By Bosse H.B. No. 793 76R3881 DWS-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to ensuring that customers receive reliable and affordable 1-3 electric energy services with adequate consumer protections. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 38, Utilities Code, is amended by adding 1-6 Subchapter E to read as follows: 1-7 SUBCHAPTER E. CUSTOMER SAFEGUARDS 1-8 Sec. 38.091. APPLICATION AND IMPLEMENTATION OF SUBCHAPTER. 1-9 (a) This subchapter prescribes basic rights and protections for 1-10 electric utility customers, including residential customers. 1-11 (b) This subchapter does not affect a right or protection an 1-12 electric utility customer has under another provision of this title 1-13 or under other law. 1-14 (c) This subchapter applies without exception to a retail 1-15 electric utility regardless of whether the utility is a monopoly, 1-16 is transitioning to a competitive regulatory environment, or is a 1-17 provider in a competitive retail electric market. 1-18 (d) The commission shall adopt rules to implement and 1-19 enforce this subchapter. 1-20 Sec. 38.092. EQUAL OPPORTUNITY FOR BENEFIT. (a) The 1-21 commission shall ensure that each commission rule and policy treats 1-22 each customer and customer class equitably and fairly. 1-23 (b) In implementing and enforcing this section, the 1-24 commission shall ensure that: 2-1 (1) service choices and discounted rates, if 2-2 applicable, are available to all customers and customer classes; 2-3 (2) captive, residential customers are not required to 2-4 pay costs avoided by other customers; 2-5 (3) customer choices are broadened to include other 2-6 types of electric energy services, such as demand-side management, 2-7 solar and wind energy, cost-effective substitution of electric 2-8 energy with alternative fuels, green marketing, and renewable 2-9 energy line extension alternatives, in locations where those types 2-10 of services are reasonably available; and 2-11 (4) reasonable financial reimbursement is provided for 2-12 active participation by nonprofit and low-income consumer groups 2-13 and environmental groups in a commission proceeding in which: 2-14 (A) the financial needs of the groups are small 2-15 in comparison to the potential benefits of their participation; and 2-16 (B) the participation of the groups is necessary 2-17 to fully represent a legitimate viewpoint in the proceeding. 2-18 (c) Reimbursement under Subsection (b)(4) must be provided 2-19 by the utility or utilities engaged in the commission proceeding. 2-20 Sec. 38.093. UNIVERSAL SERVICE. (a) Electricity is an 2-21 essential service necessary for health and safety and each resident 2-22 of this state is entitled to basic electric utility service at a 2-23 reasonable price. 2-24 (b) The commission shall ensure that universal electric 2-25 utility service, including an affordable basic service package, is 2-26 available to all residential electric utility customers, including 2-27 low-income customers. 3-1 Sec. 38.094. CONSUMER PROTECTIONS. (a) Each electric 3-2 energy customer, regardless of service provider, is entitled, at a 3-3 minimum, to have customer service standards and consumer 3-4 protections at least as strong as those in effect on the effective 3-5 date of this section. 3-6 (b) The commission shall ensure that each customer has, at a 3-7 minimum: 3-8 (1) access to customer service offices; 3-9 (2) sufficient unbiased information on which to make 3-10 decisions, including information relating to service and pricing 3-11 options that is clear, accurate, written in plain language, and 3-12 available in English or Spanish; 3-13 (3) accurate and understandable bills; 3-14 (4) disclosure of unbundled cost and price; 3-15 (5) disclosure of fuel mix and generation profile of 3-16 the service provider; 3-17 (6) notice of risk of fuel price volatility; 3-18 (7) access to a provider's complaint history; 3-19 (8) protection against service disconnection in 3-20 extreme weather conditions, in cases of medical necessity, or in 3-21 cases of nonpayment for unrelated services; 3-22 (9) adequate notice of a proposed service termination, 3-23 a change in the quality of service, or a change in the price of 3-24 service; 3-25 (10) the right to quickly resolve service and billing 3-26 problems and the right to appeal an unfair utility action to an 3-27 impartial regulator and to have a complaint resolved quickly 4-1 through a simplified hearings process; and 4-2 (11) protection against abusive or anti-competitive 4-3 practices, including rules relating to: 4-4 (A) credit and collection practices, connection 4-5 and reconnection, repair, complaint handling, and billing; 4-6 (B) deposit requirements; 4-7 (C) disconnection policies; 4-8 (D) the form and content of bills; and 4-9 (E) bill payments. 4-10 (c) In implementing and enforcing the protections required 4-11 by Subsection (b), the commission shall ensure that downsizing and 4-12 layoffs do not result in customer inconvenience and service delays. 4-13 (d) Each customer is entitled to have information about 4-14 customer billing, payment, and usage history kept strictly 4-15 confidential. An electric utility or other person may aggregate 4-16 information in a manner that masks the usage, billing, and payment 4-17 history of an individual customer. Nonaggregated information may 4-18 be released only with the express written consent of the customer 4-19 in accordance with procedures adopted by the commission. In 4-20 addition, the commission shall adopt nondiscriminatory rules 4-21 regarding telemarketing calls relating to retail electric service. 4-22 (e) Each customer is entitled to fair and reasonable 4-23 marketing, sales, and business practices. The commission may bring 4-24 an action under Subchapter E, Chapter 17, Business & Commerce Code, 4-25 if an allegedly false, misleading, or deceptive act or practice 4-26 involves a good or service that is related to electricity. A 4-27 customer must notify the commission if the customer brings an 5-1 action under Subchapter E, Chapter 17, Business & Commerce Code, 5-2 against an electric provider who is under the commission's 5-3 jurisdiction. 5-4 Sec. 38.095. RELIABILITY AND SAFETY. (a) Each customer 5-5 class is entitled to reliable and safe electric energy service. 5-6 (b) The commission shall: 5-7 (1) establish clear and enforceable service 5-8 reliability and safety standards; 5-9 (2) establish service quality standards that all 5-10 service providers must meet and that are comparable to or superior 5-11 to standards applicable to electric utilities on the effective date 5-12 of this section; 5-13 (3) ensure that improvements are made in any area in 5-14 which service is not adequately reliable; and 5-15 (4) ensure that downsizing and layoffs do not occur at 5-16 the expense of the safety and reliability of the electric energy 5-17 system. 5-18 SECTION 2. This Act takes effect September 1, 1999. 5-19 SECTION 3. The importance of this legislation and the 5-20 crowded condition of the calendars in both houses create an 5-21 emergency and an imperative public necessity that the 5-22 constitutional rule requiring bills to be read on three several 5-23 days in each house be suspended, and this rule is hereby suspended.