Part 2.
PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25.
SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
Subchapter R. CUSTOMER PROTECTION RULES FOR RETAIL ELECTRIC SERVICE
16 TAC §25.478
The Public Utility Commission of Texas (commission) adopts
an amendment to §25.478, relating to Credit Requirements and Deposits
with changes to the proposed text as published in the February 4, 2005, issue
of the
Texas Register
(30 TexReg 456). The
amendment adds local law enforcement personnel, the Office of a Texas District
Attorney or County Attorney, the Office of Attorney General, and grantees
of the Texas Equal Access to Justice Foundation to the list of entities authorized
to designate a customer as a victim of family violence in order to demonstrate
satisfactory credit for electric service. This amendment is adopted under
Project Number 30047.
The commission received comments on the proposed amendment from Texas Legal
Services Center (TLSC), the Texas Council on Family Violence (TCFV), and Reliant
Energy, Incorporated (Reliant).
TLSC proposed that the rule be expanded to include providers of free civil
legal services that are funded by the Texas Equal Access to Justice Foundation
as entities authorized to certify a person as a victim of family violence
in order to demonstrate satisfactory credit. TCFV supports the proposal. Reliant
stated that it is not necessary to further expand the rule to allow legal
providers the authority to make the certification.
Commission Response
The commission agrees with the proposal submitted by TLSC and makes the
appropriate changes.
TLSC also proposed that the rule be expanded to apply to competitive providers
as well as affiliated retail electric providers and the provider of last resort.
TCFV supported this proposal.
Commission Response
Expanding the scope of the rule to apply to competitive providers was not
originally contemplated by this project and therefore the proposed change
cannot be made without republication. Rather than delay the adoption of the
rule, the commission rejects the proposed change at this time. This issue
may be reconsidered in the future.
This amendment is adopted under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2005) (PURA) which provides the commission with the authority to make and
enforce rules reasonably required in the exercise of its powers and jurisdiction
and §39.101, which provides the commission with the authority to establish
rules governing customer service, including customer deposits.
Cross Reference to Statutes: Public Utility Regulatory Act §14.002
and §39.101.
§25.478.Credit Requirements and Deposits.
(a)
Credit requirements for residential customers. A retail
electric provider (REP) may require a residential customer or applicant to
establish and maintain satisfactory credit as a condition of providing service
pursuant to the requirements of this section.
(1)
Establishment of satisfactory credit shall not relieve
any customer from complying with the requirements for payment of bills by
the due date of the bill.
(2)
The credit worthiness of spouses established during shared
service in the 12 months prior to their divorce will be equally applied to
both spouses for 12 months immediately after their divorce.
(3)
A residential customer or applicant seeking to establish
service with an affiliated REP or provider of last resort (POLR) can demonstrate
satisfactory credit using one of the criteria listed in subparagraphs (A)
through (E) of this paragraph. A REP other than an affiliated REP or POLR
may establish other criteria by which a customer or applicant can demonstrate
satisfactory credit, so long as such criteria are not discriminatory pursuant
to §25.471(c) of this title (relating to General Provisions of Customer
Protection Rules).
(A)
A residential customer or applicant may be deemed as having
established satisfactory credit if the customer or applicant:
(i)
has been a customer of any REP or an electric utility within
the two years prior to the request for electric service;
(ii)
is not delinquent in payment of any such electric service
account; and
(iii)
during the last 12 consecutive months of service was
not late in paying a bill more than once.
(B)
A residential customer or applicant may be deemed as having
established satisfactory credit if the customer or applicant possesses a satisfactory
credit rating obtained through a consumer reporting agency, as defined by
the Federal Trade Commission.
(C)
A residential customer or applicant may be deemed as having
established satisfactory credit if the customer or applicant is 65 years of
age or older and the customer is not currently delinquent in payment of any
electric service account.
(D)
A residential customer or applicant may be deemed as having
established satisfactory credit if the customer or applicant has been determined
to be a victim of family violence as defined in the Texas Family Code §71.004,
by a family violence center as defined in Texas Human Resources Code §51.002,
by treating medical personnel, by law enforcement personnel, by the Office
of a Texas District Attorney or County Attorney, by the Office of the Attorney
General, or by a grantee of the Texas Equal Access to Justice Foundation.
This determination shall be evidenced by submission of a certification letter
developed by the Texas Council on Family Violence. The certification letter
may be submitted directly by use of a toll-free fax number to the affiliated
REP or POLR.
(E)
A residential customer or applicant seeking to establish
service may be deemed as having established satisfactory credit if the customer
is medically indigent. In order for a customer or applicant to be considered
medically indigent, the customer or applicant must make a demonstration that
the following criteria are met. Such demonstration must be made annually:
(i)
the customer's or applicant's household income must be
at or below 150% of the poverty guidelines as certified by a governmental
entity or government funded energy assistance program provider; and
(ii)
the customer or applicant or the spouse of the customer
or applicant must have been certified by that person's physician as being
unable to perform three or more activities of daily living as defined in 22
TAC §224.4, or the customer's or applicant's monthly out-of-pocket medical
expenses must exceed 20% of the household's gross income. For the purposes
of this subsection, the term "physician" shall mean any medical doctor, doctor
of osteopathy, nurse practitioner, registered nurse, state-licensed social
workers, state-licensed physical and occupational therapists, and an employee
of an agency certified to provide home health services pursuant to 42 U.S.C. §1395
(4)
Pursuant to the Public Utility Regulatory Act (PURA) §39.107(g),
a REP that requires pre-payment for metered residential electric service may
not charge an amount for electric service that is higher than the price charged
by the POLR in the applicable transmission and distribution service territory.
(5)
The REP may obtain payment history information from any
REP that has served the applicant in the previous two years or from a consumer
reporting agency, as defined by the Federal Trade Commission. The REP shall
obtain the customer's or applicant's authorization prior to obtaining such
information from the customer's or applicant's prior REP. A REP shall maintain
payment history information for two years after a customer's electric service
has been terminated or disconnected in order to be able to provide credit
history information at the request of the former customer.
(b)
Credit requirements for non-residential customers. A REP
may establish nondiscriminatory criteria pursuant to §25.471(c) of this
title to evaluate the credit requirements for a non-residential customer or
applicant and apply those criteria in a nondiscriminatory manner. If satisfactory
credit cannot be demonstrated by the non-residential customer or applicant
using the criteria established by the REP, the customer may be required to
pay an initial or additional deposit. No such deposit shall be required if
the customer or applicant is a governmental entity.
(c)
Initial deposits for applicants and existing customers.
(1)
If satisfactory credit cannot be demonstrated by a residential
applicant, a REP may require the applicant to pay a deposit prior to receiving
service.
(2)
An affiliated REP or POLR shall offer a residential customer
or applicant who is required to pay an initial deposit the option of providing
a written letter of guarantee pursuant to subsection (i) of this section,
instead of paying a cash deposit.
(3)
A REP shall not require an initial deposit from an existing
customer unless the customer was late paying a bill more than once during
the last 12 months of service or had service terminated or disconnected for
nonpayment during the last 12 months of service. The customer may be required
to pay this initial deposit within ten days after issuance of a written disconnection
notice that requests such deposit. The disconnection notice may be combined
with or issued concurrently with the request for deposit. The disconnection
notice shall comply with the requirements in §25.483(m) of this title
(relating to Disconnection of Service).
(d)
Additional deposits by existing customers.
(1)
A REP may request an additional deposit from an existing
customer if:
(A)
the average of the customer's actual billings for the last
12 months are at least twice the amount of the original average of the estimated
annual billings; and
(B)
a termination or disconnection notice has been issued or
the account disconnected within the previous 12 months.
(2)
A REP may require the customer to pay an additional deposit
within ten days after the REP has requested the additional deposit.
(3)
A REP may terminate or disconnect service if the additional
deposit is not paid within ten days of the request, provided a written disconnection
notice has been issued to the customer. A disconnection notice may be combined
with or issued concurrently with the written request for the additional deposit.
The disconnection notice shall comply with the requirements in §25.483(m)
of this title.
(e)
Amount of deposit.
(1)
The total of all deposits, initial and additional, required
by a REP from any residential customer or applicant
(A)
shall not exceed an amount equivalent to the greater of
(i)
one-fifth of the customer's estimated annual billing or;
(ii)
the sum of the estimated billings for the next two months.
(B)
A REP may base the estimated annual billing for initial
deposits for applicants on a reasonable estimate of average usage for the
customer class. If a REP requests additional or initial deposits from existing
customers, the REP shall base the estimated annual billing on the customer's
actual historical usage, to the extent that the historical usage is available.
After 12 months of service with a REP, a customer may request that a REP recalculate
the required deposit based on actual historical usage of the customer.
(2)
For the purpose of determining the amount of the deposit,
the estimated billings shall include only charges for electric service that
are disclosed in the REP's terms of service document provided to the customer
or applicant
(3)
If a customer or applicant qualifies for the rate reduction
program under §25.454 of this title (relating to Rate Reduction Program),
then such customer or applicant shall be eligible to pay any deposit that
exceeds $50 in two equal installments. Notice of this option for customers
eligible for the rate reduction program shall be included in any written notice
to a customer requesting a deposit. The customer shall have the obligation
of providing sufficient information to the REP to demonstrate that the customer
is eligible for the rate reduction program. The first installment shall be
due no sooner than ten days, and the second installment no sooner than 40
days, after the issuance of written notification to the applicant of the deposit
requirement.
(f)
Interest on deposits. A REP that requires a deposit pursuant
to this section shall pay interest on that deposit at an annual rate at least
equal to that set by the commission in December of the preceding year, pursuant
to Texas Utilities Code §183.003 (relating to Rate of Interest). If a
deposit is refunded within 30 days of the date of deposit, no interest payment
is required. If the REP keeps the deposit more than 30 days, payment of interest
shall be made from the date of deposit.
(1)
Payment of the interest to the customer shall be made annually,
if requested by the customer, or at the time the deposit is returned or credited
to the customer's account.
(2)
The deposit shall cease to draw interest on the date it
is returned or credited to the customer's account.
(g)
Notification to customers. When a REP requires a customer
to pay a deposit, the REP shall provide the customer written information about
the provider's deposit policy, the customer's right to post a guarantee in
lieu of a cash deposit if applicable, how a customer may be refunded a deposit,
and the circumstances under which a provider may increase a deposit. These
disclosures shall be included either in the Your Rights as a Customer disclosure
or the REP's terms of service document.
(h)
Records of deposits.
(1)
A REP that collects a deposit shall keep records to show:
(A)
the name and address of each depositor;
(B)
the amount and date of the deposit; and
(C)
each transaction concerning the deposit.
(2)
A REP that collects a deposit shall issue a receipt of
deposit to each customer or applicant paying a deposit or reflect the deposit
on the customer's bill statement. A REP shall provide means for a depositor
to establish a claim if the receipt is lost.
(3)
A REP shall maintain a record of each unclaimed deposit
for at least four years.
(4)
A REP shall make a reasonable effort to return unclaimed
deposits.
(i)
Guarantees of residential customer accounts. A guarantee
agreement in lieu of a cash deposit issued by any REP, if applicable, shall
conform to the following requirements:
(1)
A guarantee agreement between a REP and a guarantor shall
be in writing and shall be for no more than the amount of deposit the provider
would require on the customer's account pursuant to subsection (e) of this
section. The amount of the guarantee shall be clearly indicated in the signed
agreement. The REP may require, as a condition of the continuation of the
guarantee agreement, that the guarantor remain a customer of the REP, have
no past due balance, and have no more than one late payment in a 12-month
period during the term of the guarantee agreement.
(2)
The guarantee shall be voided and returned to the guarantor
according to the provisions of subsection (j) of this section.
(3)
Upon default by a residential customer, the guarantor of
that customer's account shall be responsible for the unpaid balance of the
account only up to the amount agreed to in the written agreement.
(4)
If the guarantor ceases to be a customer of the REP or
has more than one late payment in a 12-month period during the term of the
guarantee agreement, the provider may treat the guarantee agreement as in
default and demand a cash deposit from the residential customer as a condition
of continuing service.
(5)
The REP shall provide written notification to the guarantor
of the customer's default, the amount owed by the guarantor, and the due date
for the amount owed.
(A)
The REP shall allow the guarantor 16 days from the date
of notification to pay the amount owed on the defaulted account. If the sixteenth
day falls on a holiday or weekend, the due date shall be the next business
day.
(B)
The REP may transfer the amount owed on the defaulted account
to the guarantor's own electric service bill provided the guaranteed amount
owed is identified separately on the bill as required by §25.479 of this
title (relating to Issuance and Format of Bills).
(6)
The REP may initiate termination of the guarantor's service
(or disconnection of service for the POLR, or any REP having disconnect authority)
for nonpayment of the guaranteed amount only if the termination of service
(or, where applicable, the disconnection of service) was disclosed in the
written guarantee agreement, and only after proper notice as described by
paragraph (5) of this subsection and §25.482 of this title (relating
to Termination of Service) or §25.483 of this title.
(j)
Refunding deposits and voiding letters of guarantee.
(1)
A deposit held by a REP shall be refunded when the customer
has paid bills for service for 12 consecutive residential billings or for
24 consecutive non-residential billings without having any late payments.
A REP may refund the deposit to a customer via a bill credit. REPs shall comply
with this provision as soon as practicable, but no later than August 31, 2004.
(2)
Once the REP is no longer the REP of record for a customer
or if service is not established with the REP, the REP shall either transfer
the deposit plus accrued interest to the customer's new REP or promptly refund
the deposit plus accrued interest to the customer, as agreed upon by the customer
and both REPs. The REP may subtract from the amount refunded any amounts still
owed by the customer to the REP. If the REP obtained a guarantee, such guarantee
shall be cancelled to the extent that it is not needed to satisfy any outstanding
balance owed by the customer. Alternatively, the REP may provide the guarantor
with written documentation that the contract has been cancelled to the extent
that the guarantee is not needed to satisfy any outstanding balance owed by
the customer.
(3)
If a customer's or applicant's service is not connected,
or is terminated or disconnected, the REP shall promptly void and return to
the guarantor all letters of guarantee on the account or provide written documentation
that the guarantee agreement has been voided, or refund the customer's or
applicant's deposit plus accrued interest on the balance, if any, in excess
of the unpaid bills for service furnished. Similarly, if the guarantor's service
is not connected, or is terminated or disconnected, the REP shall promptly
void and return to the guarantor all letters of guarantee or provide written
documentation that the guarantees have been voided. This provision does not
apply when the customer or guarantor moves or changes the address where service
is provided, as long as the customer or guarantor remains a customer of the
REP.
(4)
A REP shall terminate a guarantee agreement when the customer
has paid its bills for 12 consecutive months without service being disconnected
for nonpayment and without having more than two delinquent payments.
(k)
Re-establishment of credit. A customer or applicant who
previously has been a customer of the REP and whose service has been terminated
or disconnected for nonpayment of bills or theft of service by that customer
(meter tampering or bypassing of meter) may be required, before service is
reinstated, to pay all amounts due to the REP or execute a deferred payment
agreement, if offered, and reestablish credit.
(l)
Upon sale or transfer of company. Upon the sale or transfer
of a REP or the designation of an alternative POLR for the customer's electric
service, the seller or transferee shall provide the legal successor to the
original provider all deposit records.
(m)
This section is effective June 1, 2004.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on April 5, 2005.
TRD-200501427
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Effective date: April 25, 2005
Proposal publication date: February 4, 2005
For further information, please call: (512) 936-7223
Subchapter B. CUSTOMER SERVICE AND PROTECTION
Chapter 26.
SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS