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A BILL TO BE ENTITLED
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AN ACT
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relating to benefits and protections for certain residential |
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electric customers. |
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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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adding Subsections (i)-(l) to read as follows: |
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(i) A retail electric provider, power generation company, |
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aggregator, or other entity that provides retail electric service |
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shall waive any deposit requirement for a residential customer who: |
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(1) is at least 62 years of age; or |
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(2) has a payment history for electric service in this |
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state that includes not more than one late payment in the preceding |
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12 months. |
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(j) During the period beginning July 1 and ending September |
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30 of each year, a retail electric provider, power generation |
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company, aggregator, or other entity that provides retail electric |
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service may not disconnect service to a residential customer who |
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requests a deferred payment plan and who: |
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(1) is a low-income electric customer, as defined by |
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Section 39.903(l); or |
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(2) is a person or resides with a person who, if |
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electric service is disconnected, is likely to become seriously ill |
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or become more seriously ill. |
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(k) A retail electric provider, power generation company, |
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aggregator, or other entity that provides retail electric service |
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shall offer to a residential customer described by Subsection |
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(j)(1) who requests a deferred payment plan a payment plan that |
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allows the customer to avoid disconnection of service during the |
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period described by Subsection (j) if: |
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(1) the customer pays at least 25 percent of the |
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current month's service charges; and |
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(2) the customer agrees to pay remaining balances in |
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equal installments over the next five billing cycles. |
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(l) A retail electric provider, power generation company, |
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aggregator, or other entity that provides retail electric service |
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shall offer to a residential customer described by Subsection |
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(j)(1) and is at least 62 years of age or by Subsection (j)(2) a |
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deferred payment plan that allows the customer to avoid |
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disconnection of service during the period described by Subsection |
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(j) without any payment of the current month's service charges |
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until after September 30 if the customer agrees to pay: |
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(1) 25 percent of the deferred charges when the first |
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bill issued after September 30 is due; and |
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(2) the remaining balances in equal installments over |
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the next five billing cycles after the bill issued after September |
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30. |
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SECTION 2. Sections 39.903(a), (b), (d), (e), and (h), |
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Utilities Code, are amended to read as follows: |
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(a) The commission shall adopt and enforce rules requiring |
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electric utilities to establish a system benefit fund as a trust |
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fund outside of the state treasury to be used [is an account in the
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general revenue fund. Money in the account may be appropriated] |
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only for the purposes provided by this section [or other law]. The |
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commission shall provide for the fund to be held by a financial |
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institution eligible to be a depository for state funds under |
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Chapter 404, Government Code. Interest earned on the [system
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benefit] fund shall be credited to the fund. [Section 403.095,
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Government Code, does not apply to the system benefit fund.] |
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(b) The system benefit fund is financed by a nonbypassable |
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fee set by the commission in an amount not to exceed 65 cents per |
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megawatt hour and[. The system benefit fund fee is] allocated to |
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customers based on the amount of kilowatt hours used. An electric |
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utility shall remit the fees to the fund in accordance with |
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procedures approved by the commission. |
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(d) The commission shall annually review and approve system |
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benefit fund accounts, projected revenue requirements, and |
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proposed nonbypassable fees. The commission by rule shall adopt |
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review procedures, including a method for administrative review, as |
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the commission determines is necessary to ensure that the fund is |
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funded and that disbursements from the fund are properly made. The |
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commission may provide for the fund to be operated by a contractor. |
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The commission may require an electric utility or retail electric |
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provider to provide information as necessary to assess |
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contributions to and disbursements from the fund, and that |
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information is not subject to disclosure under Chapter 552, |
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Government Code. The commission shall provide for disbursements |
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from the fund to be made promptly and efficiently so that an |
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electric utility or retail electric provider does not experience an |
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unnecessary cash-flow problem as a result of administrative delay. |
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[The commission shall report to the electric utility restructuring
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legislative oversight committee if the system benefit fund fee is
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insufficient to fund the purposes set forth in Subsection (e) to the
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extent required by this section.] |
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(e) Money in the system benefit fund may be used |
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[appropriated to provide funding] solely for the following |
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[regulatory] purposes, in the following order of priority: |
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(1) programs to: |
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(A) assist low-income electric customers by |
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providing the 10 percent reduced rate prescribed by Subsection (h); |
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and |
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(B) provide one-time bill payment assistance to |
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electric customers who are or who have in their households one or |
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more seriously ill or disabled low-income persons and who have been |
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threatened with disconnection for nonpayment; |
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(2) customer education programs, administrative |
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expenses incurred by the commission in implementing and |
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administering this chapter, and expenses incurred by the office |
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under this chapter; |
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(3) programs to assist low-income electric customers |
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by providing the targeted energy efficiency programs described by |
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Subsection (f)(2); |
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(4) programs to assist low-income electric customers |
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by providing the 20 percent reduced rate prescribed by Subsection |
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(h); and |
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(5) reimbursement to the commission and the Health and |
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Human Services Commission for expenses incurred in the |
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implementation and administration of an integrated eligibility |
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process created under Section 17.007 for customer service discounts |
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relating to retail electric service, including outreach expenses |
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the commission determines are reasonable and necessary. |
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(h) The commission shall adopt rules for a retail electric |
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provider to determine a reduced rate for eligible customers to be |
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discounted off the standard retail service package as approved by |
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the commission under Section 39.106, or the price to beat |
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established by Section 39.202, whichever is lower. Municipally |
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owned utilities and electric cooperatives shall establish a reduced |
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rate for eligible customers to be discounted off the standard |
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retail service package established under Section 40.053 or 41.053, |
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as appropriate. The reduced rate for a retail electric provider |
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shall result in a total charge that is at least 10 percent and, if |
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sufficient money in the system benefit fund is available, up to 20 |
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percent, lower than the amount the customer would otherwise be |
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charged. To the extent the system benefit fund is insufficient to |
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fund the initial 10 percent rate reduction, the commission may |
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increase the fee to an amount not more than 65 cents per megawatt |
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hour, as provided by Subsection (b). If the fee is set at 65 cents |
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per megawatt hour and [or if] the commission determines that money |
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in the fund is [appropriations are] insufficient to fund the 10 |
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percent rate reduction, the commission may reduce the rate |
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reduction to less than 10 percent. For a municipally owned utility |
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or electric cooperative, the reduced rate shall be equal to an |
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amount that can be fully funded by that portion of the nonbypassable |
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fee proceeds paid by the municipally owned utility or electric |
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cooperative that is allocated to the utility or cooperative by the |
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commission under Subsection (e) for programs for low-income |
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customers of the utility or cooperative. The reduced rate for |
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municipally owned utilities and electric cooperatives under this |
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section is in addition to any rate reduction that may result from |
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local programs for low-income customers of the municipally owned |
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utilities or electric cooperatives. |
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SECTION 3. The Public Utility Commission of Texas shall |
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adopt rules to implement Sections 39.101(j)-(l), as added by this |
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Act, as quickly as practicable so that low-income electric |
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customers and elderly or vulnerable electric customers are provided |
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protections prescribed by those sections before September 30, 2009. |
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SECTION 4. The Public Utility Commission of Texas shall |
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adopt rules under Section 39.903, Utilities Code, as amended by |
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this Act, as quickly as practicable. Fees for the system benefit |
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fund collected under Section 39.903, Utilities Code, before the |
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effective date of this Act shall be remitted to the comptroller of |
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public accounts for deposit in the general revenue fund. Fees for |
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the system benefit fund collected under Section 39.903, Utilities |
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Code, after the effective date of this Act shall be remitted to the |
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Public Utility Commission of Texas not later than 31 days after the |
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fees are collected until the commission adopts rules governing the |
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remittance of the fees to the trust fund established under that |
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section, as amended by this Act. The Public Utility Commission of |
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Texas shall hold fees remitted to it under this Act in trust for the |
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benefit of the system benefit fund until that fund is established as |
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provided by this Act and shall transfer those fees to the fund on |
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the date the fund is established. |
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SECTION 5. This Act takes effect September 1, 2009. |