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A BILL TO BE ENTITLED
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AN ACT
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relating to competition and customer choice in the retail electric |
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power market; providing an administrative penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 17.157(a) and (b), Utilities Code, are |
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amended to read as follows: |
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(a) The commission may investigate or resolve disputes |
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between a residential retail customer and a billing utility, |
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service provider, telecommunications utility, retail electric |
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provider, or electric utility. |
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(b) In exercising its authority under Subsection (a), the |
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commission may: |
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(1) order a billing utility, service provider, retail |
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electric provider, or electric utility to produce information or |
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records; |
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(2) require that all contracts, bills, and other |
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communications from a billing utility, service provider, retail |
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electric provider, or electric utility display a working toll-free |
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telephone number that residential customers may call with |
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complaints and inquiries; |
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(3) require a billing utility, service provider, |
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retail electric provider, or electric utility to refund or credit |
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overcharges or unauthorized charges with interest if the billing |
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utility, service provider, retail electric provider, or electric |
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utility has failed to comply with commission rules or a contract |
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with the residential customer; |
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(4) order appropriate relief to ensure that a |
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residential customer's choice of a telecommunications service |
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provider, a retail electric provider, or an electric utility that |
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encompasses a geographic area in which more than one provider has |
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been certificated is honored; |
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(5) require the continuation of service to a |
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residential [or small commercial] customer while a dispute is |
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pending regarding charges the customer has alleged were |
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unauthorized; and |
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(6) investigate an alleged violation. |
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SECTION 2. Section 39.051, Utilities Code, is amended by |
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adding Subsection (h) to read as follows: |
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(h) On or before January 1, 2008, an electric utility and |
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the competitive affiliates of the utility created in accordance |
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with Subsection (b) and owned by a common holding company each |
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shall: |
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(1) have a name and logo that is distinct from the name |
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and logo of each of the other entities owned by the common holding |
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company and distinct from the name and logo of the common holding |
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company; |
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(2) have its board of directors composed exclusively |
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of individuals who are not members of the board of directors of any |
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of the other entities owned by the common holding company and are |
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not members of the board of the common holding company; |
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(3) have a chief executive officer who is the chief |
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executive officer only of that entity; |
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(4) have its headquarters located in a building |
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separate and apart from the building or buildings in which the |
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headquarters of any of the other entities owned by the common |
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holding company is located or in which the headquarters of the |
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common holding company is located; |
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(5) maintain an arm's-length relationship with the |
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other entities owned by the common holding company; |
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(6) enter into transactions with another entity owned |
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by the common holding company only on a commercially reasonable |
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basis and only as approved by a majority of the directors of its |
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governing board of directors; |
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(7) prepare its separate annual financial statement in |
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accordance with generally accepted accounting principles showing |
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its assets and liabilities as separate and distinct from the assets |
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of the other entities owned by the common holding company; and |
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(8) ensure that the commission has complete access to |
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all of the entity's books and records pertaining to transactions |
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between the entity and another entity owned by the common holding |
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company. |
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SECTION 3. Section 39.101, Utilities Code, is amended by |
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adding Subsection (i) to read as follows: |
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(i) A retail electric provider may not state or imply that |
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it can provide a level of reliability of electric service or |
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preferential treatment in the restoration of service following an |
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outage that is better than another provider can provide. A retail |
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electric provider may make claims regarding the provider's customer |
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service reliability. The commission may impose an administrative |
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penalty for a violation of this subsection in accordance with |
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Section 15.024. A violation of this subsection shall be included in |
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the highest class of violations in the classification system |
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established by the commission under Section 15.023. |
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SECTION 4. 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. PROMOTION OF RESIDENTIAL CUSTOMER CHOICE. (a) |
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A reference in this section to "retail electric provider" includes: |
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(1) a successor in interest to the retail electric |
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provider; and |
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(2) a provider that was an affiliate of the retail |
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electric provider on December 31, 2006. |
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(b) The purpose of this section is to promote customer |
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choice for residential customers by imposing a charge on certain |
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retail electric providers to provide an additional incentive for |
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them to compete for residential customers. |
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(c) This section applies only to a retail electric provider |
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with more than 250,000 residential customers in this state that on |
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December 31, 2006, was required to offer service to residential |
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customers at the price to beat in accordance with Section 39.202. |
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This section does not apply to a retail electric provider at any |
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time after the retail electric provider has not been assessed a |
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charge under Subsection (d) for two consecutive years. |
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(d) The commission annually shall impose a charge on a |
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retail electric provider if the gross number of residential |
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customers the provider gained during a calendar year, as measured |
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by move-in and switch transactions processed by the independent |
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organization, in areas where customer choice is available outside |
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the transmission and distribution utility service territory in |
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which it was required to offer the price to beat was less than the |
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following customer target number: |
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(1) for a retail electric provider with one million or |
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more residential customers in this state on December 31, 2006, a |
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gain of 90,000 residential customers; and |
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(2) for a retail electric provider with fewer than one |
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million residential customers in this state on December 31, 2006, a |
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gain of 45,000 residential customers. |
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(e) The annual charge the commission shall impose under |
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Subsection (d) is computed by multiplying the difference between |
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the applicable target number of residential customers gained as |
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provided by Subsection (d)(1) or (2) and the gross number of |
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residential customers that the retail electric provider actually |
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gained during the relevant calendar year by: |
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(1) $100 on December 31, 2007; |
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(2) $200 on December 31, 2008; and |
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(3) $300 on December 31, 2009. |
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(f) Money collected from the charge assessed under this |
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section may be appropriated only for programs devised and directed |
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by the commission as provided by this subsection. If |
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appropriations from the system benefit fund are sufficient to |
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assist low-income electric customers by providing the 10 percent |
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reduced rate prescribed by Section 39.903(h), the money collected |
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from the charges under Subsection (d) may be used only for a |
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residential customer education program under Section 39.903, |
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including the provision of call center services when the commission |
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conducts a customer education program under Section 39.2021(e). If |
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appropriations from the system benefit fund are not sufficient to |
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assist low-income electric customers by providing the 10 percent |
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reduced rate prescribed by Section 39.903(h), the money collected |
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from the charges under Subsection (d) may be appropriated only for |
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the following purposes, in the following order of priority: |
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(1) to assist low-income electric customers by |
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providing the 10 percent reduced rate prescribed by Section |
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39.903(h); and |
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(2) for a residential customer education program under |
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Section 39.903, including the provision of call center services |
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when the commission conducts a customer education program under |
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Section 39.2021(e), using money remaining after the reduced rate |
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prescribed by Section 39.903(h) has been fully implemented. |
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(g) The commission may adopt rules as necessary or |
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appropriate to carry out this section. |
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(h) This section expires March 31, 2010. |
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SECTION 5. Subchapter E, Chapter 39, Utilities Code, is |
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amended by adding Section 39.2021 to read as follows: |
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Sec. 39.2021. ASSISTANCE IN CUSTOMER CHOICE. (a) In this |
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section, "residential customers under a price to beat tariff on |
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December 31, 2006" includes: |
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(1) residential customers served at the price to beat |
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on that date; |
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(2) residential customers who received discounts off |
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of the price to beat on that date in the form of reduced rates, bill |
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credits, or customer appreciation bonuses without affirmatively |
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choosing an electric service plan other than the price to beat; and |
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(3) any other residential customers who as of December |
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31, 2006, had not affirmatively chosen an electric service plan. |
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(b) This section applies only to: |
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(1) a retail electric provider that served residential |
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customers under a price to beat tariff on December 31, 2006; and |
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(2) the residential customers under a price to beat |
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tariff on December 31, 2006, served by the retail electric |
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provider. |
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(c) Until March 1, 2008, a retail electric provider shall |
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assist the provider's residential customers who have not |
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affirmatively chosen an electric service plan in choosing an |
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alternative electric service plan offered by the retail electric |
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provider. |
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(d) After March 1, 2008, a retail electric provider may |
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provide to the provider's residential customers who have not |
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affirmatively chosen an electric service plan offered by the |
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provider a ballot that describes the alternative electric service |
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plans the provider offers to residential customers and that allows |
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the customer to affirmatively choose a particular alternative |
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electric service plan. If a residential customer does not |
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affirmatively choose an alternative electric service plan under the |
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balloting process, the provider shall, after giving the customer at |
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least 45 days' notice, modify the terms of service for the customer |
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to conform to the terms of service for an alternative electric |
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service plan offered to residential customers that does not include |
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a termination fee. The notice may be included with the ballot |
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provided under this subsection. |
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(e) If a retail electric provider did not provide ballots to |
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its residential customers under Subsection (d) or if the provider |
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paid a charge imposed under Section 39.110(d) for the calendar year |
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2007, on or before May 1, 2008, the provider shall release to the |
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commission the names and addresses of its residential customers who |
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have not affirmatively chosen an alternative electric service plan. |
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The commission may use this customer information to conduct a |
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customer education program under Section 39.903 to inform those |
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residential customers of the availability of an alternative |
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electric service plan offered by that provider or of alternative |
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retail electric providers from whom the customers may receive |
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service. |
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(f) For purposes of this section, a residential customer is |
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not considered to have affirmatively chosen an electric service |
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plan offered by a retail electric provider if electric service is |
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provided under a plan that is initiated through negative option |
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marketing. |
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(g) A retail electric provider shall include on a ballot |
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provided under Subsection (d) the following statement: "You may |
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obtain important information that will allow you to compare the |
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products offered on this ballot with other retail electric services |
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by contacting the Public Utility Commission of Texas or by viewing |
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the Internet site at http://www.powertochoose.com." |
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SECTION 6. Section 39.902, Utilities Code, is amended by |
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amending Subsection (c) and adding Subsection (d) to read as |
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follows: |
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(c) After the opening of the retail electric market, the |
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commission shall conduct ongoing customer education designed to |
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help customers make informed choices of electric services and |
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retail electric providers. As part of ongoing education, the |
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commission may provide customers information concerning prices |
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available in the marketplace, savings available to customers by |
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switching retail electric providers or service plans, and |
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information concerning specific retail electric providers, |
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including instances of complaints against them and records relating |
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to quality of customer service. |
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(d) The commission may require a transmission and |
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distribution utility to issue public service announcements that |
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inform customers that service reliability and the restoration of |
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electric service following an outage is not contingent on the |
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customer's receiving service from a particular retail electric |
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provider. |
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SECTION 7. The change in law made to Section 17.157(a), |
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Utilities Code, by this Act does not apply to a dispute for which a |
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final administrative order is entered on or before the effective |
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date of this Act. |
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SECTION 8. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |