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AN ACT
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relating to the regulation of certain retail electric products. |
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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 39.110 to read as follows: |
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Sec. 39.110. WHOLESALE INDEXED PRODUCTS PROHIBITED. (a) |
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In this section, "wholesale indexed product" means a retail |
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electric product in which the price a customer pays for electricity |
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includes a direct pass-through of real-time settlement point prices |
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determined by the independent organization certified under Section |
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39.151 for the ERCOT power region. |
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(b) An aggregator, a broker, or a retail electric provider |
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may not offer a wholesale indexed product to a residential or small |
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commercial customer. |
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(c) An aggregator, a broker, or a retail electric provider |
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may enroll a customer other than a residential and small commercial |
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customer in a wholesale indexed product only if the provider, |
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aggregator, or broker obtains before the customer's enrollment an |
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acknowledgment signed by the customer that the customer accepts the |
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potential price risks associated with a wholesale indexed product. |
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(d) An acknowledgment required by Subsection (c) must |
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include the following statement, in clear, boldfaced text: |
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"I understand that the volatility and fluctuation of |
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wholesale energy pricing may cause my energy bill to be |
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multiple times higher in a month in which wholesale |
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energy prices are high. I understand that I will be |
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responsible for charges caused by fluctuations in |
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wholesale energy prices." |
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(e) An acknowledgment required by Subsection (c) may be |
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included as an addendum to a contract. |
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(f) A retail electric provider that provides a wholesale |
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indexed product to a customer must keep on file the acknowledgment |
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required by Subsection (c) for each customer while the customer is |
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enrolled with the retail electric provider in the wholesale indexed |
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product. |
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SECTION 2. Section 39.112, Utilities Code, is amended to |
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read as follows: |
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Sec. 39.112. NOTICE OF EXPIRATION AND PRICE CHANGE. (a) In |
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this section, "fixed rate product" means a retail electric product |
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with a term of at least three months for which the price for each |
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billing period, including recurring charges, does not change |
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throughout the term of the contract, except that the price may vary |
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to reflect actual changes in transmission and distribution utility |
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charges, changes to ERCOT or Texas Regional Entity administrative |
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fees charged to loads, or changes to federal, state, or local laws |
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that result in new or modified fees or costs that are not within the |
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retail electric provider's control. |
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(b) A retail electric provider shall provide a residential |
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customer who has a fixed rate product with at least three [one] |
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written notices [notice] of the date the fixed rate product will |
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expire. The notices [notice] must be provided during the last third |
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of the contract period and in intervals that allow for, as |
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practicable, even distribution of the notices throughout the last |
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third of the contract period. The final notice for a contract with |
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a period of more than four months must be provided at least 30 days |
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before the date that the contract will expire. The final notice for |
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a contract with a period of less than four months must be provided |
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at least 15 days before the date that the contract will expire. |
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(c) The retail electric provider must provide each notice |
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required by Subsection (b) to the customer by mail at the customer's |
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billing address, unless the customer has opted to receive |
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communications electronically from the retail electric provider. |
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(d) If the retail electric provider has access to customer |
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contact information that allows the provider to send the customer a |
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text message or call the customer, and the customer has agreed to |
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receive notices by text message or call, the retail electric |
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provider may provide additional notice to the customer by text |
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message or call of the date the fixed rate product will expire. |
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Notice provided by text message or call does not constitute notice |
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under Subsection (b). |
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(e) A notice required by Subsection (b) must: |
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(1) for a notice provided by mail, [be sent to the |
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customer's billing address by mail at least 30, but not more than |
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60, days preceding the date the contract will expire; |
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[(2) be sent to the customer's e-mail address, if |
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available to the provider and if the customer has agreed to receive |
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notices electronically, at least 30, but not more than 60, days |
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preceding the date the contract will expire; |
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[(3)] include in a manner visible from [on] the |
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outside of the envelope in which the notice is sent, a statement |
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that reads: "Contract Expiration Notice. See Enclosed."; |
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(2) [(4)] if included with a customer's bill, be |
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printed on a separate page or included as a separate document; [and] |
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(3) [(5)] include a description of any fees or charges |
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associated with the early termination of the customer's fixed rate |
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product; and |
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(4) describe any renewal offers the retail electric |
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provider chooses to make available to the customer and identify |
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methods by which the customer may obtain the contract documents for |
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each of the offered products. |
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(f) The final notice provided under Subsection (b) must |
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include the pricing terms for the default renewal product required |
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by Subsection (h). |
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(g) [(c)] A retail electric provider shall include on each |
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billing statement, in boldfaced and underlined text, the end date |
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of the fixed rate product. |
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(h) Except as provided by Subsection (j), if a customer does |
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not select another retail electric product before the expiration of |
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the customer's contract term with a retail electric provider, the |
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provider shall automatically serve the customer through a default |
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renewal product that the customer may cancel at any time without a |
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fee. The default renewal product must be: |
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(1) a month-to-month product in which the price the |
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customer pays for electricity may vary between billing cycles; and |
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(2) based on clear terms designed to be easily |
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understood by the average customer. |
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(i) A retail electric provider shall include in each |
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contract for service the terms of the default renewal product that |
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the customer will automatically be enrolled in under Subsection (h) |
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if the customer does not select another retail electric product |
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before the expiration of the contract term. |
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(j) If a retail electric provider does not provide notice of |
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the expiration of a customer's contract with the provider in |
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accordance with this section and the customer does not select |
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another retail electric product before the expiration of the |
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customer's contract term with the provider, the retail electric |
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provider must continue to serve the customer under the pricing |
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terms of the fixed rate product contract until: |
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(1) the provider provides notice of the expiration of |
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the contract in accordance with this section; or |
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(2) the customer selects another retail electric |
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product. |
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(k) [(d)] No provision in this section shall be construed to |
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prohibit the commission from adopting rules that would provide a |
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greater degree of customer protection. |
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SECTION 3. The changes in law made by this Act apply only to |
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an enrollment or re-enrollment of a customer in a retail electric |
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product that is executed on or after the effective date of this Act. |
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An enrollment or re-enrollment of a customer in a retail electric |
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product that is executed before the effective date of this Act is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect September 1, 2021. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 16 was passed by the House on March |
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31, 2021, by the following vote: Yeas 116, Nays 31, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 16 on May 12, 2021, by the following vote: Yeas 123, Nays 24, 1 |
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present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 16 was passed by the Senate, with |
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amendments, on April 29, 2021, by the following vote: Yeas 29, |
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Nays 2. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |