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.