78R8500 JJT-D

By:  Barrientos                                                   S.B. No. 1164



A BILL TO BE ENTITLED

AN ACT

relating to customer safeguards concerning billing for electric 
service by municipally owned utilities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 17.005, Utilities Code, is amended to 
read as follows:   
	Sec. 17.005.  PROTECTIONS FOR CUSTOMERS OF MUNICIPALLY OWNED 
UTILITIES.  (a) A municipally owned utility may not be deemed to be 
a "service provider" or "billing agent" for purposes of Sections 
17.156(b) and (e).  The governing body of a municipally owned 
utility shall adopt, implement, and enforce rules that shall have 
the effect of accomplishing the objectives set out in Sections 
17.004(a) and (b) and 17.102, as to the municipally owned utility 
within its certificated service area.  The governing body of a 
municipally owned utility or its designee shall perform the dispute 
resolution function provided for by Section 17.157 for disputes 
arising from services provided by the municipally owned utility to 
electric customers served within the municipally owned utility's 
certificated service area.  With respect to electric customers 
served by a municipally owned utility outside its certificated 
service area or otherwise served through others' distribution 
facilities, after retail competition begins as authorized by the 
legislature, the provisions of this chapter as administered by the 
commission apply.  Nothing in this chapter shall be deemed to apply 
to a wholesale customer of a municipally owned utility.
	(b)  A municipally owned utility that bills a customer for 
charges for which the customer was previously underbilled shall:
		(1)  state clearly on the invoice which charges were 
underbilled;    
		(2)  include on the invoice or together with the 
invoice a notice of whether the municipality offers a payment plan 
to pay the previously underbilled charges over time, and if so, how 
to apply for the plan; and
		(3)  include on the invoice or together with the 
invoice customer service contact information.
	(c)  A municipally owned utility may substitute for the 
information required by Subsection (b)(1) a notice included with 
the invoice that states that the invoice includes previously 
underbilled charges.
	SECTION 2.  This Act takes effect September 1, 2003.