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A BILL TO BE ENTITLED
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AN ACT
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relating to fixed price contracts for residential retail electric |
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service. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 39, Utilities Code, is |
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amended by adding Section 39.113 to read as follows: |
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Sec. 39.113. FIXED PRICE CONTRACTS. (a) In this section, |
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"fixed price contract" means a residential retail electric service |
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contract for a term of six months or more in which the price for each |
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billing period is stated in the contract and does not change |
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throughout the term of the contract. The term does not include |
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month-to-month service. |
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(b) The term of a fixed price contract must be conspicuously |
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disclosed on the contract. The start and end dates of a fixed price |
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contract must be available to a customer who is a party to the |
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contract, on the request of the customer. The start and end dates |
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may be estimated if the retail electric provider is unable to |
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determine the dates. If a start date for a fixed price contract is |
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known, the end date may be estimated based on the transmission and |
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distribution utility's normal meter reading schedule for the |
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customer. |
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(c) In addition to any information required under |
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Subsection (b), a retail electric provider shall provide a |
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residential customer who has a fixed price contract with written |
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notification of the date the contract is scheduled to expire. The |
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notice must be sent to the customer's billing address by mail |
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postmarked not less than 60 days before the date the contract is |
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scheduled to expire. This subsection does not preclude a retail |
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electric provider from offering a new contract to a customer at any |
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time during the term of the customer's contract. |
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(d) A notice under Subsection (c) must: |
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(1) be provided as a separate document; |
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(2) include on the outside of the envelope the |
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statement "Contract Expiration Notice"; |
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(3) if the customer has agreed to receive official |
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documents by electronic mail, state in the subject line of the |
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electronic mail "Contract Expiration Notice"; |
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(4) include a description of the retail electric |
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provider's default service plan; |
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(5) include the terms of service for the retail |
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electric provider's default service plan, unless the terms of |
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service applicable to the default service plan also apply to the |
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customer's existing service under the fixed price contract; |
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(6) include a statement that if the customer takes no |
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action, service to the customer will continue according to the |
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default service plan; and |
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(7) include a statement that the default service plan |
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is provided on a month-to-month basis and may be canceled by the |
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customer at any time with no fee. |
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SECTION 2. The change in law made by this Act applies only |
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to a contract for retail electric service entered into or renewed on |
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or after the effective date of this Act. A contract for retail |
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electric service entered into or renewed before the effective date |
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of this Act is governed by the law as it existed immediately before |
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the effective date of this Act, and that law is continued in effect |
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for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |