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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 83(R)

House Bill 2532

House Author:  Workman et al.

Effective:  9-1-13

Senate Sponsor:  Fraser


            House Bill 2532 amends the Utilities Code to establish standards for propane distribution system retailers applicable to the retail sale of propane gas made by a distribution system retailer through a propane gas system and inapplicable to any other retail or wholesale sale of propane gas.  The bill requires a distribution system retailer to charge a customer a just and reasonable rate for propane gas and sets out criteria for such rate.  The bill authorizes a distribution system retailer to also charge customers special service fees if such fees are reasonable and customary and provides for the adjustment of such fees.  The bill specifies that its rate and fee ceiling provisions do not limit a distribution system retailer's ability to pass through to a customer as a separate charge certain taxes and other costs.

House Bill 2532 prohibits a distribution system retailer from disconnecting propane gas service to a residential customer on certain days or during an extreme weather emergency.  The bill requires a distribution system retailer to make all reasonable efforts to prevent service interruptions, sets out recordkeeping and notification requirements regarding such interruptions, and requires the Railroad Commission of Texas to establish and maintain a toll-free telephone number by which a customer may notify the railroad commission of a service interruption and requires the railroad commission to immediately investigate such a notification.

House Bill 2532 authorizes the railroad commission, in order to restore and maintain service, to assume temporary operational control of a propane gas system that experiences certain service interruptions.  The bill provides for the appointment of a receiver to collect the assets and carry on the business of a distribution system retailer that has abandoned operation of its facilities, informs the railroad commission that the owner is abandoning the system, or experiences certain service interruptions.  The bill sets out provisions regarding such receivership.

House Bill 2532 establishes the conditions under which a distribution system retailer may refuse service to an applicant for new service or to an existing customer for continued service or reconnection.  The bill sets out procedures and requirements regarding customer complaints and provides for certain sanctions against a distribution system retailer for rate and fee violations.  The bill requires a distribution system retailer to post, in favor of the railroad commission as a performance guarantee, financial surety in a specified amount.  The bill sets out certain disclosure requirements for a distribution system retailer and also establishes notice requirements for a homeowner who proposes to sell or convey real property located in a propane gas system service area owned by such a retailer.