81R20440 TRH-F

By: Turner of Harris H.B. No. 2305

Substitute the following for H.B. No. 2305:

By: Solomons C.S.H.B. No. 2305

A BILL TO BE ENTITLED

AN ACT

relating to security deposits for customers of retail electric providers.

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

SECTION 1. Section 39.101(a), Utilities Code, is amended to read as follows:

(a) The [Before customer choice begins on January 1, 2002, the] commission shall ensure that retail customer protections are established that entitle a customer:

(1) to safe, reliable, and reasonably priced electricity, including protection against service disconnections in an extreme weather emergency as provided by Subsection (h) or in cases of medical emergency or nonpayment for unrelated services;

(2) to privacy of customer consumption and credit information;

(3) to bills presented in a clear format and in language readily understandable by customers;

(4) to the option to have all electric services on a single bill, except in those instances where multiple bills are allowed under Chapters 40 and 41;

(5) to protection from discrimination on the basis of race, color, sex, nationality, religion, or marital status;

(6) to accuracy of metering and billing;

(7) to information in English and Spanish and any other language as necessary concerning rates, key terms and conditions, in a standard format that will permit comparisons between price and service offerings, and the environmental impact of certain production facilities;

(8) to information in English and Spanish and any other language as necessary concerning low-income assistance programs and deferred payment plans; [and]

(9) to other information or protections necessary to ensure high-quality service to customers; and

(10) to a refund of a security deposit or other money owed to the customer on the withdrawal of the customer's retail electric provider from competition in this state.

SECTION 2. Subchapter C, Chapter 39, Utilities Code, is amended by adding Section 39.110 to read as follows:

Sec. 39.110. CUSTOMER DEPOSIT FUND. (a) The customer deposit fund is a trust fund held outside the state treasury by a financial institution eligible to be a state depository under Chapter 404, Government Code, that is selected by the commission. Money in the fund may be used only to repay a security deposit to a customer of a retail electric provider.

(b) The commission shall:

(1) deposit each customer deposit remitted under Subsection (c) to the credit of the customer deposit fund;

(2) remit to a retail electric provider an amount equal to the amount of a customer's security deposit plus interest on the deposit, when the retail electric provider demonstrates that the security deposit has been returned to the customer with interest as provided by Chapter 183, minus any deductions for payments due;

(3) remit to a retail electric provider an amount equal to the amount of interest on a deposit remitted to a customer on request as provided by Section 183.004 when the retail electric provider demonstrates that the interest has been paid to the customer; and

(4) conduct an annual review of the customer deposit fund, including a review of the interest projected to be earned by the fund.

(c) A retail electric provider shall remit to the commission each security deposit the provider receives from a customer. The commission may require a retail electric provider to submit a report regarding remissions of security deposits for deposit to the fund or returns of security deposits to customers. A report submitted under this subsection must contain any information the commission requires to evaluate a retail electric provider's compliance with this section.

(d) The commission quarterly shall publish a report of customer deposit fund deposits, disbursements, and earnings.

(e) The commission shall adopt rules to implement this section. At a minimum, the rules must establish:

(1) the procedures by which a retail electric provider shall remit security deposits to the commission;

(2) the information that must be contained in a report required under Subsection (c);

(3) a schedule for the return of a customer's security deposit by a retail electric provider and the reimbursement of a retail electric provider from the fund for returned deposits, minus any deductions for payments due; and

(4) procedures for the review required by Subsection (b)(4), including a method of administrative review that ensures that a retail electric provider remits each customer's security deposit to the commission and returns each customer's security deposit and interest to the customer when necessary, minus any deductions for payments due.

SECTION 3. (a) The Public Utility Commission of Texas shall adopt rules consistent with Section 39.110, Utilities Code, as added by this Act, not later than December 1, 2009.

(b) The changes in law made by this Act apply only to a security deposit that is received by a retail electric provider on or after the effective date of this Act. A security deposit that is received before the effective date of this Act is subject to the law in effect on the date of receipt, and that law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2009.