By: Hinojosa, Davis S.B. No. 265

(In the Senate - Filed November 12, 2008; February 11, 2009, read first time and referred to Committee on Business and Commerce; April 17, 2009, reported adversely, with favorable Committee Substitute by the following vote: Yeas 6, Nays 0; April 17, 2009, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 265 By: Fraser

A BILL TO BE ENTITLED

AN ACT

relating to benefits and protections for certain residential electric 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), (k), (l), (m), (n), and (o) to read as follows:

(i) A retail electric provider, power generation company, aggregator, or other entity that provides retail electric service shall waive any initial deposit requirement for a residential customer who is not delinquent in payment of any electric service account with that provider and:

(1) is at least 65 years of age; or

(2) has a payment history for electric service in this state that includes not more than one late payment in the preceding 12 months.

(j) During the period beginning July 1 and ending September 30 of each year, a retail electric provider, power generation company, aggregator, or other entity that provides retail electric service may not disconnect service or authorize the disconnection of service to a residential customer who requests and complies with the terms of a deferred payment plan and who demonstrates to the provider that the customer is a low-income electric customer, as defined by Section 39.903(l).

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

(1) is designated in accordance with commission rules as a critical care residential customer for whom an interruption or suspension of electric service will create a dangerous or life-threatening condition; or

(2) requests a deferred payment plan and demonstrates to the provider that the customer qualifies under commission rules for designation as a critical care residential customer for whom an interruption or suspension of electric service will create a dangerous or life-threatening condition.

(l) A retail electric provider, power generation company, aggregator, or other entity that provides retail electric service shall provide to each residential customer designated as a critical care residential customer and each residential customer on a reduced rate program described by Section 39.903(h) an annual notice informing the customer of the protections available under Subsections (j) and (k). The notice must be provided contemporaneously with the first invoice issued to the customer after June 30 of each year. The notice may be printed on the invoice, included as an insert provided with the invoice, or provided separately in a way reasonably calculated to inform the customer of the protections available under Subsections (j) and (k).

(m) A retail electric provider, power generation company, aggregator, or other entity that provides retail electric service shall offer to a residential customer described by Subsection (j) who requests a deferred payment plan a payment plan that allows the customer to avoid disconnection of service during the period described by Subsection (j) if the customer:

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

(2) agrees to pay remaining balances in equal installments over the next five billing cycles, unless the customer agrees to a lesser number of installments; and

(3) does not owe an outstanding balance from an earlier deferred payment plan granted to allow the customer to avoid disconnection of service during a period described by Subsection (j).

(n) A retail electric provider, power generation company, aggregator, or other entity that provides retail electric service, on request by a residential customer described by Subsection (j) who is at least 65 years of age or a residential customer described by Subsection (k)(2), shall offer to the customer a deferred payment plan that allows the customer to avoid disconnection of service during the period described by Subsection (j) or (k) without any payment of the current month's service charges until after September 30 if the customer agrees to pay:

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

(2) the remaining balances in equal installments over the next five billing cycles after the bill issued after September 30, unless the customer agrees to a lesser number of installments.

(o) Subsections (i)-(n) do not apply to metered electric service sold to residential customers on a prepaid basis.

SECTION 2. The Public Utility Commission of Texas shall adopt rules to implement Subsections (i), (j), (k), (l), (m), (n), and (o), Section 39.101, Utilities Code, as added by this Act, as quickly as practicable so that customers are provided protections prescribed by those subsections before September 30, 2009.

SECTION 3. This Act takes effect September 1, 2009.

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