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