By: Hernandez, et al. (Senate Sponsor - Hancock) H.B. No. 16
         (In the Senate - Received from the House March 31, 2021;
  April 8, 2021, read first time and referred to Committee on
  Business & Commerce; April 23, 2021, reported adversely, with
  favorable Committee Substitute by the following vote:  Yeas 8,
  Nays 0; April 23, 2021, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 16 By:  Hancock
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the regulation of certain retail electric products.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 39, Utilities Code, is
  amended by adding Section 39.110 to read as follows:
         Sec. 39.110.  WHOLESALE INDEXED PRODUCTS PROHIBITED. (a)
  In this section, "wholesale indexed product" means a retail
  electric product in which the price a customer pays for electricity
  includes a direct pass-through of real-time settlement point prices
  determined by the independent organization certified under Section
  39.151 for the ERCOT power region.
         (b)  An aggregator, a broker, or a retail electric provider
  may not offer a wholesale indexed product to a residential or small
  commercial customer.
         (c)  An aggregator, a broker, or a retail electric provider
  may enroll a customer other than a residential and small commercial
  customer in a wholesale indexed product only if the provider,
  aggregator, or broker obtains before the customer's enrollment an
  acknowledgment signed by the customer that the customer accepts the
  potential price risks associated with a wholesale indexed product.
         (d)  An acknowledgment required by Subsection (c) must
  include the following statement, in clear, boldfaced text:
         "I understand that the volatility and fluctuation of
  wholesale energy pricing may cause my energy bill to be
  multiple times higher in a month in which wholesale
  energy prices are high. I understand that I will be
  responsible for charges caused by fluctuations in
  wholesale energy prices."
         (e)  An acknowledgment required by Subsection (c) may be
  included as an addendum to a contract.
         (f)  A retail electric provider that provides a wholesale
  indexed product to a customer must keep on file the acknowledgment
  required by Subsection (c) for each customer while the customer is
  enrolled with the retail electric provider in the wholesale indexed
  product.
         SECTION 2.  Section 39.112, Utilities Code, is amended to
  read as follows:
         Sec. 39.112.  NOTICE OF EXPIRATION AND PRICE CHANGE. (a) In
  this section, "fixed rate product" means a retail electric product
  with a term of at least three months for which the price for each
  billing period, including recurring charges, does not change
  throughout the term of the contract, except that the price may vary
  to reflect actual changes in transmission and distribution utility
  charges, changes to ERCOT or Texas Regional Entity administrative
  fees charged to loads, or changes to federal, state, or local laws
  that result in new or modified fees or costs that are not within the
  retail electric provider's control.
         (b)  A retail electric provider shall provide a residential
  customer who has a fixed rate product with at least three [one]
  written notices [notice] of the date the fixed rate product will
  expire. The notices [notice] must be provided during the last third
  of the contract period and in intervals that allow for, as
  practicable, even distribution of the notices throughout the last
  third of the contract period. The final notice for a contract with
  a period of more than four months must be provided at least 30 days
  before the date that the contract will expire. The final notice for
  a contract with a period of less than four months must be provided
  at least 15 days before the date that the contract will expire.
         (c)  The retail electric provider must provide each notice
  required by Subsection (b) to the customer by mail at the customer's
  billing address, unless the customer has opted to receive
  communications electronically from the retail electric provider.
         (d)  If the retail electric provider has access to customer
  contact information that allows the provider to send the customer a
  text message or call the customer, and the customer has agreed to
  receive notices by text message or call, the retail electric
  provider may provide additional notice to the customer by text
  message or call of the date the fixed rate product will expire.
  Notice provided by text message or call does not constitute notice
  under Subsection (b).
         (e)  A notice required by Subsection (b) must:
               (1)  for a notice provided by mail, [be sent to the
  customer's billing address by mail at least 30, but not more than
  60, days preceding the date the contract will expire;
               [(2)  be sent to the customer's e-mail address, if
  available to the provider and if the customer has agreed to receive
  notices electronically, at least 30, but not more than 60, days
  preceding the date the contract will expire;
               [(3)]  include in a manner visible from [on] the
  outside of the envelope in which the notice is sent, a statement
  that reads: "Contract Expiration Notice. See Enclosed.";
               (2) [(4)]  if included with a customer's bill, be
  printed on a separate page or included as a separate document; [and]
               (3) [(5)]  include a description of any fees or charges
  associated with the early termination of the customer's fixed rate
  product; and
               (4)  describe any renewal offers the retail electric
  provider chooses to make available to the customer and identify
  methods by which the customer may obtain the contract documents for
  each of the offered products.
         (f)  The final notice provided under Subsection (b) must
  include the pricing terms for the default renewal product required
  by Subsection (h).
         (g) [(c)]  A retail electric provider shall include on each
  billing statement, in boldfaced and underlined text, the end date
  of the fixed rate product.
         (h)  Except as provided by Subsection (j), if a customer does
  not select another retail electric product before the expiration of
  the customer's contract term with a retail electric provider, the
  provider shall automatically serve the customer through a default
  renewal product that the customer may cancel at any time without a
  fee. The default renewal product must be:
               (1)  a month-to-month product in which the price the
  customer pays for electricity may vary between billing cycles; and
               (2)  based on clear terms designed to be easily
  understood by the average customer.
         (i)  A retail electric provider shall include in each
  contract for service the terms of the default renewal product that
  the customer will automatically be enrolled in under Subsection (h)
  if the customer does not select another retail electric product
  before the expiration of the contract term. 
         (j)  If a retail electric provider does not provide notice of
  the expiration of a customer's contract with the provider in
  accordance with this section and the customer does not select
  another retail electric product before the expiration of the
  customer's contract term with the provider, the retail electric
  provider must continue to serve the customer under the pricing
  terms of the fixed rate product contract until:
               (1)  the provider provides notice of the expiration of
  the contract in accordance with this section; or
               (2)  the customer selects another retail electric
  product.
         (k) [(d)]  No provision in this section shall be construed to
  prohibit the commission from adopting rules that would provide a
  greater degree of customer protection.
         SECTION 3.  The changes in law made by this Act apply only to
  an enrollment or re-enrollment of a customer in a retail electric
  product that is executed on or after the effective date of this Act.
  An enrollment or re-enrollment of a customer in a retail electric
  product that is executed before the effective date of this Act is
  governed by the law as it existed immediately before the effective
  date of this Act, and that law is continued in effect for that
  purpose.
         SECTION 4.  This Act takes effect September 1, 2021.
 
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