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A BILL TO BE ENTITLED
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AN ACT
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relating to providers of last resort. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.106, Utilities Code, is amended by |
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amending Subsections (b), (c), and (e), and adding Subsections |
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(b-1), (b-2), (b-3), (c-1), (c-2), (c-3), (e-1), (e-2), (e-3), |
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(e-4), (e-5), (e-6), and (h) to read as follows: |
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(b) A provider of last resort shall offer a standard retail |
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service package for each class of customers designated by the |
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commission. A standard retail service package is limited to: |
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(1) basic electric service; |
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(2) customer access to a call center for inquiries |
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regarding the service; |
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(3) standard retail billing performed by the provider |
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or an agent; and |
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(4) benefits for low-income customers provided under |
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Section 39.903 [at a fixed, nondiscountable rate approved by the
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commission]. |
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(b-1) A provider of last resort shall provide billing and |
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collection services for a retail electric provider that has |
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defaulted on payments to the servicer of a transition bond or |
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payments to a transmission and distribution utility. |
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(b-2) A provider of last resort shall include in each |
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billing statement sent to a residential customer: |
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(1) a notice that informs the customer that other |
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competitive products or services may be available from the provider |
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or from another competitive retail electric provider; |
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(2) contact information for the provider; and |
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(3) a message from the commission that: |
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(A) is in the form of a bill insert with "A |
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Message from the Public Utility Commission" as a header; |
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(B) addresses the reason the customer has been |
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transitioned to a provider of last resort; |
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(C) explains the continuity of service purpose |
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for the transition and the temporary nature of the service as |
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emergency service; and |
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(D) directs the customer to information |
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available on the www.powertochoose.org Internet website or at a |
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toll-free number established for that purpose. |
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(b-3) A provider of last resort shall: |
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(1) charge the provider's customers a market-based, |
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month-to-month rate identical to the rate charged to the provider's |
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new and existing customers in the same customer class; and |
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(2) post the provider's standard retail service |
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package on the commission's Internet website or provide a |
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description of the service and rate plan to the commission and |
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ERCOT. |
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(c) A provider of last resort shall provide the standard |
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retail service package to: |
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(1) any requesting customer in the territory for which |
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it is the provider of last resort; and |
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(2) each customer assigned to the provider of last |
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resort during a mass transition of customers. |
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(c-1) A provider of last resort may charge customers |
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assigned to the provider in a mass transition of customers a rate |
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that is lower than the emergency rate as determined on the date of |
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the transition, if the lower rate is applied to all transitioned |
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customers. A provider of last resort may market to customers |
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assigned to the provider pursuant to a mass transition on a |
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nondiscriminatory basis the same competitive products the provider |
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offers to the provider's similarly situated nontransitioned |
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customers. Marketing made to a transitioned customer under this |
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subsection must inform the customer that the customer has the right |
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to switch the customer's service to a different retail electric |
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provider, or accept from the provider of last resort a competitive |
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product other than the standard retail service package, if the |
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provider offers such a competitive product. A customer may agree to |
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a long-term contract for nonemergency service with the provider of |
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last resort. A customer who has enrolled in a nonemergency product |
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or service with a provider of last resort is not subsequently |
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considered a transitioned customer. |
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(c-2) When a customer is transitioned to emergency service, |
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ERCOT, the provider of last resort, and the transitioning retail |
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electric provider shall notify the customer. The notice must be |
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given not later than the second day after the date ERCOT and the |
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transitioning retail electric provider become aware that the |
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customer will be transitioned and customer contact information is |
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available. If the customer cannot be reached during that time, |
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notice must be given as soon as practicable. ERCOT shall notify |
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transitioned customers by all reasonable means, including a |
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postcard containing the official commission seal with language and |
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format approved by the commission, an automated phone call, or an |
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automated electronic mail. ERCOT shall study the effectiveness of |
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each method of notification and report the results to the |
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commission. The notice must include: |
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(1) the reason for the transition; |
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(2) a telephone number for the transitioning retail |
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electric provider; |
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(3) a statement informing the customer that the |
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customer will receive a separate notice from the provider of last |
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resort that will disclose the date the provider will begin |
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providing service to the customer; and |
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(4) if applicable: |
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(A) the customer's deposit plus accrued |
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interest; or |
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(B) a statement that the deposit will be returned |
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within seven days of the transition. |
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(c-3) If a customer does not elect to change service from |
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the emergency service of a provider of last resort to a competitive |
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product or service, the provider may switch the customer's service |
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to the provider's regularly offered product. The provider shall |
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send the customer a notice that: |
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(1) describes the rate, terms, and conditions of the |
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service to which the customer will be switched; |
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(2) informs the customer that other competitive |
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products or services may be available from the provider or from a |
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retail electric provider affiliated with the provider; |
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(3) specifies the deposit requirements of the service |
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to which the customer will be switched; |
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(4) states that other providers may also require a |
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deposit; and |
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(5) states where the customer may find additional |
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information about the offerings of other providers. |
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(e) Not later than July 10 of each even-numbered year, each |
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retail electric provider shall provide to the commission |
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information necessary to establish the retail electric provider's |
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eligibility to serve as a provider of last resort for the biennium |
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beginning January 1 of the following year. A determination |
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regarding eligibility is not considered confidential information. |
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Information supplied under this subsection must include, for each |
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service area served by the retail electric provider: |
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(1) information on the classes of customers served by |
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the retail electric provider; |
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(2) the retail electric provider's retail sales in |
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megawatt hours for each transitional customer class for the |
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12-month period ending March 31 of the current year according to |
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information provided by ERCOT; |
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(3) the retail electric provider's retail sales in |
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megawatt hours for each customer class for the 12-month period |
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ending March 31 of the current year according to information |
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provided by ERCOT; and |
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(4) information regarding the retail electric |
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provider's technical and financial ability to provide service to |
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additional customers in the event of a mass transition of customers |
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to the retail electric provider [The commission shall determine the
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procedures and criteria, which may include the solicitation of
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bids, for designating a provider or providers of last resort. The
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commission may redesignate the provider of last resort according to
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a schedule it considers appropriate]. |
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(e-1) Based on the information provided to the commission |
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under Subsection (e), the commission shall designate each retail |
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electric provider that is eligible to be a provider of last resort, |
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and may require any retail electric provider that is determined to |
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be eligible to serve as a provider of last resort in an area of this |
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state where customer choice is in effect. The commission may not |
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require a retail electric provider to serve as a provider of last |
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resort in the service area of a municipally owned utility or |
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electric cooperative unless the electric cooperative has delegated |
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its emergency service area authority to the commission. On a |
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request by an eligible retail electric provider and a showing that |
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the retail electric provider will not be able to maintain its |
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financial integrity if it is required to serve customers under this |
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section, the commission may relieve the retail electric provider of |
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its obligations under this section. |
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(e-2) A retail electric provider may volunteer to be a |
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provider of last resort by submitting a request to the commission |
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with the information required by Subsection (e). A request under |
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this subsection must: |
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(1) be submitted to the commission not earlier than |
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July 10, and not later than July 31 of each even-numbered year; |
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(2) include the name of the retail electric provider; |
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(3) include the name and contact information of a |
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person to serve as the retail electric provider's point of contact; |
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(4) state which customer classes the retail electric |
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provider is willing to serve within each emergency service area; |
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(5) state, by customer class, the number of customers |
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the retail electric provider is willing to serve during a mass |
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transition; |
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(6) state the maximum load that the retail electric |
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provider is willing to serve for customers who at the time of the |
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transition to emergency service had a peak demand in the previous |
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12-month period of at least one megawatt; and |
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(7) include information regarding the retail electric |
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provider's technical and financial condition sufficient to |
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demonstrate that the retail electric provider is capable of serving |
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a mass transition of customers without experiencing technical or |
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financial distress. |
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(e-3) A retail electric provider is eligible to be a |
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voluntary provider of last resort if it meets the requirements of |
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Subsections (e) and (e-2). The commission shall publish a list of |
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all eligible voluntary providers of last resort and post the names |
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on the commission's Internet website. A voluntary provider of last |
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resort may file a request with the commission at any time to be |
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removed from the list or to modify the number of customers or load |
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the provider is willing to serve. |
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(e-4) If a voluntary provider of last resort requests under |
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Subsection (e-3) to increase the number of customers or load the |
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provider is willing to serve, the provider shall provide |
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documentation to demonstrate that it is capable of serving the |
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additional customers or load. If the commission staff determines |
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that the provider is not capable of serving the additional |
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customers or load, the provider, not later than the fifth business |
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day after the date the determination is made, may file additional |
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documentation regarding the provider's technical and financial |
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ability to serve the additional customers or load. The commission |
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staff shall reassess the provider's application and notify the |
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provider of the status of the provider's request not later than the |
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10th business day after the date the additional documentation is |
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received. A review by the commission staff is not a contested case. |
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The provider may appeal the staff's decision by requesting a |
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contested case proceeding. |
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(e-5) If a voluntary provider of last resort requests under |
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Subsection (e-3) to decrease the number of customers or load it is |
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willing to serve, the commission shall grant the provider's request |
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not later than the fifth business day after the date the request is |
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submitted. The provider shall continue to serve customers acquired |
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due to any mass transition occurring before that date. |
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(e-6) If the commission staff determines that a retail |
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electric provider is not eligible to be a voluntary provider of last |
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resort, the retail electric provider, not later than the fifth |
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business day after the date the determination is made, may file |
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additional documentation regarding the retail electric provider's |
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technical and financial ability to be a provider of last resort. |
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The commission staff shall reassess the retail electric provider's |
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application and notify the retail electric provider of any change |
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in eligibility status not later than the 10th business day after the |
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date the additional documentation is received. A review by |
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commission staff is not a contested case. The provider may appeal |
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the staff's decision by requesting a contested case proceeding. |
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(h) When transferring customers to a provider of last |
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resort, ERCOT shall first transfer customers to retail electric |
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providers that have volunteered to serve additional customers or |
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load under Subsection (e-2), but may not transfer a number of |
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customers or amount of load that exceeds the number or amount each |
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provider has offered to serve. |
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SECTION 2. Sections 39.106(f) and (g), Utilities Code, are |
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repealed. |
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SECTION 3. This Act takes effect September 1, 2009. |