PART 2. PUBLIC UTILITY COMMISSION OF TEXAS
CHAPTER 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
The Public Utility Commission of Texas (commission) proposes an amendment to §25.25, relating to Issuance and Format of Bills and §25.479, relating to Issuance and Format of Bills. The amendments will implement certain provisions of Texas House Bill 1822 (HB 1822), 81st Leg. (2009), Public Utilities Regulatory Act (PURA) §§17.003(c), 17.004(a), and 17.102, pertaining to a list of defined terms common to the electric industry and Texas House Bill 1799 (HB 1799), 81st Leg. (2009), PURA §39.116 pertaining to notice regarding customer choice information. The proposed rules, if adopted, would require electric service providers to use specific defined terms in billing their customers and require that information concerning the customer-information website operated by the commission be included on customer bills. The defined terms in this amendment use "charge" to define amounts applied at the discretion of the electric utility and the retail electric provider, "fee" to define amounts that are designated by a governmental agency to be used for a specific, and "tax" to define amounts that are designated by a governmental agency without a designated purpose. The amendments are to competition rules subject to judicial review as specified in PURA §39.001(e). Project Number 37070 is assigned to this proceeding.
Ernest Garcia, Retail Market Analyst, Competitive Markets Division has determined that for each year of the first five-year period the amendment is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amendments.
Mr. Garcia has determined that for each year of the first five years the amendments are in effect the public benefit anticipated as a result of enforcing the amendments will be that electric customers will have a clearer understanding of charges on their bills. The amendments are also proposed to implement certain provisions of HB 1822 and HB 1799. There may be economic costs to persons who are required to comply with the amendments. These costs are associated with the modifications to company billing systems and are likely to vary from business to business and are difficult to ascertain but, they are not anticipated to be significant. However, it is believed that the benefits accruing from implementation of the amendments will outweigh these costs. These costs may result in an adverse economic effect on approximately thirty small businesses or micro-business that are retail electric providers (REPs). The commission considered proposing a more extensive list of required terms, but concluded that benefits to customers of requiring a more extensive list would probably be greater than the implementation costs to electric service providers. HB 1822 includes a deadline for adoption of a rule of December 1, 2009, so the commission has not had time to conduct an extensive evaluation of the costs and benefits of various alternatives. It requests that parties that comment on the proposed rules address the question of costs and benefits of this proposal and any alternatives that are recommended in their comments.
Ernest Garcia, Retail Markets Analyst, Competitive Markets Division has also determined that for each year of the first five years the amendments are 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.
The commission staff will conduct a public hearing on this rulemaking, if requested pursuant to the Administrative Procedure Act, Texas Government Code §2001.029, at the commission's offices located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701 on Wednesday, October 7, 2009. The request for a public hearing must be received within 30 days after publication.
Initial comments on the amendments may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 31 days after publication and reply comments may be submitted within 45 days after publication. Sixteen copies of comments on the amendments are required to be filed pursuant to §22.71(c) of this title. Comments should be organized in a manner consistent with the organization of the amended rules. All comments should refer to Project Number 37070.
SUBCHAPTER B. CUSTOMER SERVICE AND PROTECTION
The amendments are proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 2007 and Supp. 2008) (PURA), which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction; and specifically, PURA §17.001, which directs the commission to adopt and enforce customer protection rules; §17.003(c), which requires the commission to require electric service providers to give clear and understandable information to customers about rates and to use a list of defined terms; §17.004(a), which provides that customers are entitled to bills that are presented in clear, readable and easy-to-understand language that uses terms defined in the rules adopted under §17.003; §17.102, which directs the commission to adopt and enforce rules requiring that charges on an electric service provider's bill be clearly and easily identified, using terms defined in the rules adopted under §17.003; and §39.101, which authorizes the commission to adopt and enforce rules to ensure that REPs' bills are presented in a clear format and in understandable language.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002, 17.001 17.003(c), 17.004(a), 17.102 and 39.101.
§25.25.Issuance and Format of Bills.
(a) Frequency of bills. An [The]
electric utility [or retail electric provider] shall issue
bills monthly, unless otherwise authorized by the Public Utility
Commission [commission], or unless service is provided
for a period less than one month. Bills shall be issued as promptly
as possible after reading meters.
(b) (No change.)
(c) Bill content. Each customer's bill shall include all the following information:
(1) - (8) (No change.)
(9) To the extent that a utility applies a charge to the customer's bill that is consistent with one of the terms set out in this paragraph, the term shall be used in identifying charges on customer's bills, and the definitions in this paragraph shall be easily located on the utility's website. A utility may not use a different term for a charge that is defined in this paragraph.
(A) Advanced metering charge--A charge to recover the costs of an advanced metering system;
(B) Energy Charge--Any charge, other than a tax or other fee, that is assessed on the basis of the customer's energy consumption.
(C) Energy Efficiency Cost Recovery Factor--A charge approved by the Public Utility Commission to recover the electric utility's cost of providing energy efficiency programs.
(D) Fuel Charge--A charge approved by the Public Utility Commission for the recovery of the utility's costs for the fuel used to generate electricity.
(E) Meter Number--The number assigned by the utility to the customer's meter.
(F) Meter Charge--A charge approved by the Public Utility Commission for metering a customer's consumption.
(G) Miscellaneous Gross Receipts Fee--A fee assessed to recover the miscellaneous gross receipts tax imposed on utilities operating in an incorporated city or town having a population of more than 1,000.
(H) Municipal Franchise Fee--A fee assessed to compensate municipalities for the utility's use of public rights-of-way.
(I) Nuclear Decommissioning Fee--A charge approved by the Public Utility Commission to provide funds for decommissioning of nuclear generating sites.
(J) PUC Assessment--A fee assessed to recover the statutory fee for administering the Public Utility Regulatory Act.
(K) Sales tax--Sales tax collected by a customer's city;
(10) To the extent that a utility uses the concepts identified in this paragraph in a customer's bill, it shall use the term set out in this paragraph, and the definitions in this paragraph shall be easily located on the utility's website. A utility may not use a different term for a charge that is defined in this paragraph.
(A) Current Meter Read--The meter reading at the end of the period for which the customer is being billed;
(B) kW--Kilowatt, the standard unit for measuring electricity demand, equal to 1,000 watts;
(C) kWh--Kilowatt-hour, the standard unit for measuring electricity energy consumption, equal to 1,000 watt-hours; and
(D) Previous Meter Read--The reading on the beginning the period for which the customer is being billed.
(d) - (f) (No change.)
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 July 31, 2009.
TRD-200903234
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: September 13, 2009
For further information, please call: (512) 936-7223
The amendments are proposed under the Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 2007 and Supp. 2008) (PURA), which provides the Public Utility Commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction; and specifically, PURA §17.001, which directs the commission to adopt and enforce customer protection rules; §17.003(c), which requires the commission to require electric service providers to give clear and understandable information to customers about rates and to use a list of defined terms; §17.004(a), which provides that customers are entitled to bills that are presented in clear, readable and easy-to-understand language that uses terms defined in the rules adopted under §17.003; §17.102, which directs the commission to adopt and enforce rules requiring that charges on an electric service provider's bill be clearly and easily identified, using terms defined in the rules adopted under §17.003; and §39.101, which authorizes the commission to adopt and enforce rules to ensure that REPs' bills are presented in a clear format and in understandable language.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002, 17.001 17.003(c), 17.004(a), 17.102 and 39.101.
§25.479.Issuance and Format of Bills.
(a) - (b) (No change.)
(c) Bill content.
(1) Each customer's bill shall include the following information:
(A) The certified name and address of the REP and the
number of the license issued to the REP by the Public Utility
Commission [commission];
(B) - (G) (No change.)
(H) The current charges for electric service as disclosed in the customer's terms of service document, including applicable taxes, and fees labeled "total current charges";
(I) A [exclusive of applicable
taxes, and a separate] calculation of the average unit price
of the current charge for electric service for the current billing
period, labeled, "The average price you paid for electric service
this month." This calculation shall reflect all fixed and variable
recurring charges, but not include any nonrecurring charges or credits,
which is expressed as a cents per kilowatt-hour amount rounded
to the nearest one-tenth of one cent. If the customer is on a level
or average payment plan, the level or average payment should be clearly
shown in addition to the usage-based rate;
(J) [(I)] The identification
and itemization of charges other than for electric service as disclosed
in the customer's terms of service document;
(K) [(J)] The itemization and
amount included in the amount due for any non-recurring charge, including
late fees, returned check fees, restoration of service fees, or other
fees disclosed in the REP's terms of service document provided to
the customer;
(L) [(K)] The [total current
charges,] balances from the preceding bill, payments made by
the customer since the preceding bill and[,]
the total amount due labeled "amount due";
(M) A [and a] notice
that the customer has the opportunity to voluntarily donate money
to the bill payment assistance program, pursuant to §25.480(g)(2)
of this title (relating to Bill Payment and Adjustments);
(N) [(L)] If available to the
REP on a standard electronic transaction, the current beginning and
ending meter readings of non-interval demand recorder meters, if the
bill is based on actual kilowatt-hour (kWh) usage, including kWh,
actual kilowatts (kW) or kilovolt ampere (kVa), and billed kW or kVa,
the kind and number of units measured, whether the bill was issued
based on estimated usage, and any conversions from meter reading units
to billing units, or any other calculations to determine billing units
from recording or other devices, or any other factors used in determining
the bill, unless the customer is provided conversion charts;
(O) [(M)] Any amount owed under
a written guarantee agreement, provided the guarantor was previously
notified in writing by the REP of an obligation on a guarantee or
as required by §25.478 of this title (relating to Credit Requirements
and Deposits);
(P) [(N)] A conspicuous notice
of any services or products being provided to the customer that have
been added since the previous bill;
(Q) [(O)] Notification of any
changes in the customer's prices or charges due to the operation of
a variable rate feature previously disclosed by the REP in the customer's
terms of service document; [and]
(R) [(P)] The notice required
by §25.481(d) of this title (relating to Unauthorized Charges);[.]
(S) The date and reading of the meter at the beginning and at the end of the billing period; and
(T) On the first page of the bill in at least 12-point font the phrase, "for more information about residential electric service please visit www.powertochoose.com.";
(2) If the REP presents [has presented]
its electric service charges in an unbundled fashion, it shall use
the following terms, if applicable to the customer's bill: "demand
charge," "energy charge," "monthly charge," "transmission and distribution
service charge," and "taxes and other fees." These terms shall have
the following definitions: [as defined by the commission:
"transmission and distribution service," "generation service," "System
Benefit Fund," and, where applicable, "transition charge," "nuclear
decommissioning fee," and "municipal franchise fee."]
(A) Demand charge--any charge, other than a tax or other fee or a transmission and distribution service charge, that is assessed on the basis of the customer's demand;
(B) Energy charge--any charge, other than a tax or other fee or a transmission and distribution service charge, that is assessed on the basis of the customer's energy consumption;
(C) Monthly charge--any charge, other than a tax or other fee or a transmission and distribution service charge that is assessed on a monthly basis without regard to the customer's demand or energy consumption;
(D) Transmission and distribution charge--any charge that is assessed to recover solely the charges assessed by a transmission and distribution utility (TDU) for the delivery of electricity to customer over poles and wires and other TDU facilities; and
(E) Taxes and other fees--any charge that is assessed to recover taxes or fees assessed by a unit of government in connection with the provision of service to the customer.
(3) To the extent that a REP applies a charge as a separate line item on a customer's bill that is consistent with one of the terms set out in this paragraph, the term shall be used in identifying charges on customers' bills (and the definitions in this paragraph shall be easily located on the REP's website). To the extent a REP uses on a customer's bill one of the terms set out in this paragraph, the amount charged shall be consistent with the definition. To the extent a REP unbundles on a customer's bill TDU delivery charge(s) included in subparagraphs (A) - (K) of this paragraph it shall use the applicable term(s) listed in subparagraphs (A) - (K) of this paragraph and shall not include any markup in the corresponding charge. A REP may not use a different term for a charge that is defined in this paragraph. Such a charge may be shown as a sub-item for any item from paragraph (2) of this subsection or as an additional item.
(A) Advanced metering charge--A charge assessed to recover a TDU's charges for Advanced Metering Systems, to the extent that they are not recovered in a TDU's standard metering charge.
(B) Competition Transition Charge--A charge assessed to recover a TDU's charges for non-securitized costs associated with the transition to competition.
(C) Energy Efficiency Cost Recovery Factor--A charge assessed to recover a TDU's charges for energy efficiency programs, to the extent that the TDU charge is a separate charge exclusively for that purpose that is approved by the Public Utility Commission.
(D) Late Payment Penalty--A charge assessed in accordance with Public Utility Commission rules.
(E) Meter Charge--A charge assessed to recover a TDU's charges for metering a customer's consumption, to the extent that the TDU charge is a separate charge exclusively for that purpose that is approved by the Public Utility Commission.
(F) Meter re-read charge--A charge assessed to recover a TDU's charges for a customer-requested meter read.
(G) Miscellaneous Gross Receipts Tax Reimbursement--A fee assessed to recover the miscellaneous gross receipts tax imposed on retail electric providers operating in an incorporated city or town having a population of more than 1000.
(H) Nuclear Decommissioning Fee--A charge assessed to recover a TDU's charges for decommissioning of nuclear generating sites.
(I) PUC Assessment Reimbursement--A fee assessed to recover the statutory fee for administering the Public Utility Regulatory Act.
(J) Sales tax--Sales tax collected by authorized taxing authorities, such as the state, cities and special purpose districts.
(K) Transition Charge(s)--A charge assessed to recover a TDU's charges for securitized costs associated with the transition to competition.
(4) [(3)] A REP shall provide
an itemization of charges, including non-bypassable charges, to the
customer upon the customer's request. [In lieu of providing a
specific quantification of "generation service," an affiliated REP
may indicate to customers that the remainder of the bill is related
to generation services, after the itemization of non-bypassable charges
is deducted from the total bill.]
(5) [(4)] A customer's electric
bill shall not contain charges for electric service from a service
provider other than the customer's designated REP.
(6) A REP shall include on each billing statement the date that a fixed rate product will expire. If the exact date is not known, the REP may estimate the expiration date by reference to the billing cycle and month or approximate date of expiration.
(7) To the extent that a REP uses the concepts identified in this paragraph in a customer's bill, it shall use the term set out in this paragraph, and the definitions in this paragraph shall be easily located on the REP's website. A REP may not use a different term for a charge that is defined in this paragraph.
(A) Current Meter Read--The meter reading at the end of the period for which the customer is being billed;
(B) kW--Kilowatt, the standard unit for measuring electricity demand, equal to 1000 watts;
(C) kWh--Kilowatt-hour, the standard unit for measuring electricity energy consumption, equal to 1000 watt-hours; and
(D) Previous Meter Read--The reading on the beginning the period for which the customer is being billed.
(8) Notice of contract expiration may be provided in a bill in accordance with §25.475 (relating to General Retail Electric Provider Requirements and Information Disclosures to Residential and Small Commercial Customers).
(d) - (h) (No change.)
[(i) This section is effective June 1, 2004.]
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 July 31, 2009.
TRD-200903235
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: September 13, 2009
For further information, please call: (512) 936-7223
The Public Utility Commission of Texas (commission) proposes an amendment to §25.475, relating to General Retail Electric Provider Requirements and Information Disclosures to Residential and Small Commercial Customers. The amendment will implement certain provisions of Texas House Bill 1822, 81st Leg. (2009) (HB 1822) and will address customer notice of contract expiration. This rule is a competition rule subject to judicial review as specified in Public Utility Regulatory Act (PURA) §39.001(e). Project Number 37214 is assigned to this proceeding.
Shawnee Claiborn-Pinto, Retail Markets Director, Competitive Markets Division has determined that for each year of the first five-year period the amendment is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amendment.
Ms. Claiborn-Pinto has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the amendment will be the implementation of certain provisions of HB 1822 and that retail electric providers (REPs) will be required to provide to follow a consistent definition of a fixed rate product and that customers will benefit from being notified in advance of the expiration of the fixed rate product contract so that they can make informed decisions in a timely manner regarding selection of a REP for their electric service. It has been determined that implementation of this rule may have an adverse economic effect on approximately thirty small businesses or micro-businesses who are Retail Electric Providers. There may be economic costs to persons who are required to comply with the proposed section. The REPs will be required to make changes to their billing systems to include the end date of the fixed rate product on each billing statement and provide additional notice in a timely manner to residential customers prior to actual contract expiration. Currently residential customers of REPs may elect to receive REP notifications by e-mail only but this rule will require REPs to change its practices to additionally send a direct mail to these residential customers. Additionally, the REPs will incur costs to print special envelopes, separate pages, and possibly separate mailings to notify the residential customer of contract expiration. The majority of these costs are associated with the modifications to company billing systems and, are likely to vary from business to business, and are difficult to ascertain. However, it is believed that the benefits accruing from implementation of the proposed section will outweigh these costs. The commission did not consider alternatives to the rule as the rule is implementing the statute that was recently enacted.
Ms. Claiborn-Pinto has also determined that for each year of the first five years the amendment 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, Texas Government Code §2001.022.
The commission staff will conduct a public hearing on this rulemaking, if requested pursuant to the Administrative Procedure Act, Texas Government Code §2001.029, at the commission's offices located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701 on Wednesday, October 7, 2009. The request for a public hearing must be received within 30 days after publication.
Comments on the amendment may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 31 days after publication and reply comments within 45 days after publication. Sixteen copies of comments on the amendment are required to be filed pursuant to §22.71(c) of this title. Comments should be organized in a manner consistent with the organization of the rule as amended. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by, implementation of the amendment. The commission will consider the costs and benefits in deciding whether to adopt the amendment. All comments should refer to Project Number 37214.
This amendment is proposed under the Public Utility Regulatory Act, Tex. Util. Code Ann. §14.002 (Vernon 2007 & Supp. 2008) (PURA), which provides the commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction, and specifically, PURA §39.112, effective September 1, 2009, which requires a REP to provide a residential customer who has a fixed rate product with at least one written notice of the date the fixed rate product will expire; and HB 1822 §6, which requires the commission to adopt rules consistent with HB 1822.
Cross Reference to Statutes: Public Utility Regulatory Act §17.003 and 39.112.
§25.475.General Retail Electric Provider Requirements and Information Disclosures to Residential and Small Commercial Customers.
(a) Applicability. The requirements of this section
apply to retail electric providers (REPs) and aggregators, when specifically
stated, in connection with the provision of service and marketing
to residential and small commercial customers. [Not later than
five months after the effective date of this section, REPs shall conform
all electricity products and contract documents to the requirements
of this section. If a term contract is in effect on the date that
this section becomes effective, the REP is required only to provide
the notice of expiration required by subsection (e) of this section
beginning no later than five months from the effective date of this
section if the contract is still in effect at that time and is not
otherwise required to conform such contracts.]
(b) (No change.)
(c) General Retail Electric Provider requirements.
(1) - (2) (No change.)
(3) Specific contract requirements.
(A) (No change.)
(B) The start and end dates of the contract shall be
available to the customer upon request. The end date for a fixed
rate product for a residential customer shall be included on each
billing statement. If the REP cannot determine the start and end date
of the contract, the REP may estimate these dates by reference to
the billing cycle and month or approximate date. After the star date
is known, the REP's estimate of the end date shall be [The
start and end dates may be estimated if the REP cannot determine these
dates. After the start date is known, the end date may be estimated]
consistent with the TDU meter reading schedule for the customer during
the month of expiration.
(4) (No change.)
(d) (No change.)
(e) Contract expiration and renewal offers. The REP
shall send a written notice of contract expiration at least
30 days or one billing cycle [14 days
] prior to the date of contract expiration, but no more than
60 days or two billing cycles [45 days] in advance of
contract expiration for a residential customer, and at least 14
days but no more than 60 days or two billing cycles in advance of
contract expiration for a small commercial customer. The REP shall
send the notice by mail to a residential customer and shall also send
the required notice to a customer's e-mail address if available to
the REP and if the customer has agreed to send notices electronically.
The REP shall send the notice to a small commercial customer by mail
or may send the notice to the customer's e-mail address if available
to the REP and, if the customer has agreed to receive notices electronically
. Nothing in this section shall preclude a REP from offering
a new contract to the customer at any other time during the contract term.
(1) Contract Expiration.
(A) (No change.)
(B) Written notice of contract expiration shall be provided in or with the customer's bill, or in a separate document.
(i) If notice is provided with a residential customer's bill, the notice shall be printed on a separate page. A statement shall be included on the outside of the envelope sent to a residential customer's billing address by mail and in the subject line on the e-mail (if the REP sends the notice by e-mail) that states, "Contract Expiration Notice. See Enclosed."
(ii) [(i)] If the notice is provided
in or with a small commercial [the] customer's
bill, the REP must either:
(I) include a statement on the outside of the billing
envelope or in the subject line of an electronic bill that
states, "Contract Expiration Notice[;]"
or "Contract Expiration Notice. See Enclosed."; or
(II) provide on each bill the [the
last three bills the approximate] date or the billing cycle
and month that the existing contract will expire. This notice shall
be conspicuous (either by font or color) and in a location close to
the "amount due." In this case the bill rendered 30-60 days (or
one to two billing cycles) [14-45 days] before the
contract expires shall contain the notice of contract expiration requirements
in subparagraph (C) of this paragraph; or[.]
(iii) [(ii)] If notice is provided
in a separate document, a statement shall be included on the outside
of the envelope and [or] in the subject line
of the e-mail (if customer has agreed to receive official documents
by e-mail) that states, "Contract Expiration Notice. See Enclosed"
for residential customers or for small commercial customers, "Contract
Expiration Notice" or "Contract Expiration Notice. See Enclosed.[;]"
(C) A written notice of contract expiration (whether with the bill or in a separate envelope) shall set out:
(i) (No change.)
(ii) A statement in bold lettering no smaller than
12 point font that no termination penalty shall apply 14 days prior
to the date stated as the expiration date in the notice. A description
and amount of any fees or charges associated with the early termination
of a residential customer's fixed rate product that would apply before
14 days prior to the date stated as the expiration date in the notice.
No such statements are required if there is no termination fee. [
No such statement is required if the customer would not be subject
to a termination penalty under any circumstances.]
(iii) (No change.)
(iv) A copy of the EFL for the default renewal product if the customer takes no action, or if the EFL is not included with the contract expiration notice, the REP must provide the EFL to the customer at least 14 days before the expiration of the contract using the same delivery method as was used for the notice. The contract expiration notice must specify how and when the EFL will be made available to the customer.
(v) - (vi) (No change.)
(2) (No change.)
(f) Terms of service document. The following information shall be conspicuously contained in the TOS:
(1) - (6) (No change.)
(7) Contract expiration notice. For a term contract,
the TOS shall contain a statement informing the customer that a contract
expiration notice will be sent [at least 14 days] prior
to the end of the initial contract term. The TOS shall also state
that if the customer fails to take action to ensure the continued
receipt of retail electric service upon the contract's expiration,
the customer will continue to be served by the REP automatically pursuant
to a default renewal product, which shall be a month-to-month product.
(8) - (9) (No change.)
(g) - (i) (No change.)
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 July 30, 2009.
TRD-200903231
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: September 13, 2009
For further information, please call: (512) 936-7223
SUBCHAPTER B. CUSTOMER SERVICE AND PROTECTION
The Public Utility Commission of Texas (commission) proposes an amendment to §26.25, relating to Issuance and Format of Bills. The amendment will implement certain provisions of Texas House Bill 1822, 81st Leg. (2009) (HB1822), Public Utilities Regulatory Act (PURA) §§17.003(c), 17.004(a), and 17.102, pertaining to a list of defined terms common to the telecommunications industry. The proposed rule, if adopted, would require certificated telecommunications utilities (CTUs) to use specific defined terms in billing their customers. The defined terms in this amendment use "charge" to define amounts applied at the discretion of the CTU, "fee" to define amounts that are designated by a governmental agency to be used for a specific purpose, and "tax" to define amounts that are designated by a governmental agency without a designated purpose. Project Number 37215 is assigned to this proceeding.
Cliff Crouch, Retail Market Analyst, has determined that for each year of the first five-year period the section is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amendment.
Mr. Crouch has determined that for each year of the first five-year period the amendment is in effect the public benefit anticipated as a result of enforcing or administering the amendment will be that customers of CTUs will have a clearer understanding of charges on their bills. The amendment is also proposed to implement certain provisions of HB 1822. There may be economic costs to persons who are required to comply with the amendment. These costs are associated with the modifications to company billing systems and are likely to vary from business to business and are difficult to ascertain, but they are not expected to be significant. However, it is believed that the benefits accruing from the implementation of the amendment will outweigh these costs. These costs may result in an adverse economic effect on approximately 36 small businesses or micro-businesses that are incumbent local exchange companies. Additionally, there are approximately 500 competitive local exchange companies (CLECs) certificated in Texas. It is not known if all of these CLECs provide services and how many of them meet the definition of a small or micro-business, but it is expected that some of them are small or micro-businesses and will experience an adverse economic impact as a result of the amendment. The commission considered proposing a more extensive list of required terms, but concluded that benefits to customers of requiring a more extensive list would probably be outweighed by the increased implementation costs to CTUs. HB 1822 includes a deadline for adoption of rule of December 1, 2009, so the commission has not had time to conduct an extensive evaluation of the costs and benefits of various alternatives. It requests that parties that comment on the proposed rule address the question of costs and benefits of this proposal and any alternatives that are recommended in their comments.
Mr. Crouch has also determined that for each year of the first five years the amendment 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, Texas Government Code §2001.022.
The commission staff will conduct a public hearing on this rulemaking, if requested pursuant to the Administrative Procedure Act, Texas Government Code §2001.029, at the commission's offices located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701 on Wednesday, October 7, 2009. The request for a public hearing must be received within 30 days after publication.
Initial comments on the amendment may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 31 days after publication, and reply comments may be submitted within 45 days after publication. Sixteen copies of comments on the amendment are required to be filed pursuant to §22.71(c) of this title. Comments should be organized in a manner consistent with the organization of the rule as amended. All comments should refer to Project Number 37215.
The amendment is proposed under the Public Utility Regulatory Act, Tex. Util. Code Ann. §14.002 (Vernon 2007 & Supp. 2008) (PURA), which provides the commission with the authority to make and enforce rules reasonably required in the exercise of its powers and jurisdiction; and specifically, PURA §17.001, which directs the commission to adopt and enforce customer protection rules; §17.003(c), which requires the commission to require CTUs to give clear and understandable information to customers about rates and to use a list of defined terms; §17.004(a), which provides that customers are entitled to bills that are presented in clear, readable and easy-to-understand language that uses terms defined in the rules adopted under §17.003; §17.102, which directs the commission to adopt and enforce rules requiring that charges on a CTU's bill be clearly and easily identified, using terms defined in the rules adopted under §17.003; and §55.016, which authorizes the commission to enforce a requirement bills for telecommunications services provide sufficient information for customers to understand the basis and source of the charges and identify all charges.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002, 17.001, 17.003(c), 17.004(a), 17.102, and 55.016.
§26.25.Issuance and Format of Bills.
(a) Application. The provisions of this section apply
to residential-customer bills issued by all certificated telecommunications
utilities (CTUs). [CTUs shall comply with the changes required
by this section within six months of the effective date of the section.]
(b) - (d) (No change.)
(e) Bill content requirements. The following requirements apply to bills sent via the U.S. mail, or other mail service. Bills rendered via the Internet shall provide the information specified in this subsection in a readily discernible manner.
(1) - (2) (No change.)
(3) Charges must be accompanied by a brief, clear, non-misleading, plain-language description of the service being rendered. The description must be sufficiently clear in presentation and specific enough in content to enable customers to accurately assess the services for which they are being billed. Additionally, explanations shall be provided for any non-obvious abbreviations, symbols, or acronyms used to identify specific charges. The CTU shall use the terms and definitions in paragraph (7) of this subsection to the extent they apply to the customer's bill.
(4) - (6) (No change.)
(7) Defined terms.
(A) Federal excise tax--Federal tax assessed on non-usage sensitive basic local service that is billed separately from long distance service.
(B) Federal subscriber line charge--A charge that the Federal Communications Commission (FCC) allows a CTU to impose on its customers to recover costs associated with interstate access to the local telecommunications networks. The FCC does not require a CTU company to impose this charge and the CTU does not remit the charge to the federal government. The charge may be used by the CTU to pay for a part of the cost of lines, wires, poles, conduit, equipment and facilities that provide interstate access to the local telecommunications network.
(C) Federal universal service fee--A federal fee for a fund that supports affordable basic phone service to all Americans, including schools, libraries, and rural health care providers. CTUs impose this fee to cover their required support for the fund. The fee is set by the FCC.
(D) Late payment charge--A charge assessed by a CTU when payment is not received by the due date.
(E) Municipal right-of-way fee--A fee used to compensate municipalities for the use of their rights-of-way.
(F) Municipal sales tax--Sales tax assessed by a customer's city.
(G) PUC fee--A fee assessed on the gross receipts of certain telecommunications companies to defray costs incurred in the administration of the Public Utility Regulatory Act.
(H) Texas universal service fee--A state fee for a fund that supports affordable service to customers in high-cost rural areas, funds the Relay Texas service and related assistance for the hearing-disabled, and funds telecommunications services discounts for low-income customers (Tel-Assistance and Lifeline). The fee is set by the Public Utility Commission.
(I) 9-1-1 fee--A fee used to fund the 9-1-1 telephone network that allows callers to reach a public safety agency when they dial the digits "9-1-1". The amount of the fee varies by region and is set by the Texas Commission on State Emergency Communications.
(J) 9-1-1 equalization fee--A fee used to provide financial support for regions where the 9-1-1 fee does not fully offset the of 9-1-1 service. The fee is imposed on each customer receiving intrastate long-distance service. The fee is set by the Texas Commission on State Emergency Communications.
(f) (No change.)
(g) Effective date. The amendments to this section adopted in 2009 are effective (90 days after adopted by the commission).
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 July 30, 2009.
TRD-200903227
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: September 13, 2009
For further information, please call: (512) 936-7223