIBITED. (a)
1116 In this section, "wholesale indexed product" means a retail
1217 electric product in which the price a customer pays for electricity
1318 includes a direct pass-through of real-time settlement point prices
1419 determined by the independent organization certified under Section
1520 39.151 for the ERCOT power region.
16- (b) An aggregator, a broker, or a retail electric provider
17- may not offer a wholesale indexed product to a residential or small
18- commercial customer.
19- (c) An aggregator, a broker, or a retail electric provider
20- may enroll a customer other than a residential and small commercial
21- customer in a wholesale indexed product only if the provider,
22- aggregator, or broker obtains before the customer's enrollment an
23- acknowledgment signed by the customer that the customer accepts the
24- potential price risks associated with a wholesale indexed product.
25- (d) An acknowledgment required by Subsection (c) must
26- include the following statement, in clear, boldfaced text:
27- "I understand that the volatility and fluctuation of
28- wholesale energy pricing may cause my energy bill to be
29- multiple times higher in a month in which wholesale
30- energy prices are high. I understand that I will be
31- responsible for charges caused by fluctuations in
32- wholesale energy prices."
33- (e) An acknowledgment required by Subsection (c) may be
34- included as an addendum to a contract.
35- (f) A retail electric provider that provides a wholesale
36- indexed product to a customer must keep on file the acknowledgment
37- required by Subsection (c) for each customer while the customer is
38- enrolled with the retail electric provider in the wholesale indexed
21+ (b) A retail electric provider may not offer a wholesale
22+ indexed product to a residential or small commercial customer.
23+ (c) A retail electric provider may enroll a customer other
24+ than a residential and small commercial customer in a wholesale
25+ indexed product if the provider obtains before the customer's
26+ enrollment the customer's written and signed acknowledgment that
27+ the customer accepts the potential price risks associated with a
28+ wholesale indexed product.
29+ (d) An acknowledgment described by Subsection (c) must
30+ include the following statements, in clear, boldfaced text,
31+ accompanied by the signature of the customer:
32+ (1) "I understand the volatility and fluctuation of
33+ wholesale energy pricing. I understand that I will be responsible
34+ for the fluctuations in wholesale energy prices and that my energy
35+ bill can be multiple times higher in a month with high wholesale
36+ energy prices.";
37+ (2) "I understand that the maximum wholesale energy
38+ rate in the wholesale energy market is much higher than the average
39+ wholesale energy rate and that energy prices can remain at the
40+ maximum wholesale energy rate for many hours."; and
41+ (3) "I acknowledge that management of energy use
42+ during periods of high energy prices times is critical to
43+ maintaining financial solvency.".
44+ (e) A retail electric provider must keep on file an
45+ acknowledgment described by Subsection (c) for each customer while
46+ the customer is enrolled with the provider in a wholesale indexed
3947 product.
4048 SECTION 2. Section 39.112, Utilities Code, is amended to
4149 read as follows:
4250 Sec. 39.112. NOTICE OF EXPIRATION AND PRICE CHANGE. (a) In
4351 this section, "fixed rate product" means a retail electric product
4452 with a term of at least three months for which the price for each
4553 billing period, including recurring charges, does not change
4654 throughout the term of the contract, except that the price may vary
4755 to reflect actual changes in transmission and distribution utility
4856 charges, changes to ERCOT or Texas Regional Entity administrative
4957 fees charged to loads, or changes to federal, state, or local laws
5058 that result in new or modified fees or costs that are not within the
5159 retail electric provider's control.
5260 (b) A retail electric provider shall provide a residential
5361 customer who has a fixed rate product with at least three [one]
5462 written notices [notice] of the date the fixed rate product will
55- expire. The notices [notice] must be provided during the last third
56- of the contract period and in intervals that allow for, as
57- practicable, even distribution of the notices throughout the last
58- third of the contract period. The final notice for a contract with
59- a period of more than four months must be provided at least 30 days
60- before the date that the contract will expire. The final notice for
61- a contract with a period of less than four months must be provided
62- at least 15 days before the date that the contract will expire.
63- (c) The retail electric provider must provide each notice
64- required by Subsection (b) to the customer by mail at the customer's
65- billing address, unless the customer has opted to receive
66- communications electronically from the retail electric provider.
67- (d) If the retail electric provider has access to customer
68- contact information that allows the provider to send the customer a
69- text message or call the customer, and the customer has agreed to
70- receive notices by text message or call, the retail electric
71- provider may provide additional notice to the customer by text
72- message or call of the date the fixed rate product will expire.
73- Notice provided by text message or call does not constitute notice
74- under Subsection (b).
75- (e) A notice required by Subsection (b) must:
76- (1) for a notice provided by mail, [be sent to the
77- customer's billing address by mail at least 30, but not more than
78- 60, days preceding the date the contract will expire;
63+ expire. The notices [notice] must be provided:
64+ (1) not less than 90 days and not more than 119 days
65+ before the date the contract will expire, for the first notice;
66+ (2) not less than 60 days and not more than 89 days
67+ before the date that the contract will expire, for the second
68+ notice; and
69+ (3) not less than 30 days and not more than 59 days
70+ before the date that the contract will expire, for the third notice.
71+ (c) Each notice under Subsection (b) must be provided to the
72+ customer:
73+ (1) by mail at the customer's billing address;
74+ (2) by e-mail, if the customer's e-mail address is
75+ available to the provider and if the customer has agreed to receive
76+ notices by e-mail; and
77+ (3) by text message, if the customer's text messaging
78+ contact information is available to the provider and if the
79+ customer has agreed to receive notices by text message.
80+ (d) A notice provided under Subsection (b) must:
81+ (1) [be sent to the customer's billing address by mail
82+ at least 30, but not more than 60, days preceding the date the
83+ contract will expire;
7984 [(2) be sent to the customer's e-mail address, if
8085 available to the provider and if the customer has agreed to receive
8186 notices electronically, at least 30, but not more than 60, days
8287 preceding the date the contract will expire;
83- [(3)] include in a manner visible from [on] the
84- outside of the envelope in which the notice is sent, a statement
85- that reads: "Contract Expiration Notice. See Enclosed.";
88+ [(3)] for a notice provided by mail, include in a manner
89+ visible from [on] the outside of the envelope in which the notice is
90+ sent, a statement that reads: "Contract Expiration Notice. See
91+ Enclosed.";
8692 (2) [(4)] if included with a customer's bill, be
8793 printed on a separate page or included as a separate document; [and]
8894 (3) [(5)] include a description of any fees or charges
8995 associated with the early termination of the customer's fixed rate
90- product; and
96+ product;
9197 (4) describe any renewal offers the retail electric
9298 provider chooses to make available to the customer and identify
9399 methods by which the customer may obtain the contract documents for
94- each of the offered products.
95- (f) The final notice provided under Subsection (b) must
96- include the pricing terms for the default renewal product required
97- by Subsection (h).
98- (g) [(c)] A retail electric provider shall include on each
100+ each of those products; and
101+ (5) include the pricing terms for the default renewal
102+ product required under Subsection (f).
103+ (e) [(c)] A retail electric provider shall include on each
99104 billing statement, in boldfaced and underlined text, the end date
100105 of the fixed rate product.
101- (h) Except as provided by Subsection (j), if a customer does
106+ (f) Except as provided by Subsection (h), if a customer does
102107 not select another retail electric product before the expiration of
103108 the customer's contract term with a retail electric provider, the
104109 provider shall automatically serve the customer through a default
105- renewal product that the customer may cancel at any time without a
106- fee. The default renewal product must be:
107- (1) a month-to-month product in which the price the
108- customer pays for electricity may vary between billing cycles; and
109- (2) based on clear terms designed to be easily
110- understood by the average customer.
111- (i) A retail electric provider shall include in each
112- contract for service the terms of the default renewal product that
113- the customer will automatically be enrolled in under Subsection (h)
114- if the customer does not select another retail electric product
115- before the expiration of the contract term.
116- (j) If a retail electric provider does not provide notice of
110+ renewal product. The default renewal product may be:
111+ (1) a fixed rate product; or
112+ (2) a month-to-month product in which the price the
113+ customer pays for electricity may vary between billing cycles.
114+ (g) A default renewal product that is a month-to-month
115+ product must be based on clear and easily understood terms
116+ described in the customer's most recent contract with the retail
117+ electric provider.
118+ (h) If a retail electric provider does not provide notice of
117119 the expiration of a customer's contract with the provider in
118120 accordance with this section and the customer does not select
119121 another retail electric product before the expiration of the
120- customer's contract term with the provider, the retail electric
121- provider must continue to serve the customer under the pricing
122- terms of the fixed rate product contract until:
122+ customer's contract term with the provider, the customer's fixed
123+ rate product remains in effect until:
123124 (1) the provider provides notice of the expiration of
124- the contract in accordance with this section; or
125+ the contract in accordance with this section and enrolls the
126+ customer in a default renewal product; or
125127 (2) the customer selects another retail electric
126128 product.
127- (k) [(d)] No provision in this section shall be construed to
129+ (i) [(d)] No provision in this section shall be construed to
128130 prohibit the commission from adopting rules that would provide a
129131 greater degree of customer protection.
130- SECTION 3. (a) Section 17.004, Utilities Code, is amended
131- by adding Subsection (a-1) to read as follows:
132- (a-1) Notwithstanding any other law, a buyer of retail
133- electric service has the right to:
134- (1) avoid discontinuation of electric service for
135- nonpayment on a Saturday or Sunday or a holiday observed by an
136- electric utility or retail electric provider, unless the utility or
137- provider is open to accept payment and restore service on that day;
138- (2) avoid discontinuation of electric service for a
139- period of 60 days of nonpayment if an electric utility or retail
140- electric provider receives written notice from a medical doctor
141- licensed to practice in this state or a state that shares a border
142- with this state that certifies that discontinuation of service
143- would create a life-threatening situation for the customer or a
144- permanent resident of the customer's household;
145- (3) negotiate with a retail electric provider a
146- deferred payment plan to avoid discontinuation of electric service
147- for a delinquent account in accordance with the utility's or
148- provider's terms and conditions;
149- (4) avoid discontinuation of electric service or
150- refusal of service for a location because a former occupant at that
151- location, not of the same household, failed to pay a previous bill;
152- (5) avoid disconnection of electric service during
153- periods when temperatures exceed 100 degrees Fahrenheit or fall
154- below 32 degrees Fahrenheit and at times described by Section
155- 39.101(h);
156- (6) avoid discontinuation of electric service on
157- account of nonpayment if the customer has been approved for Low
158- Income Home Energy Assistance Program benefits in an amount equal
159- to the delinquent balance, the customer has provided notice of the
160- approval to the electric utility, and the benefits are payable
161- before the 30th day after the date the customer provides the notice;
162- (7) avoid discontinuation of electric service for
163- failure to pay a portion of any bill that is in dispute if the
164- customer provides a deposit for the amount in dispute;
165- (8) avoid discontinuation of electric service for
166- nonpayment of bills if, as of 8 a.m. on the scheduled date of
167- disconnection, a freeze warning has been issued by the National
168- Weather Service for the county of the scheduled disconnection;
169- (9) avoid discontinuation of electric service for
170- nonpayment of bills if, as of 8 a.m. on the scheduled date of
171- disconnection, an excessive heat warning has been issued by the
172- National Weather Service for the county of the scheduled
173- disconnection;
174- (10) request a written explanation for the reason a
175- retail electric provider refuses to serve a customer if the utility
176- or provider refuses to initially serve the customer;
177- (11) receive a written explanation from an electric
178- provider that refuses to initially serve a customer, after the
179- customer provides the utility or provider with a valid mailing
180- address, that includes:
181- (A) the reason service is being refused; and
182- (B) a description of the actions the customer
183- must take in order to receive service;
184- (12) be given accurate and understandable information
185- concerning the price and terms of service for electric service; and
186- (13) have access through the commission to an
187- independent administrative process that provides a simple, quick,
188- and effective means of resolving complaints about electric service
189- and bills for customers who are unable to resolve disputed bills
190- directly with a retail electric provider.
191- (b) The Public Utility Commission of Texas shall adopt rules
192- as required to implement, administer, and enforce Section
193- 17.004(a-1), Utilities Code, as added by this section, not later
194- than July 1, 2022.
195- SECTION 4. The changes in law made by this Act apply only to
196- an enrollment or reenrollment of a customer in a retail electric
132+ SECTION 3. The changes in law made by this Act apply only to
133+ an enrollment or re-enrollment of a customer in a retail electric
197134 product that is executed on or after the effective date of this Act.
198- An enrollment or reenrollment of a customer in a retail electric
135+ An enrollment or re-enrollment of a customer in a retail electric
199136 product that is executed before the effective date of this Act is
200137 governed by the law as it existed immediately before the effective
201138 date of this Act, and that law is continued in effect for that
202139 purpose.
203- SECTION 5. This Act takes effect September 1, 2021.
140+ SECTION 4. This Act takes effect September 1, 2021.
141+ * * * * *