Amend CSHB 1777 on page __, line __, to add new section __ and 
renumber the remaining sections:
	SECTION___. Utilities Code is amended to create a new 
section, as follows:   
	39.208 Filing Terms of Service.                                         
	(a)  Application. This section applies to all affiliated 
retail electric providers ("AREP") but only with respect to each 
product or service that they offer or provide to any residential 
customer as well as each product or services that they offer or 
provide to any commercial customer whose peak demand is 1,000 
kilowatts or less. For the purpose of this section, an aggregation 
group is not considered a single customer. For each customer class, 
this section does not apply to that customer class if the AREP 
serves less than 40 percent of the customer meters for the relevant 
customer class within the affiliated transmission and distribution 
utility's certificated service area.
	(b)  Effective Terms of Service. No later than 45 days prior 
to the effective date, an AREP must file its Terms of Service with 
the commission. No AREP shall directly or indirectly demand, 
charge, or collect any rate or charge, or impose any 
classifications, practices, rules, or regulations different from 
those prescribed in the applicable effective Terms of Service filed 
with the commission. The Terms of Service shall include:
		1.  itemized prices or rates to be charged to a 
customer;            
		2.  any required length of service;                                    
		3.  all material terms and conditions, including, 
without limitation, exclusions, reservations, limitations, and 
conditions of the terms of services offered by the AREP; and
		4.  all other items specified by the commission by rule.               
	The AREP must provide the commission and all subscribing 
customers with at least 45 days notice of any change in its Terms of 
Service. An AREP may offer more than one version of Terms of Service 
to any particular customer class but only if each separate Terms of 
Service meets all of the requirements of this section and if each 
similarly situated customer has the right to choose that service.
	(c)  Availability of Terms of Service. Each AREP shall make 
available to the public at each of its business offices, designated 
sales offices within Texas and posted with the commission, all of 
its Terms of Service currently on file with the commission, and its 
employees shall lend assistance to persons seeking information on 
its Terms of Service and afford inquirers an opportunity to examine 
any Terms of Service upon request. The AREP also shall make the full 
text of each Terms of Service available on its website and shall 
provide copies of any portion of its Terms of Service at a 
reasonable cost. Any item filed confidentially with the commission 
shall not satisfy, in whole or in part, the requirements of this 
section. No portion of a Terms of Service filed under this section 
shall be considered confidential for any purpose.
	(d)  Notice. The commission shall determine the appropriate 
public notice required for changes in Terms of Service and shall 
require notice in the Texas Register of all Terms of Service 
filings.
	(e)  Review and Decision by Commission. The commission shall 
review each Terms of Service and must reject a Terms of Service if 
it determines that rate proposed by the AREP is:
		(1)  unreasonably preferential, prejudicial, or 
discriminatory;      
		(2)  subsidized either directly or indirectly by a 
regulated monopoly service, an affiliated power generation company 
or a transmission and distribution utility; or
		(3)  predatory or anticompetitive.                                     
	(f)  Transition period. All Terms of Service in effect on or 
after January 1, 2005, shall be filed with the commission no later 
than November 1, 2005.
	(g)  Withdrawal of a service. At least 45 days prior to 
discontinuing any service or rate, the AREP must file a notice of 
discontinuance of the service or price with the commission and 
shall send notice to all customers taking service under those Terms 
of Service. If the service has no current customers, the AREP shall 
provide an affidavit to this effect with a notice of discontinuance 
of the Terms of Service.