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.