87R18372 BRG-F
 
  By: Schwertner, Menéndez S.B. No. 2194
 
 
 
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)  A retail electric provider may not offer a wholesale
  indexed product to a residential or small commercial customer.
         (c)  A retail electric provider may enroll a customer other
  than a residential and small commercial customer in a wholesale
  indexed product if the provider obtains before the customer's
  enrollment the customer's written and signed acknowledgment that
  the customer accepts the potential price risks associated with a
  wholesale indexed product.
         (d)  An acknowledgment described by Subsection (c) must
  include the following statements, in clear, boldfaced text,
  accompanied by the signature of the customer:
               (1)  "I understand the volatility and fluctuation of
  wholesale energy pricing. I understand that I will be responsible
  for the fluctuations in wholesale energy prices and that my energy
  bill can be multiple times higher in a month with high wholesale
  energy prices.";
               (2)  "I understand that the maximum wholesale energy
  rate in the wholesale energy market is much higher than the average
  wholesale energy rate and that energy prices can remain at the
  maximum wholesale energy rate for many hours."; and
               (3)  "I acknowledge that management of energy use
  during periods of high energy prices times is critical to
  maintaining financial solvency.".
         (e)  A retail electric provider must keep on file an
  acknowledgment described by Subsection (c) for each customer while
  the customer is enrolled with the provider in a 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:
               (1)  not less than 90 days and not more than 119 days
  before the date the contract will expire, for the first notice;
               (2)  not less than 60 days and not more than 89 days
  before the date that the contract will expire, for the second
  notice; and
               (3)  not less than 30 days and not more than 59 days
  before the date that the contract will expire, for the third notice.
         (c)  Each notice under Subsection (b) must be provided to the
  customer:
               (1)  by mail at the customer's billing address;
               (2)  by e-mail, if the customer's e-mail address is
  available to the provider and if the customer has agreed to receive
  notices by e-mail; and
               (3)  by text message, if the customer's text messaging
  contact information is available to the provider and if the
  customer has agreed to receive notices by text message.
         (d)  A notice provided under Subsection (b) must:
               (1)  [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)] for a notice provided by mail, 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; 
               (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 those products; and
               (5)  include the pricing terms for the default renewal
  product required under Subsection (f).
         (e) [(c)]  A retail electric provider shall include on each
  billing statement, in boldfaced and underlined text, the end date
  of the fixed rate product.
         (f)  Except as provided by Subsection (h), 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. The default renewal product may be: 
               (1)  a fixed rate product; or
               (2)  a month-to-month product in which the price the
  customer pays for electricity may vary between billing cycles.
         (g)  A default renewal product that is a month-to-month
  product must be based on clear and easily understood terms
  described in the customer's most recent contract with the retail
  electric provider.
         (h)  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 customer's fixed
  rate product remains in effect until:
               (1)  the provider provides notice of the expiration of
  the contract in accordance with this section and enrolls the
  customer in a default renewal product; or
               (2)  the customer selects another retail electric
  product.
         (i) [(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.