16 TAC §25.50
The Public Utility Commission of Texas (commission) adopts
on an emergency basis new §25.50, relating to Suspension of Disconnection
of Electric Service during the Summer of 2006. This section is being adopted
under Project Number 32874.
This emergency adoption is necessary because the state has experienced
record high demand for electricity recently due to the extreme and persistent
heat. The risk of disconnection due to the inability to pay by customers covered
by this section has therefore increased. In addition, disconnection of electricity
through the remainder of the summer season (September 30, 2006) when temperatures
can be expected to be high, constitutes a threat to the health of customers
covered by this section. Together these factors pose an imminent peril to
the public health. In addition, an expedited effective date of this section
is necessary because of the imminent peril to the public health. Therefore,
this rule shall be effective immediately on filing with the secretary of state.
The new section is adopted on an emergency basis pursuant to §§11.002,
14.001, 14.002, 14.005, 39.101 and 184.001 - 184.071 of the Texas Utilities
Code Annotated (Vernon 1998 & Supplement 2005). Section 11.002 states
that the purpose of the Public Utility Regulatory Act is to protect the public
interest inherent in the rates and services of public utilities; §14.001
provides the commission the general power to regulate and supervise the business
of each public utility within its jurisdiction and to do anything specifically
designated or implied by PURA that is necessary and convenient to the exercise
of that power and jurisdiction; §14.002 provides the commission with
the authority to adopt rules reasonably required in the exercise of its powers
and jurisdiction; §14.005 provides the commission authority to establish
criteria and guidelines with the utility industry relating to industry procedures
used in terminating services to the elderly and disabled; §39.101 provides
the commission authority to adopt by rule customer safeguards; and §§184.001
- 184.071 provide the commission authority over owners of master-metered and
submetered residential facilities.
This section is also adopted on an emergency basis pursuant to the procedures
for emergency rulemaking set forth in the Texas Government Code, §2001.034
(Vernon 2000 & Supplement 2005) and shall be effective for 120 days.
Cross reference to statutes: Texas Utilities Code §§11.002, 14.001,
14.002, 14.005, 39.101, 184.001 - 184.071.
§25.50.Suspension of Disconnection of Electric Service during Summer 2006.
(a)
Definitions. The following terms when used in this section
shall have the following meaning, unless the context indicates otherwise:
(1)
Critical care residential customer--Defined in §25.497(a)(3)
of this title (relating to Critical Care Customers).
(2)
Deferred payment plan--An agreement between the electric
provider and a customer that allows the customer to pay an outstanding bill
in installments that extend beyond the due date of the current bill.
(3)
Disconnection--Disconnection of electric service for non-payment
of services rendered.
(4)
Elderly low-income customer--A low income customer who
is 65 years of age or older.
(5)
Electric Provider--An entity defined as an electric utility
in §25.5(41) of this title (relating to Definitions) that bills end-use
customers for electric service, an entity defined as a retail electric provider
in §25.5(115) of this title, owners of master-metered residential facilities
as governed by §25.141 of this title (relating to Central System or Nonsubmetered
Master Metered Utilities), and owners of submetered residential facilities
as governed by §25.142 of this title (relating to Submetering for Apartments,
Condominiums, and Mobile Home Parks).
(6)
Low-income customer--Defined by §25.5(65) of this
title.
(b)
Disconnection prohibited.
(1)
An electric provider shall not authorize or execute the
disconnection of electric service for the period beginning the effective date
of this section through September 30, 2006, for a critical care residential
customer or an elderly low-income customer who contacts the electric provider
regarding bill payment or in response to a disconnection notice. If the critical
care residential customer or elderly low-income customer has already been
disconnected during this period, the electric provider shall request or execute
a reconnection of the customer's electric service. If an electric provider
has already requested disconnection of electric service to occur during this
period, the electric provider shall rescind such request. If a customer has
an existing designation as a critical care residential customer, an electric
provider shall not authorize disconnection irrespective of whether or not
the customer contacts the electric provider as long as the critical care residential
customer status is in effect.
(A)
Critical care residential customers and elderly low-income
customers should be encouraged to make a partial payment on the deferred electric
bills during the period that disconnections are prohibited by this section,
but the electric provider shall make clear that the critical care residential
customer or elderly low-income customer will not be disconnected for non-payment
prior to October 1, 2006.
(B)
Any deferred payment plan established for one or more electric
bills that come due during the period that disconnections are prohibited shall
provide that the critical care residential customer or elderly low-income
customer is not required to pay more than 25% of the deferred bill(s) as part
of the first electric bill issued after September 30, 2006, with the remaining
balance to be paid in equal installments over the next five billing cycles,
unless the customer requests a lesser number of installments.
(C)
The deferred payment plan may be established in person
or by telephone and shall be confirmed in writing by the electric provider.
The deferred payment plan shall, at a minimum, include all of the information
required by §25.480(j)(6) of this title (relating to Bill Payments and
Adjustments), except that the plan may not include a penalty for late payments
accrued during the period that disconnection was prohibited by this section,
and the customer may initiate a renegotiation of the deferred payment plan
one time during the time of the deferred payment plan regardless of whether
the customer's economic or financial circumstances have changed.
(D)
An electric provider may pursue disconnection of electric
service following the prohibition on disconnection provided by this section
if a customer does not meet the terms of a deferred payment plan unless other
provisions of this title prohibit disconnection. However, electric service
shall not be disconnected until appropriate notice has been issued, as required
by this title, notifying the customer that the customer has not met the terms
of the plan.
(2)
An electric provider shall not authorize or execute disconnection
of electric service for the period beginning the effective date of this section
through September 30, 2006, for a low-income customer that contacts their
electric provider regarding bill payment or in response to a disconnection
notice if the low-income customer enters into a deferred payment plan with
his or her electric provider for the current month's electric charges and
meets the terms of any existing deferred payment plan. If the low-income customer
has already been disconnected during this period due to failure to pay the
current month's electric charges, the electric provider shall request or execute
a reconnection of the customer's electric service if the customer enters into
a deferred payment plan. If the electric provider has already requested disconnection
of the customer due to failure to pay the current month's electric charges,
the electric provider shall rescind such request if the customer enters into
a deferred payment plan.
(A)
An electric provider shall offer a deferred payment plan
to any low-income customer that expresses an inability to pay an electric
bill that becomes due beginning the effective date of this section through
September 30, 2006, even if the electric provider is not required to offer
a deferred payment plan pursuant to the provisions of §25.480(j)(3) of
this title.
(B)
A deferred payment plan established under this paragraph
shall provide that the customer will pay no more than 25% of the deferred
bill to initiate the agreement with the remaining balance to be paid in equal
installments over the next five billing cycles, unless the customer requests
a lesser number of installments.
(C)
The deferred payment plan may be established in person
or by telephone and shall be confirmed in writing by the electric provider.
The deferred payment plan shall, at a minimum, include all of the information
required by §25.480(j)(6) of this title, except that the plan may not
include a penalty for late payments accrued during the period that disconnection
was prohibited by this section, and the customer may initiate a renegotiation
of the deferred payment plan during the time of the deferred payment plan
regardless of whether the customer's economic or financial circumstances have
changed. However, during the period that disconnection is prohibited by this
section, the electric provider may require payment of no more than 25% of
the current month's charges plus the due installment(s) on any prior deferred
payment plan(s). The electric provider may, but is not required to, extend
a deferred payment plan entered into pursuant to this subparagraph, beyond
the March 2007 billing cycle.
(D)
An electric provider may pursue disconnection of electric
service if a customer does not meet the terms of a deferred payment plan unless
other provisions of this title prohibit disconnection. However, electric service
shall not be disconnected until appropriate notice has been issued, as required
by this title, notifying the customer that the customer has not met the terms
of the plan.
(c)
For purposes of determining whether a customer is a low-income
customer eligible for the protections under this section, an electric provider
may utilize the most recent list of low-income customers compiled by the Low-Income
Discount Administrator as defined by §25.454(d)(3) of this title (relating
to Rate Reduction Program). The electric provider may require customers not
identified by the Low-Income Discount Administrator to provide documentation
consistent with the information required for self-enrollment used by the Low-Income
Discount Administrator.
This agency hereby certifies that the emergency adoption
has been reviewed by legal counsel and found to be within the agency's legal
authority to adopt.
Filed with the Office of
the Secretary of State on July 21, 2006.
TRD-200603840
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Effective Date: July 21, 2006
Expiration Date: November 17, 2006
For further information, please call: (512) 936-7223