81R24696 JJT-F

By: Turner of Harris H.B. No. 1904

Substitute the following for H.B. No. 1904:

By: Solomons C.S.H.B. No. 1904

A BILL TO BE ENTITLED

AN ACT

relating to benefits and protections for certain residential electric service customers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 39.101, Utilities Code, is amended by adding Subsections (i), (j), (j-1), (k), (l), (m), (n), (o), (p), and (q) to read as follows:

(i) During the period beginning July 1 and ending September 30 of each year, a retail electric provider or other entity that provides retail electric service may not disconnect or authorize the disconnection of service to a residential customer who:

(1) shows that the customer is a low-income electric customer, as defined by Section 39.903(l), and requests, and complies with the terms of, a deferred payment plan described by Subsection (k);

(2) shows that the customer is a low-income electric customer, as defined by Section 39.903(l), is at least 65 years of age, and requests, and complies with the terms of, a deferred payment plan described by Subsection (m); or

(3) under commission rules, is designated as a critical care residential customer for whom an interruption or suspension of electric service will create a dangerous or life-threatening condition.

(j) On and after July 1, 2010, a retail electric provider or other entity that provides retail electric service shall provide clear notice of the legal protections available under Subsection (i) on or with each disconnection notice issued to a residential customer during the period beginning July 1 and ending September 30 of each year.

(j-1) A retail electric provider or other entity that provides retail electric service shall provide clear notice of the legal protections available under Subsection (i) on or with the first invoice issued to a residential customer during the period beginning July 1 and ending September 30 of each year. This subsection expires June 30, 2010.

(k) A retail electric provider or other entity that provides retail electric service, on request, shall offer a residential customer described by Subsection (i)(1) a deferred payment plan that allows the customer to avoid disconnection during the period provided by Subsection (i). The customer is eligible for a plan offered under this subsection if the customer:

(1) does not owe an outstanding balance from a deferred payment plan granted by the provider of electric service in a previous year that allowed the customer to avoid disconnection during the period provided by Subsection (i);

(2) pays at least 33 percent of the outstanding balance due; and

(3) agrees to pay the remaining balance in equal installments over the next five billing cycles, unless the customer agrees to a lesser number of installments.

(l) A customer granted a deferred payment plan under Subsection (k) may continue to avoid disconnection during the period described by Subsection (i) by:

(1) paying the additional amounts that become due, including the installment amount due; or

(2) paying at least 33 percent of the balance then currently due, including any installment amount due, and agreeing to pay the recalculated remaining balance in equal installments over the next five billing cycles, unless the customer agrees to a lesser number of installments.

(m) A retail electric provider or other entity that provides retail electric service, on request, shall offer a residential customer described by Subsection (i)(2) a deferred payment plan that allows the customer to avoid disconnection during the period provided by Subsection (i) without payment of any outstanding balance until after September 30. The customer is eligible for a plan offered under this subsection if the customer agrees to pay:

(1) 25 percent of the deferred charges when the first bill issued to the customer after September 30 is due; and

(2) the remaining balance in equal installments over the next five billing cycles, unless the customer agrees to a lesser number of installments.

(n) A retail electric provider or other entity that provides retail electric service shall allow a residential customer described by Subsection (i)(3) to pay unpaid amounts accumulated during the period provided by Subsection (i) over the next six billing cycles beginning with the first bill issued to the customer after September 30.

(o) A retail electric provider or other entity that provides retail electric service may encourage a residential customer described by Subsection (i)(2) or (3) to make a partial payment toward an amount deferred during the period provided by Subsection (i), but the provider shall inform the customer clearly that the customer may not be disconnected for nonpayment before October 1 following that period.

(p) Subsections (i) through (o) of this section do not apply to metered electric service sold to a residential customer on a prepaid basis. A critical care residential customer for whom an interruption or suspension of electric service will create a dangerous or life-threatening condition is not eligible for metered electric service sold on a prepaid basis.

(q) The commission by rule shall provide:

(1) uniform standards for a retail electric provider or other entity that provides retail electric service to apply when designating a critical care residential customer for whom an interruption or suspension of electric service will create a dangerous or life-threatening condition; and

(2) special protections and procedures for a retail electric provider or other entity that provides retail electric service to apply when disconnecting a critical care residential customer for whom an interruption or suspension of electric service will create a dangerous or life-threatening condition.

SECTION 2. The Public Utility Commission of Texas shall adopt rules to implement Sections 39.101(i), (j), (j-1), (k), (l), (m), (n), (o), (p), and (q), Utilities Code, as added by this Act, as quickly as practicable.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.