By Bailey H.B. No. 3726 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to customer rights and customer protections to benefit 1-3 consumers of electric energy. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle B, Title 2, Utilities Code, is amended 1-6 by adding Chapter 42 to read as follows: 1-7 CHAPTER 42. RIGHTS AND PROTECTION OF 1-8 ELECTRIC ENERGY CONSUMERS AND ELECTRIC INDUSTRY WORKERS 1-9 SUBCHAPTER A. EQUAL OPPORTUNITY 1-10 Sec. 42.001. EQUAL OPPORTUNITY FOR BENEFITS OF DEREGULATION. 1-11 (a) The commission shall ensure each utility treats each class of 1-12 its customers equitably and fairly as the utility implements laws 1-13 and rules that deregulate the electric industry. 1-14 (b) The commission by rule shall ensure that: 1-15 (1) service choices and discount rates are available 1-16 to all customers and classes of customers of the utility; 1-17 (2) a captive residential customer does not pay any 1-18 part of a cost that is avoided by another customer or customer 1-19 class; 1-20 (3) consumers have a broadened array of services from 1-21 which a consumer may choose, including: 2-1 (A) demand side management; 2-2 (B) energy generated by solar power or wind 2-3 power systems; 2-4 (C) substitution of electric energy with an 2-5 alternative fuel; 2-6 (D) green marketing; and 2-7 (E) renewable line extension alternatives and 2-8 locations. 2-9 Sec. 42.002. REIMBURSEMENT FOR PARTICIPATION. The 2-10 commission by rule shall provide for reimbursement for active 2-11 participation in commission proceedings by a nonprofit corporation 2-12 or a low-income consumer group. 2-13 Sec. 42.003. UNIVERSAL SERVICE. The commission by rule 2-14 shall ensure that a utility offers to residential electric energy 2-15 consumers, including persons with low incomes, an affordable basic 2-16 electric service package. 2-17 (Sections 42.004-42.020 reserved for expansion) 2-18 SUBCHAPTER B. CONSUMER PROTECTIONS 2-19 Sec. 42.021. CUSTOMER PRIVACY. (a) A person that 2-20 distributes or supplies electric energy to a customer may not 2-21 release information about the customer to any other person without 2-22 the customer's written permission. A customer that provides 2-23 written permission may revoke the permission at any time. 2-24 (b) A person that distributes or supplies electric energy to 2-25 customers may release to another person information regarding its 3-1 customer base if the information does not disclose information 3-2 about an individual customer. 3-3 (c) Notwithstanding Subsection (a) and as otherwise provided 3-4 by law, a person that distributes or supplies electric energy to 3-5 customers may reveal information concerning an individual customer 3-6 to: 3-7 (1) a law enforcement agency; or 3-8 (2) a consumer credit collection agency. 3-9 Sec. 42.022. CUSTOMER BILLING. (a) A distributor or 3-10 supplier of electric energy shall offer to all of its customers: 3-11 (1) a deferred payment plan; and 3-12 (2) a billing plan allowing for equal monthly 3-13 payments. 3-14 (b) A distributor or supplier of electric energy shall 3-15 provide on the face of its bills for services: 3-16 (1) the identity of the person that issued the bill 3-17 and telephone numbers for customer service; 3-18 (2) the type of meter used at the service delivery 3-19 point; 3-20 (3) the meter reading for the billing period and the 3-21 usage for the period measured in kilowatt-hours; 3-22 (4) an explanation of the services and products 3-23 provided to the customer since the previous billing period; 3-24 (5) whether the services are subject to interruption 3-25 or curtailment; 4-1 (6) the variable and fixed prices of electricity, 4-2 transmission, distribution, and other services and products; 4-3 (7) any other charges or fees due; 4-4 (8) the prices of services and products stated in a 4-5 manner that permits the customer readily to recompute the bill 4-6 amount; 4-7 (9) a clear explanation of all services and charges; 4-8 (10) the sources of electricity supplied, listed by 4-9 generation type and the percentage of the energy delivered that was 4-10 generated by each type, presented in a table and by a pie-chart 4-11 graph; 4-12 (11) a table illustrating the amount of air 4-13 contaminants emitted in generating the electric energy supplied; 4-14 and 4-15 (12) the amount of electric energy the customer used 4-16 in the previous billing period. 4-17 Sec. 42.023. COST SHIFTING; REGULATORY REMEDY. (a) A 4-18 distributor or supplier of electric energy may not charge a class 4-19 of customers for transmission or distribution service in an amount 4-20 that exceeds the class's pro rata share of the distributor's or 4-21 supplier's costs of transmission or distribution. 4-22 (b) If a distributor or supplier's rate differential between 4-23 residential and industrial customers exceeds three percent, the 4-24 commission by order shall adjust access charges to achieve a 4-25 differential of not more than three percent. 5-1 Sec. 42.024. CHANGE OF PROVIDER. The commission by rule 5-2 shall set standards for contracts between a customer and the 5-3 persons who provide electric energy to the customer. The standards 5-4 must provide that the contract may not prohibit the customer from 5-5 changing to another provider but may provide for clearly stated 5-6 penalties under the contract for making a change of providers. 5-7 Sec. 42.025. SERVICE DISCONNECTIONS AND SUPPLIER 5-8 TERMINATIONS. (a) The commission by rule shall provide for 5-9 protections for consumers designed to prevent an unreasonable 5-10 distribution service disconnection or an unreasonable supply 5-11 termination. 5-12 (b) A distributor or supplier of electric energy may not 5-13 disconnect or terminate a customer's electric service without 5-14 adequate notice to the customer or for: 5-15 (1) the failure of the customer to pay for any service 5-16 other than the supply of electric energy; or 5-17 (2) the failure of the customer's lessor to pay for 5-18 service. 5-19 (c) A distributor or supplier of electric energy may not 5-20 disconnect or terminate the electric service of a customer who 5-21 gives the distributor or supplier a doctor's written notice that a 5-22 medical emergency requires continued service or that disconnection 5-23 or termination of electric service would cause a medical emergency. 5-24 Sec. 42.026. CREDIT AND COLLECTION PRACTICES. (a) A 5-25 distributor of electric energy that bills for a supplier of 6-1 electric energy shall allocate a customer's partial payment of an 6-2 amount due primarily to services regulated by the regulatory 6-3 authority and may apply the amount of the partial payment that 6-4 remains to satisfy the amounts owed for the unregulated services. 6-5 (b) A retail supplier of electric energy may not refuse to 6-6 grant a prospective customer credit on application in contravention 6-7 of the terms of the Equal Credit Opportunity Act. 6-8 (c) A retail supplier of electric energy may not require 6-9 from a prospective customer a deposit of more than the amount of 6-10 the customer's anticipated bills for the first two months of 6-11 service. 6-12 Sec. 42.027. MARKETING PRACTICES. (a) The commission by 6-13 rule shall prohibit: 6-14 (1) slamming and cramming; 6-15 (2) gifts to customers or prospective customers that 6-16 exceed the value of $50 from a distributor or supplier of 6-17 electricity; and 6-18 (3) misleading advertising. 6-19 (b) The commission by rule shall require a distributor or 6-20 supplier of electric energy to: 6-21 (1) bill customers accurately and understandably; 6-22 (2) supply customers with essential information and 6-23 disclosures expressed clearly in plain English and Spanish; and 6-24 (3) meet standards relating to service quality and 6-25 customer service, including the installation and repair of 7-1 equipment related to services. 7-2 Sec. 42.028. METERING. A distributor of electric energy 7-3 shall provide a standard meter at no cost to a customer at a 7-4 location that the distributor has not previously served. A 7-5 customer may purchase, lease, or install a different meter without 7-6 a penalty. A meter must measure time-of-use. A distributor of 7-7 electric energy may not require a customer to use a prepayment 7-8 meter. 7-9 Sec. 42.029. DISPUTES. (a) A distributor or supplier of 7-10 electric energy shall make a dispute resolution process available 7-11 to customers that will protect the interests of the customers. The 7-12 process may not require: 7-13 (1) the arbitration of a dispute; or 7-14 (2) a whole or partial payment of an amount in dispute 7-15 for the customer to participate in the process. 7-16 (b) A distributor or supplier may not disconnect or 7-17 terminate service to a customer while a dispute is pending. 7-18 Sec. 42.030. CUSTOMER AGGREGATION. (a) The commission by 7-19 rule shall encourage the creation of entities to represent 7-20 aggregations of customers and other means of customer aggregation, 7-21 including: 7-22 (1) new municipal electric systems; 7-23 (2) franchise contracts; 7-24 (3) community choice aggregation; and 7-25 (4) cooperative buying clubs. 8-1 (b) The commission shall make consumers aggregated by a 8-2 nonprofit aggregation eligible to control money collected for 8-3 energy efficiency and renewable energy programs. 8-4 (Sections 42.031-42.050 reserved for expansion) 8-5 SUBCHAPTER C. POLLUTION STANDARDS 8-6 Sec. 42.051. AIR CONTAMINANTS STANDARDS. (a) The Texas 8-7 Natural Resource Conservation Commission shall require all electric 8-8 generation facilities to meet standards for the emission of air 8-9 contaminants per kilowatt-hour of electric energy generated. 8-10 (b) The Texas Natural Resource Conservation Commission shall 8-11 establish limitations on the amount of the following air 8-12 contaminants emitted by an electric generation facility with which 8-13 each facility shall comply on or before January 1, 2005: 8-14 (1) nitrogen oxides; 8-15 (2) sulfur dioxide; and 8-16 (3) carbon dioxide. 8-17 (c) The Texas Natural Resource Conservation Commission shall 8-18 decrease the limitation on carbon dioxide in equal steps each year 8-19 so that in the year 2010 not more than 380 million tons of carbon 8-20 dioxide may be emitted for the generation of electricity. 8-21 Sec. 42.052. STANDARDS FOR MERCURY. The Texas Natural 8-22 Resource Conservation Commission by rule shall provide for the 8-23 elimination of the use, production, or disposal of mercury by a 8-24 generator of electricity not later than January 1, 2010. 8-25 Sec. 42.053. STANDARDS FOR RADIOACTIVE WASTE. The Texas 9-1 Natural Resource Conservation Commission shall provide a standard 9-2 for nuclear power generation of electric energy that will reduce 9-3 the amount of radiation produced radioactive waste from that 9-4 process by: 9-5 (1) two percent each year for high-level radioactive 9-6 waste; and 9-7 (2) five percent each year for low-level radioactive 9-8 waste. 9-9 Sec. 42.054. STANDARDS FOR OTHER HAZARDOUS SUBSTANCES. The 9-10 Texas Natural Resource Conservation Commission by rule shall 9-11 provide for the reduction each year of hazardous substances 9-12 produced in the generation of electric energy. 9-13 (Sections 42.055-42.070 reserved for expansion) 9-14 SUBCHAPTER D. PROTECTIONS OF LABOR 9-15 Sec. 42.071. RECOVERABLE COSTS. The commission shall permit 9-16 a utility to recover the costs of a program that provides for 9-17 voluntary employee severance, job retraining for employees, early 9-18 retirement of employees, continuing health care for employees, 9-19 outplacement of former employees, and other related benefits. 9-20 Sec. 42.072. WORKFORCE IMPACT PLAN. The commission by rule 9-21 shall require a utility to submit a plan for the utility to 9-22 mitigate the negative effects on its employees of any workforce 9-23 reduction. 9-24 Sec. 42.073. CONTRACT CONSISTENCY. The commission by rule 9-25 may not permit a change in the ownership of a facility that 10-1 generates electric energy unless the owner of the facility agrees 10-2 to employ the workers at the facility at similar wage rates and 10-3 benefits and subject to any labor union contract in effect. 10-4 (Sections 42.074-42.090 reserved for expansion) 10-5 SUBCHAPTER E. ENFORCEMENT 10-6 Sec. 42.091. STATE AGENCY ACTION. The commission and the 10-7 Texas Natural Resource Conservation Commission shall enforce this 10-8 chapter and rules adopted and orders issued under this chapter. 10-9 Sec. 42.092. CUSTOMER DAMAGES. A customer injured by a 10-10 violation of this chapter or a rule adopted or order issued under 10-11 this chapter has a cause of action against the violator for damages 10-12 caused by the violation or for equitable relief. A customer who 10-13 prevails in a suit filed under this section is entitled to recover 10-14 attorneys' fees and court costs. 10-15 SECTION 2. The importance of this legislation and the 10-16 crowded condition of the calendars of both houses create an 10-17 emergency and an imperative public necessity that the 10-18 constitutional rule requiring bills to be read on three several 10-19 days in each house be suspended, and this rule is hereby suspended, 10-20 and that this Act take effect and be in force from and after its 10-21 passage, and it is so enacted.