16 TAC §25.498
The Public Utility Commission of Texas (commission) proposes
new §25.498, relating to Prepaid Electric Service Using Customer-Premise
Prepayment Devices. The section relates to minimum requirements for prepaid
service using special customer-premise prepayment devices, including required
functions for such devices, content of, frequency, and delivery of billing
information, deferred payment plans, and interruption of service. The section
is a competition rule subject to judicial review as specified in Public Utility
Regulatory Act (PURA) §39.001(e). Project number 33814 is assigned to
this proceeding.
The commission recognizes that some of the requirements of the existing
customer protection rules are inconsistent with prepaid electric service using
customer-premise prepayment devices. In this rule, the commission specifies
which existing commission rules do not apply to prepaid electric service using
special devices and establishes minimum standards that will apply to such
service.
Christine Wright, Retail Market Analyst, Electric Industry Oversight Division,
determined that for each year of the first five years that the section is
in effect there will be no fiscal implications for state or local government
as a result of enforcing or administering the section.
Ms. Wright determined that for each year of the first five years that the
section is in effect, to the extent that customer-premise prepayment devices
are deployed, the public benefit anticipated as a result of enforcing the
section will be new, additional payment options and beneficial electric services
that will be provided through the devices. There will be no adverse economic
effect on small business or micro-businesses as a result of enforcing the
section. There will be no economic cost to persons who are required to comply
with the section, because deployment of the customer-premise prepayment devices
is voluntary.
Ms. Wright has also determined that for each year of the first five years
the proposed section is in effect there should be no effect on a local economy,
and therefore no local employment impact statement is required under Administrative
Procedure Act (APA), Texas Government Code §2001.022.
Comments on the new section may be submitted to the Filing Clerk, Public
Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin,
Texas 78711-3326, no later than March 16, 2007. Reply comments may be submitted
to the same address no later than March 26, 2007. Sixteen copies of comments
and reply comments on the section are required to be filed pursuant to §22.71(c)
of this title. Comments and reply comments should be organized in a manner
consistent with the organization of the section. The commission invites specific
comments regarding the costs associated with, and the benefits that will be
gained by, implementation of the section. The commission will consider the
costs and benefits in deciding whether to adopt the new section. All comments
should refer to Project Number 33814.
This new section is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2006), which directs the commission to adopt and enforce rules required in
the exercise of its powers and jurisdiction; PURA §17.004, which directs
the commission to establish and enforce customer protection standards, including
protection from unfair, misleading, deceptive, or anticompetitive practices;
the right to have bills presented in a clear, readable format and easy-to-understand
language; and the right of low-income customers to have access to bill payment
assistance programs designed to reduce uncollectible amounts; PURA §39.001,
which adopts a policy that competition in the sale of electricity is consistent
with the public interest and directs the commission to use competitive, rather
than regulatory methods, to achieve this policy; and PURA §39.101, which
requires customer safeguards, including the right to safe, reliable and reasonably
priced electricity; protection against service disconnections in extreme weather
emergencies or in cases of medical emergency; bills presented in a clear format
and in a language readily understandable by customers; accuracy of meter reading
and billing; and other protections necessary to ensure high-quality service
to customers.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
17.004, 39.001, and 39.101.
§25.498.Retail Electric Service Using Customer-Premise Prepayment Devices.
(a)
Application. This section applies to a retail electric
provider (REP) that offers prepaid service using a customer-premise device
with prepayment capabilities.
(1)
If a REP meets the requirements of subsections (b) through
(g) of this section, its prepaid service using customer-premise prepayment
devices is exempt from the following requirements:
(A)
§25.479(b) of this title (relating to Issuance and
Format of Bills);
(B)
§25.479(c)(1)(G) and (H) of this title; and
(C)
§25.480(b), (h), (i), (j), and (k) of this title (relating
to Bill Payment and Adjustments).
(2)
If a REP meets the requirements of subsections (b) through
(g) of this section, interruption of a customer's electric service is exempt
from the requirements of §25.483 of this title (relating to Disconnection
of Service).
(b)
Minimum requirements for prepaid service using a customer-premise
prepayment device.
(1)
A REP shall file with the commission a written description
of its prepaid services using a customer-premise prepayment device prior to
offering such services to customers. The description shall include the technical
specifications of its customer-premise prepayment device and a detailed description
of how the REP will meet the applicable requirements of this subchapter (Subchapter
R, Customer Protection Rules for Retail Electric Service).
(2)
A customer-premise prepayment device may either be a meter
owned or controlled by a REP or a device that communicates with a transmission
distribution utility (TDU) advanced meter that will permit the customer's
service to be interrupted if the customer's prepayment is exhausted and interruption
of power is not prohibited under this section.
(3)
A REP-owned meter with prepayment capabilities (special
meter) may be considered a customer-premise prepayment device. However, a
REP shall not deploy a special meter that has not been successfully installed
in at least 500 residences in North America, Australia, Japan, or Western
Europe. No special meter that violates the test calibration limits as set
by the American National Standards Institute, Incorporated shall be placed
in service or left in service. Whenever a test indicates a special meter violates
these limits, the meter shall promptly be replaced or made to comply with
these limits.
(4)
Prepaid retail electric service shall include a means by
which the REP may communicate the information required by this subsection
to the customer, such as but not limited to a customer information unit in
the customer's premises, email, telephone, or mobile phone communications
or other electronic communications as described in the REP's terms of service.
If a REP offers multiple means by which it communicates information required
by this subsection to the customer, it shall allow the customer to choose
the means in which the customer receives communication.
(5)
Prepaid retail electric service shall include a means by
which the customer may make payments for service at the customer's premises,
at a location near the customer's premises, or by using two prepayment devices
located at the premises and near the premises.
(6)
A customer-premise prepayment device shall:
(A)
allow a customer to prepay a REP for electric service;
(B)
communicate to the customer in English or Spanish the customer's
current balance, time and date, electricity usage since last payment in kilowatt-hours,
electricity rate, and estimated time or days of paid electricity remaining;
(C)
communicate to the customer the name of the REP and the
REP's toll-free customer service telephone number;
(D)
communicate to the customer a warning at least three days
and not more than seven days before a customer's prepaid balance is estimated
to drop to zero;
(E)
provide a means to store electricity usage information
for at least 60 days and a means for the customer to access this information;
(F)
when a customer makes a payment, provide a written receipt
or confirmation of payment that includes the customer's account number, payment
amount, and itemization of any charges in addition to the prepayment or provide
a confirmation code that will permit the customer to access such information;
and
(G)
be removed easily or switched into bypass mode for customers
who choose a different REP or an electric service that does not require prepayment
.
(7)
The communication provided under paragraph (6)(B) of this
subsection shall either be available to the customer whenever the customer
initiates a request for the information or shall be provided at least daily.
(8)
A REP shall test a customer-premise prepayment device that
meters consumption for accuracy free of charge one time every four years upon
a request of a customer. The REP shall maintain records of testing for at
least four years. Prepayment mechanisms shall accurately account for customer
payments.
(c)
Disclosures. In addition to the other disclosures required
by this title, the terms of service and Your Rights as a Customer for prepaid
service under this section shall include a prominent disclosure that if the
customer's prepayment balance is exhausted, the customer's service may be
interrupted.
(d)
Notice of customer names. If a REP uses a customer-premise
prepayment device consistent with this section, it shall provide the Electric
Reliability Council of Texas (ERCOT) and the transmission and TDU the name,
service and mailing addresses, and electric service identifier (ESI) of each
customer with such a device. The REP shall treat each person taking prepaid
service with such a device as a customer for purposes of this subchapter,
including §25.471 of this title (relating to General Provisions of Customer
Protection Rules). A REP offering such a service to multiple tenants at a
single location may also designate a property owner or property manager as
the customer of record for the purpose of transactions with ERCOT and the
TDU, but it shall provide ERCOT the name of each tenant that is taking such
service.
(e)
Summary of electric charges.
(1)
REPs providing electric prepayment service using a customer-premise
prepayment device are not required to issue traditional bills or invoices
to their customers. A REP using a customer-premise prepayment device shall
issue a summary of electric charges to each prepaid electric service customer
upon request. A summary of electric charges shall be in writing and delivered
by the REP's employee or agent; by electronic means if the customer agrees
in writing; or by the United States Postal Service.
(2)
A summary of electric charges shall include the information
specified in §25.479(c) of this title, except that the information specified
in §25.479(c)(1)(G) and (H) is not required. The summary of electric
charges shall also include dates and amounts of payments made during the period
covered by the summary.
(3)
A REP shall keep records necessary to produce a summary
of electric charges for two years.
(4)
Within one business day of receiving a request, a REP shall
provide a summary of electric charges showing a customer's electric payments
and usage for one year to an energy assistance provider that shows proof of
authorization to obtain the information.
(f)
Deferred payment plans. A deferred payment plan for a customer
taking prepaid service using a customer-premise prepayment device is an agreement
between the REP and a customer that allows a customer to pay outstanding charges
in installments. A deferred payment plan may be established in person or by
telephone, but shall be confirmed in writing by the REP.
(1)
A REP shall offer a deferred payment plan to customers,
upon request, whose prepaid account balance is exhausted during an extreme
weather emergency, pursuant to subsection (g)(5) of this section.
(2)
A REP shall offer a deferred payment plan to a customer
who has been underbilled, as described in §25.480(e) of this title.
(3)
For customers who have expressed an inability to pay, a
REP may offer a deferred payment plan.
(4)
A REP shall not refuse a customer's participation in any
deferred payment plan on any basis set forth in §25.471(c) of this title.
(5)
A deferred payment plan offered by a REP shall provide
that it shall be paid in installments that a customer may make over at least
three months. A REP may require an initial payment not to exceed 25% of any
outstanding balance.
(6)
A copy of the deferred payment plan shall be provided to
the customer and:
(A)
shall include a statement, in clear and conspicuous type,
that states, "If you are not satisfied with this agreement, or if the agreement
was made by telephone and you believe this does not reflect your understanding
of that agreement, contact (insert name of REP)." In addition, where the customer
and the REP's representative or agent meets in person, the representative
shall read the preceding statement to the customer;
(B)
may include a penalty not to exceed 5.0% for late payment,
but shall not include a finance charge;
(C)
shall state the length of time covered by the plan;
(D)
shall state the total amount to be paid under the plan;
(E)
shall allow the REP to interrupt a customer's power supply
if the customer does not fulfill the terms of the deferred payment plan, and
shall state the terms under which a customer's power supply may be interrupted;
and
(F)
shall allow either the customer or the REP to initiate
a renegotiation of the deferred payment plan if the customer's economic or
financial circumstances change substantially during the time of the deferred
payment plan.
(g)
Interruption of electric service.
(1)
A REP shall not allow a customer's electric service to
be interrupted on a holiday or weekend, or the day immediately preceding a
holiday or weekend, because the customer's prepaid balance has been exhausted,
unless the REP is readily able on those days to accept payment and promptly
resume electric service.
(2)
A REP shall not allow a customer's electric service to
be interrupted because the customer's prepaid balance has been exhausted between
9 p.m. and 7 a.m. or during any period in which the prepayment mechanisms
are not available or the REP's customer service center is not operating.
(3)
A REP shall not allow a customer's electric service to
be interrupted because the customer's prepaid balance has been exhausted when
the customer establishes that interruption of service will cause some person
residing at that residence to become seriously ill or more seriously ill,
and the requirements of subparagraph (A) of this paragraph have been met.
(A)
Each time a customer seeks to avoid interruption of service
under this paragraph, the customer shall accomplish all of the following before
the customer's service is interrupted:
(i)
have the person's attending physician (for purposes of
this subsection, the "physician" shall mean any public health official, including
medical doctors, doctors of osteopathy, nurse practitioners, registered nurses,
and any other similar public health official) submit a written statement to
the REP stating that interruption of service will cause some person residing
at that residence to become seriously ill or more seriously ill; and
(ii)
enter into a deferred payment plan.
(B)
The prohibition against service interruption provided by
this paragraph shall last the lesser of 63 days from the date the REP receives
a written statement from the attending physician, or a period agreed upon
by the REP and the customer or physician.
(4)
A REP shall not allow a customer's electric supply service
to be interrupted because the customer's prepaid balance has been exhausted
if the REP receives a pledge, letter of intent, purchase order, or other notification
from an electric assistance provider that it is forwarding sufficient payment
to continue service; and the customer either pays or makes payment arrangements
to pay any amount due that is not covered by the energy assistance provider.
(A)
If an energy assistance provider has requested monthly
usage data pursuant to §25.472(b)(4) of this title (relating to Privacy
of Customer Information), the REP shall not allow a customer's electric service
to be interrupted because the customer's prepaid balance has been exhausted
until five business days after it has provided the usage data.
(B)
A REP may interrupt a customer's electric service if payment
from the energy assistance provider's commitment is not timely received, or
if the customer fails to pay any portion of the amount not covered by the
commitment.
(5)
A REP shall not allow a customer's electric supply service
to be interrupted because the prepaid balance has been exhausted during an
extreme weather emergency in the county in which the service is provided.
(A)
The term "extreme weather emergency" shall mean a day when:
(i)
the previous day's highest temperature did not exceed 32
degrees Fahrenheit, and the temperature is predicted to remain at or below
that level for the next 24 hours anywhere in the county, according to the
nearest National Weather Service (NWS) reports; or
(ii)
the NWS issues a heat advisory for the county, or when
such advisory has been issued on any one of the preceding two calendar days
in the county.
(B)
During an extreme weather emergency, a REP shall offer
a residential customer a deferred payment plan upon request by the customer
that complies with the requirements of subsection (f) of this section.
This agency hereby certifies that the proposal
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 February 9, 2007.
TRD-200700384
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: March 25, 2007
For further information, please call: (512) 936-7223