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A BILL TO BE ENTITLED
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AN ACT
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relating to certain protections for customers in the restructured |
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electric services market. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.101, Utilities Code, is amended by |
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amending Subsection (h) and adding Subsections (i), (j), (j-1), |
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(k), (l), (m), (n), (o), (p), and (q) to read as follows: |
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(h) A retail electric provider, power generation company, |
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aggregator, or other entity that provides retail electric service |
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may not disconnect service to a residential customer during an |
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extreme weather emergency or on a weekend day. The entity providing |
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service shall defer collection of the full payment of bills that are |
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due during an extreme weather emergency until after the emergency |
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is over and shall work with customers to establish a pay schedule |
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for deferred bills. For purposes of this subsection, "extreme |
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weather emergency" means [a period when]: |
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(1) a period when the previous day's highest |
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temperature did not exceed 32 degrees Fahrenheit and the |
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temperature is predicted to remain at or below that level for the |
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next 24 hours according to the nearest National Weather Service |
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reports; [or] |
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(2) a day for which the National Weather Service |
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forecasts that the [issues a] heat index will reach or exceed 105 |
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degrees Fahrenheit in [advisory for] any part of a county in the |
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relevant service territory;[,] or |
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(3) a period when, [such an advisory has been issued] |
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on any one of the previous two calendar days, the National Weather |
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Service observes a heat index of 105 degrees Fahrenheit or more in |
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any part of a county in the relevant service territory. |
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(i) During the period beginning July 1 and ending September |
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30 of each year, a retail electric provider or other entity that |
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provides retail electric service may not disconnect or authorize |
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the disconnection of service to a residential customer who: |
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(1) shows that the customer is a low-income electric |
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customer, as defined by Section 39.903(l), and requests, and |
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complies with the terms of, a deferred payment plan described by |
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Subsection (k); |
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(2) shows that the customer is a low-income electric |
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customer, as defined by Section 39.903(l), is at least 65 years of |
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age, and requests, and complies with the terms of, a deferred |
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payment plan described by Subsection (m); or |
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(3) under commission rules, is designated as a |
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critical care residential customer for whom an interruption or |
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suspension of electric service will create a dangerous or |
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life-threatening condition. |
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(j) On and after July 1, 2010, a retail electric provider or |
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other entity that provides retail electric service shall provide |
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clear notice of the legal protections available under Subsection |
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(i) on or with each disconnection notice issued to a residential |
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customer during the period beginning July 1 and ending September 30 |
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of each year. |
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(j-1) A retail electric provider or other entity that |
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provides retail electric service shall provide clear notice of the |
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legal protections available under Subsection (i) on or with an |
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invoice issued to a residential customer during the period |
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beginning July 1 and ending September 30 of each year. This |
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subsection expires June 30, 2010. |
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(k) A retail electric provider or other entity that provides |
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retail electric service, on request, shall offer a residential |
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customer described by Subsection (i)(1) a deferred payment plan |
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that allows the customer to avoid disconnection during the period |
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provided by Subsection (i). The customer is eligible for a plan |
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offered under this subsection if the customer: |
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(1) does not owe an outstanding balance from a |
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deferred payment plan granted by any provider of electric service |
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in a previous year that allowed the customer to avoid disconnection |
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during the period provided by Subsection (i); |
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(2) pays a minimum of 33 percent of the outstanding |
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balance due; and |
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(3) agrees to pay the remaining balance in equal |
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installments over the next five billing cycles, unless the customer |
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agrees to a lesser number of installments. |
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(l) A customer granted a deferred payment plan under |
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Subsection (k) may continue to avoid disconnection during the |
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period described by Subsection (i) by: |
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(1) paying the additional amounts that become due, |
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including the installment amount due; or |
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(2) paying a minimum of 33 percent of the balance then |
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currently due, including any installment amount due, and agreeing |
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to pay the recalculated remaining balance in equal installments |
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over the next five billing cycles, unless the customer agrees to a |
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lesser number of installments. |
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(m) A retail electric provider or other entity that provides |
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retail electric service, on request, shall offer a residential |
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customer described by Subsection (i)(2) a deferred payment plan |
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that allows the customer to avoid disconnection during the period |
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provided by Subsection (i) without payment of any outstanding |
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balance until after September 30. The customer is eligible for a |
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plan offered under this subsection if the customer agrees to pay: |
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(1) a minimum of 25 percent of the deferred charges |
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when the first bill issued to the customer after September 30 is |
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due; and |
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(2) the remaining balance in equal installments over |
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the next five billing cycles, unless the customer agrees to a lesser |
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number of installments. |
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(n) A retail electric provider or other entity that provides |
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retail electric service shall allow a residential customer |
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described by Subsection (i)(3) to pay unpaid amounts accumulated |
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during the period provided by Subsection (i) over the next six |
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billing cycles beginning with the first bill issued to the customer |
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after September 30. |
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(o) A retail electric provider or other entity that provides |
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retail electric service may encourage a residential customer |
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described by Subsection (i)(2) or (3) to make a partial payment |
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toward an amount deferred during the period provided by Subsection |
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(i), but the provider shall inform the customer clearly that the |
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customer may not be disconnected for nonpayment before October 1 |
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following that period. |
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(p) Subsections (i) through (o) of this section do not apply |
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to metered electric service sold to a residential customer on a |
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prepaid basis. A critical care residential customer for whom an |
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interruption or suspension of electric service will create a |
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dangerous or life-threatening condition is not eligible for metered |
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electric service sold on a prepaid basis. |
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(q) The commission by rule shall provide: |
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(1) uniform standards for an electric utility to apply |
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when designating a critical care residential customer for whom an |
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interruption or suspension of electric service will create a |
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dangerous or life-threatening condition; and |
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(2) special protections and procedures for an electric |
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utility to apply when disconnecting a critical care residential |
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customer for whom an interruption or suspension of electric service |
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will create a dangerous or life-threatening condition. |
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SECTION 2. Section 39.151(c), Utilities Code, is amended to |
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read as follows: |
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(c) The commission shall certify an independent |
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organization or organizations to perform the functions prescribed |
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by this section. The commission shall apply the provisions of this |
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section and Sections 39.1511, 39.1512, [and] 39.1515, and 39.1516 |
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so as to avoid conflict with a ruling of a federal regulatory body. |
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SECTION 3. Subchapter D, Chapter 39, Utilities Code, is |
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amended by adding Section 39.1516 to read as follows: |
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Sec. 39.1516. RETAIL ELECTRIC MARKET MONITOR. (a) An |
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independent organization certified under Section 39.151 shall |
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contract with an entity selected by the commission to act as the |
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commission's retail electric market monitor to detect and prevent |
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market manipulation strategies, unfair, misleading, or deceptive |
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practices and to recommend measures to enhance the efficiency of |
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the retail market. |
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(b) The independent organization shall provide to the |
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personnel of the retail market monitor: |
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(1) full access to the organization's records that |
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concern operations, settlement, and reliability of the retail |
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market; and |
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(2) other support and cooperation the commission |
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determines is necessary for the retail market monitor to perform |
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the retail market monitor's functions. |
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(c) The independent organization shall use money from the |
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rate authorized by Section 39.151(e) to pay for the retail market |
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monitor's activities. |
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(d) The commission is responsible for ensuring that the |
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retail market monitor has the resources, expertise, and authority |
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necessary to monitor the retail electric market effectively and |
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shall adopt rules and perform oversight of the retail market |
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monitor as necessary. The retail market monitor shall operate |
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under the supervision and oversight of the commission. The |
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commission shall retain all enforcement authority conferred under |
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this title, and this section may not be construed to confer |
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enforcement authority on the retail market monitor or to authorize |
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the commission to delegate the commission's enforcement authority |
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to the retail market monitor. The commission by rule shall define: |
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(1) the retail market monitor's monitoring |
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responsibilities, including reporting obligations and limitations; |
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(2) the standards for funding the retail market |
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monitor, including staffing requirements; |
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(3) qualifications for personnel of the retail market |
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monitor; and |
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(4) ethical standards for the retail market monitor |
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and the personnel of the retail market monitor. |
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(e) In adopting rules governing the standards for funding |
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the retail market monitor, the commission shall consult with a |
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subcommittee of the independent organization's governing body to |
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receive information on how money is or should be spent for market |
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monitoring functions. Rules governing ethical standards must |
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include provisions designed to ensure that the personnel of the |
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retail market monitor are professionally and financially |
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independent from market participants. The commission shall develop |
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and implement policies that clearly separate the policymaking |
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responsibilities of the commission and the monitoring, analysis, |
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and reporting responsibilities of the retail market monitor. |
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(f) The retail market monitor immediately shall report |
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directly to the commission any potential market manipulations and |
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any discovered or potential violations of commission rules or rules |
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of the independent organization. |
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(g) The personnel of the retail market monitor may |
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communicate with commission staff on any matter without |
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restriction. |
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(h) The retail market monitor annually shall submit to the |
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commission and the independent organization a report that |
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identifies market design flaws and recommends methods to correct |
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the flaws. The commission and the independent organization shall |
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review the report and evaluate whether changes to rules of the |
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commission or the independent organization should be made. |
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SECTION 4. Section 39.157, Utilities Code, is amended by |
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amending Subsection (a) and adding Subsection (a-1) to read as |
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follows: |
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(a) The commission shall monitor market power associated |
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with the generation, transmission, distribution, and sale of |
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electricity in this state. On a finding that market power abuses or |
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other violations of this section have occurred or are occurring, |
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the commission shall require reasonable mitigation of the market |
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power by one or any combination of the following: |
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(1) ordering the construction of additional |
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transmission or distribution facilities; |
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(2) [, by] seeking an injunction or civil penalties as |
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necessary to eliminate or to remedy the market power abuse or |
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violation as authorized by Chapter 15; |
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(3) [, by] imposing an administrative penalty as |
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authorized by Chapter 15; |
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(4) ordering refunds to affected parties pursuant to |
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Section 17.157; |
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(5) with regard to the wholesale market, ordering |
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refunds to affected parties in a manner established by the |
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commission; or |
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(6) [, or by] suspending, revoking, or amending a |
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certificate or registration as authorized by Section 39.356. |
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(a-1) The commission shall permit the office, in exercising |
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its powers to represent residential and small commercial consumers, |
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to participate in enforcement proceedings to seek refunds for |
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alleged market power abuses or manipulation of the wholesale |
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market. Section 15.024(c) does not apply to an administrative |
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penalty imposed under this section. For purposes of this |
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subchapter, market power abuses are practices by persons possessing |
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market power that are unreasonably discriminatory or tend to |
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unreasonably restrict, impair, or reduce the level of competition, |
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including practices that tie unregulated products or services to |
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regulated products or services or unreasonably discriminate in the |
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provision of regulated services. For purposes of this section, |
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"market power abuses" include predatory pricing, withholding of |
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production, precluding entry, and collusion. A violation of the |
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code of conduct provided by Subsection (d) that materially impairs |
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the ability of a person to compete in a competitive market shall be |
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deemed to be an abuse of market power. The possession of a high |
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market share in a market open to competition may not, of itself, be |
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deemed to be an abuse of market power; however, this sentence shall |
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not affect the application of state and federal antitrust laws. |
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SECTION 5. Subchapter D, Chapter 39, Utilities Code, is |
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amended by adding Section 39.1575 to read as follows: |
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Sec. 39.1575. INVESTIGATORY AUTHORITY OVER RETAIL PRICES. |
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(a) The commission shall investigate whether a retail electric |
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provider is abusing market power or engaging in unfair, misleading, |
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or deceptive practices. Retail electric providers shall cooperate |
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with the commission in any investigation and shall provide |
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information requested. |
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(b) The commission may assess administrative penalties |
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under Section 15.023 for any violation discovered under this |
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section. |
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SECTION 6. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Sections 39.928 and 39.929 to read as follows: |
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Sec. 39.928. COST OF NODAL MARKET IMPLEMENTATION. An |
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independent organization certified under Section 39.151 may not |
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pass through to a retail customer or retail electric provider a cost |
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or charge associated with nodal wholesale market design |
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implementation. |
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Sec. 39.929. PUBLICATION OF NATURAL GAS FUEL AND ELECTRIC |
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ENERGY PRICING INFORMATION. (a) The commission shall publish on |
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the Internet websites http://www.puc.state.tx.us and |
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http://www.powertochoose.org charts or provide a link that |
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compares the prices of: |
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(1) natural gas; |
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(2) real-time or balancing electric energy; and |
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(3) retail electricity. |
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(b) The commission shall provide that the charts be updated |
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at least once each business day that the commission's offices are |
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open. |
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SECTION 7. The Public Utility Commission of Texas shall |
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adopt rules to implement the changes in law made by this Act as |
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quickly as practicable. |
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SECTION 8. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |