Control Number : 35533 Item Number : 22 Addendum StartPage : 0
PROJECT NO. 35533 PUC RULEMAKING RELATING PUBLIC UTILITY COMMISWQN TO PREPAID SERVICE OF TEXAS _ ^ ^/ STAFF STRAWMAN RULE ` ^.. The Public Utility Commission of Texas ( commission) provides for public comment the following draft of a new 25.499 Retail Electric Service Using an Advanced Payment Arrangement Without a Home Device. This section is intended to apply to all products that require payment in advance of service and allow payment more frequently than twice per month unless that product is operating under the rules of 25.498. Comments on the draft new sections (16 copies) may be submitted to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, PO Box 13326, Austin, Texas 78711-3326, before 3 PM CST Tuesday, January 12, 2010 and reply comments before 3 PM CST Tuesday, January 19, 2010. Comments should be organized in a manner consistent with the organization of the draft rules. The commission invites specific comments regarding the costs associated with, and benefits that will be gained by implementation of the draft sections. The commission is seeking comments on the proposed rule, as well as comments on the following questions, which may result in changes to the proposed or amended rules:
Question 1. Should products offered to customers under this rule as "prepaid" be transitioned to a product with a HAN device under 25.498 once an advanced meter is installed at the premise? Question 2. What is a reasonable amount of time for a REP to receive historical and current consumption for the premise from the TDU to assist in estimating usage? All comments should refer to Project Number 35533.
,a 25.499 Retail Electric Service Using an Advanced Payment Arrangement Without a Home Device (a) Application. This section applies to a retail electric provider (REP) that offers retail electric service requiring payment in advance, except that it does not apply to prepaid service provided under 25.498. (b) Definitions. (1) Prepaid Service - service that is provided to a customer under 25.498. (c) Requirements for retail electric service using an advanced payment arrangement. (1) A retail electric service requiring payment in advance shall include a means by which the customer may make payments for service at the customer's premises by phone, internet, or other means that can be accomplished in the premises, or at a location near the customer's premises. If the REP or agent receiving payment charges a payment fee, the fee shall not exceed $5.00 per payment. A retail electric provider (REP) that serves a customer on a retail electric service under this section shall: (A) permit a customer to make payments as required to maintain service, not less frequently than weekly; (B) communicate to the customer, on a regular basis but no less than every two weeks, the customer's estimated current balance, the time and date, and estimated number of days of paid electric service remaining based on customer's most recent usage or estimated usage; and (C) when a customer makes a payment, provide to the customer in writing or in electronic format, a receipt or confirmation of payment (or a confirmation code that provides access to), the customer's account number, or electric service identifier (ESI ID), payment amount, and current debit or credit balance. (2) In lieu of a regular communication to a customer under paragraph (2)(B) of this subsection, a REP may communicate the customer's estimated current balance, the time and date, and estimated number of days of paid electric service remaining in response to a request from the customer for this information. A communication provided in response to a customer request shall be made by the REP no later than 5:00 p.m. of the day following the day of the request. (3) Communications required under this subsection shall be consistent with 25.473, relating to non-english language requirements. (4) A REP shall cooperate with energy assistance agencies to facilitate the provision of energy assistance payments to requesting eligible customers, and shall provide upon request any information necessary including the payment summary in subsection (f)(12). 25.499--1
A (d) Enrollment disclosures. In addition to meeting the requirements of 25.474, a REP offering service requiring payment in advance shall provide to the customer the information specified in this subsection at the time of enrollment, as a part of the contract documents and delivered in accordance with 25.474: (1) Details of the service requiring payment in advance, including but not limited to: (A) how and when payments may be made; (B) how and when account statements will be provided to the customer; (C) (D) (E) if consumption is estimated for any purpose, how it is estimated; if the customer may receive a notice requiring the customer to make a payment to continue receiving service, how such statements will be delivered and how long the customer will have to make the payment after receiving the notice; how and when information on the customer's estimated current balance, the time and date, and estimated number of days of paid electric service remaining will be communicated to the customer; and (F) the circumstances in which the customer may receive a disconnection notice. (2) A REP offering service requiring payment in advance shall provide to the customer a statement of the amount of any deposit required to initiate service, the purpose of the deposit, the circumstances in which a deposit will be returned, whether and when the deposit may be applied to the account, whether interest will be credited or paid on the deposit, and whether any fees will be taken out of the deposit and if so, for what reasons. (3) If the REP quotes the customer a fixed cost for service for any period, it shall provide details on the price per kwh, the number of kwh the fixed cost is based on, and a statement as to whether the cost will change and under what circumstances. (4) A REP offering service requiring payment in advance shall provide to the customer a statement of whether interest that will be credited or paid to the customer on amounts that have been paid in advance. (5) A REP offering service requiring payment in advance shall provide the customer an Electricity Facts Label (EFL), in accordance with this section. (6) The disclosures required by paragraphs ( 1)-(5) of this subsection shall be set out in the TOS for the service. (7) A REP offering service requiring payment in advance shall comply with the provisions of 25.475 (a)-(f) and (h)-(i). (8) A REP offering service requiring payment in advance is not subject to 25.475(g) but shall provide customers an EFL in accordance with subsection (f) of this section. (9) The three day rescission period in 25.475(f) shall commence when service to the customer is initiated, not when terms of service document is received by the customer. 25.499--2
(e) Payments and account statements. (1) The rate (including all charges excluding taxes and gross receipts reimbursement) for service requiring payment in advance may not be higher than the current rate for the provider of last resort. (2) REPs providing service requiring payment in advance shall provide account statements to customers in accordance with this section and may issue an account statement requiring payment based on expected usage. A REP providing service under this section may issue an account statement more frequently than monthly. (3) The REP shall issue an account statement at least monthly, based on the meter reading. (4) Each customer's account statement 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 commission; (B) A toll-free telephone number, in bold-face type, which the customer can call during specified hours for inquiries and to make complaints to the REP about the account statement; (C) A toll-free telephone number that the customer may call 24 hours a day, seven days a week, to report power outages and concerns about the safety of the electric power system; (D) The service address, electric service identifier (ESI), and account number of the customer; (E) The service period for which the account statement is rendered; (F) (G) (H) (I) (J) (K) (L) (M) (N) The date on which the account statement was issued; The payment due date of the account statement and, if different, the date by which payment from the customer must be received by the REP to avoid a late charge or other collection action; The customer's consumption of electricity for the service period; The balance from the preceding account statement and any credits and debits to the customer's account since the last account statement was REP's rendered; The current charges for electric service (which shall be consistent with the disclosure in the customer's terms of service documents), exclusive of applicable taxes; The identification and itemization of charges other than for electric service as disclosed in the customer's terms of service document; 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 (which shall be consistent with the disclosure in the terms of service documents); The total current charges; The total amount that must be paid by the customer to continue receiving service; 25.499--3
G (5) (6) (7) (0) If the customer is on a level or average payment plan, the payment due under the level or average payment plan; (P) 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); (Q) 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); (R) A conspicuous notice of any services or products being provided to the customer that have been added since the previous account statement; (S) 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; (T) The notice required by 25.481(d) of this title (relating to Unauthorized Charges); and (U) If applicable, a statement in writing that indicates that the customer is receiving the LITE-UP Discount pursuant to 25.454 of this title (relating to Rate Reduction Program). An account statement issued after an actual meter reading shall include, if the information is available to the REP on a standard electronic transaction, the current beginning and ending meter readings and the actual kilowatts (kw) or kilovolt amperes (kva) billed metered. If the account statement includes an amount that must be paid for the customer to continue receiving service that is based on estimated consumption, the statement shall include a notice that the consumption is estimated and the number of kwh used for the estimate. An account statement shall include a separate calculation of the average unit price of the electric service for the current billing period, labeled, "The average price for electric service." This calculation shall reflect all fixed and variable recurring charges, but not include any nonrecurring charges or credits, expressed in cents per kilowatt-hour rounded to the nearest one-tenth of one cent. A REP that requires the customer to make advanced payments based on estimated charges, in order to initiate electric service or continue receiving service, shall provide the customer a reasonable estimate, based on its charges for electricity service, all fees, and non-recurring charges and a reasonable estimate of the consumption for the period covered by the estimate. In estimating future consumption, the REP shall use any information that is readily available to improve the accuracy of the estimate, including historical consumption in the premises and actual consumption by the customer in the premises. A REP may not provide a revised estimate to a customer unless it has additional consumption information on which to base the revised estimate. 25.499--4
^ (8) Upon termination of service, the REP shall true-up the account and issue a final statement to the customer within two business days of receipt of the final meter read, reflecting all credits and debits to the account. If the final true-up results in a credit to the customer, the REP shall pay the credit to the customer with the final statement. If the final true-up results in a balance owed by the customer, the REP shall issue a final statement. (9) The REP may collect a deposit subject to 25.478, except the calculation of the amount of the deposit described in 25.478 will not apply. Deposits for customers receiving advance pay retail electrical service shall not exceed $50. (10) The REP shall not charge any fee for initiating service or setting up the account as an advance payment service and shall not charge any fee for terminating service, except that it may assess a charge for early termination of a service for a fixed term (which shall be consistent with the disclosure in the terms of service documents). (11) If the REP has the capability to receive payment and credit the customer's account for payment at all times (24 hours a day, 7 days a week), then the due date for a payment shall be not less than five days after issuance of an account statement. If the REP does not have such capability, then the due date for a payment shall not be less than 10 days after issuance of an account statement. (A) An account statement sent by mail is considered to be issued on the issuance date stated on the bill or the postmark date on the envelope, whichever is later. (B) An account statement sent by electronic mail or other telecommunications methods is considered to be issued on the date the message is sent. The REP shall include a dispatch date on account statements issued by electronic mail and shall establish a means for recording the date of issuance of account statements issued by other methods. (C) A payment for electric service is delinquent if not received by the REP or at the REP's authorized payment agency by the close of business on the payment due date. If the payment due date falls on a holiday or weekend and the REP does not have the capability to accept payments and credit customer's account so that service is not interrupted during these weekends and holidays, then the due date shall be the next business day after the stated payment due date. (D) A bill issued to a state agency, as defined in Texas Government Code, Chapter 2251, shall be due as provided in Chapter 2251. (12) A REP shall maintain records necessary to produce a summary of a customer's electric charges, usage, and payment for the most recent 24 months. (13) Pursuant to 25.472(b) of this title (relating to Privacy of Customer Information), within one business day of receiving a request from a customer or an energy assistance agency, a REP providing advance pay 25.499--5
0 retail electric service shall provide a summary of electric charges showing the customer's electric payments and usage for the duration of the customer's service with the REP or one year, whichever is shorter. This information shall be provided free of charge to an energy assistance agency. (f) Electricity Facts Label. The EFL shall be unique for each product offered and shall include the information required in 25.475(g) of this title (relating to General Retail Electric Provider Requirements and Information Disclosures to Residential and Small Commercial Customers) and the additional information required by this subsection. Nothing in this subsection precludes a REP from charging a price that is less than its EFL would otherwise provide. (1) The pricing information for the product shall include the number of days a payment of $20, $50, $100, and $200 can be expected to last at monthly usage levels of 500 kwh, 1,000 kwh, and 2,000 kwh. (2) The EFL shall state: (A) how and when payments may be made; (B) how and when account statements will be provided to the customer; (C) if the customer may receive a notice requiring the customer to make a payment to continue receiving service, how such statements will be delivered and how long the customer will have to make the payment after receiving the notice; and (D) the circumstances in which the customer may receive a disconnection notice. (3) REPs shall use the following format for the EFL with the pricing chart and disclosure chart shown. The additional language is for illustrative purposes. It does not include all reporting requirements as outlined above. Each EFL shall be printed in type no smaller than ten point font, unless a different font size is specified in this section, and shall be formatted as shown in this paragraph: Electricity Facts Label (EFL) {Name of REP}, {Name of Product}, {Service area (if applicable)}, {Date} 25.499--6
a Average monthly 500 kwh 1,000 kwh 2,000 kwh use Average price {x.x} {x.x} {x.x} per kwh Average number of days amount paid will last Amount paid At usage of 500 kwh/month At usage of 1,000 kwh/month At usage of 2,000 kwh/month $20 X days X days X days $50 X days X days X days $100 X days X days X days $200 X days X days X days {If applicable) On-peak {season or time}: {xxx} (If applicable) Average on-peak price per kilowatt-hour: {x.x} {If applicable) Average off-peak price per kilowatt-hour: {x.x} {If applicable) Potential surcharges corresponding to the given electric service. {If variable that does not change within a defined percentage} This price is the price that will be applied during your first billing cycle; this price may change in subsequent months at the sole discretion of {insert REP name). {If residential) Please review the historical price of this product available at {insert website address and toll-free number). {If variable that changes within a defined percentage) This price is the price that will be applied during your first billing cycle; this price may increase by no more than {insert percentage) percent from month-to-month. {If residential) Please review the historical price of this product available at {insert website address and toll-free number}. See Terms of Service statement for a full listing of fees, deposit policy, and other terms. 25.499--7
1 n Tyne used in this format Title: 12 point Headings: 12 point boldface Body: 10 point (4) A REP shall assign an identification number to each version of its EFL, and shall publish the number on the EFL. (g) Disconnection of electric service. Except for subsection (k)-(m), 25.483 of this title (relating to Disconnection of Service) applies to retail electric service requiring payment in advance. (1) In addition to the reasons for which a customer's service may be disconnected with prior notice, as set out in 25.483(c) and (d), a REP may disconnect a customer's service for failure to make an advance payment for service, consistent with this section and the disclosure in the terms of service documents. (2) A disconnection notice for nonpayment shall: (A) be a notice with a stated date of disconnection with the words "disconnection notice" or similar language prominently displayed. The REP may send the disconnection notice concurrently with an account statement or a request for a deposit; 25.499--8
9 4 (B) (C) (D) be delivered by the method that the contract documents identify as the means of delivering account statements; have a disconnection date that is not a holiday, weekend day, or day that the REP's personnel are not available to take payments, and is not less than five days after the notice is issued, if the REP has the capability to receive payments on a 24-hour a day, sevenday a week basis, or not less than seven days, if the REP does not have this capability; include a statement notifying the customer that if the customer needs assistance paying the bill by the due date, or is ill and unable to pay the bill, the customer may be able to make some alternate payment arrangement, establish a deferred payment plan, or possibly secure payment assistance. The notice shall also advise the customer to contact the provider for more information. (h) Deferred payment plans. A deferred payment plan is an agreement between the REP and a customer that allows a customer to pay a deficit balance of $50 or more that may have accrued on an account, through installments. A deferred payment plan may be established in person or by telephone, but shall be confirmed in writing by the REP and confirmation sent to the customer electronically or by U.S. mail. (1) A REP shall offer a deferred payment plan to customers, upon request, whose prepaid account balance is exhausted during an extreme weather emergency, in accordance with paragraph (5) of this subsection. (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 in accordance with paragraph (5) of this subsection. (3) For customers who have expressed an inability to pay, a REP may offer a deferred payment plan, in accordance with paragraph (5) of this subsection. (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 required by this subsection shall provide that any deferred payment shall be paid in installments as agreed upon by the REP and the customer. (6) A copy of the deferred payment plan shall be provided to the customer and: (A) (B) 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) at (insert toll-free telephone number)." In addition, where the customer and the REP's representative or agent meet in person, the representative shall read the preceding statement to the customer; may include a penalty not to exceed 5.0% for late payment, but shall not include a finance charge; 25.499--9
1'f (C) (D) (E) shall state the percentage of each payment that will be applied towards the plan; shall state the total amount to be paid under the plan; shall state that a customer's electric service will be interrupted if the customer does not fulfill the terms of the deferred payment plan; 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. (7) A REP providing electric service under this section may pursue disconnection of service if a customer does not meet the terms of a deferred payment plan. However, service shall not be disconnected until appropriate notice has been issued, pursuant to this section, notifying the customer that the customer has not met the terms of the plan or the customer's obligations to pay for service in advance. (i) Level and average payment plans. A REP shall offer a level or average payment plan to its customers who have a credit balance in their account in the amount to cover at least one month of future estimated usage. Consistent with the REP's terms of service, the REP shall bill or credit any overbilling or underbilling, as appropriate, at least once every three months. A REP may collect under-recovered costs from a customer twice annually, or upon termination of service to the customer. A REP shall refund any over-recovered amounts to customers twice annually, or upon termination of service to the customer. A REP may initiate its normal collection activity (including disconnection of service) if a customer fails to make a timely payment according to such a plan. All details concerning a levelized or average payment program shall be disclosed in the customer's terms of service document and may cover the term of the contract. (j) Service to Critical Care Customers and the Seriously Ill. If a customer or applicant provides information that the TDU has qualified such person as a critical care customer or if the customer or applicant states that disconnection of electric service will cause a person residing at the customer's residence to become seriously ill or more seriously ill, a REP shall refuse to provide advance payment service under this section. The customer may obtain service under this section by signing a waiver, provided by the REP, which states the customer understands that the electric service under this section permits disconnection with shorter notice and understands the medical risks associated with the disconnection of retail electric service. If a customer chooses not to sign such a waiver, the REP shall notify the customer of available options and make immediate arrangements to transition the customer to another product or provider in a manner that avoids a service disconnection. 25.499--10
A 9 (k) Notice of intention to offer electric service requiring payment in advance. A REP shall file with the commission and provide a copy to the Office of Public Utility Counsel, a statement of intent to provide retail electric services under this section at least 30 days prior to offering such services. The statement of intent shall include a general description of the service. When the REP begins offering the service, it shall file with the commission copies of the TOS and EFL and provide copies to the Office of Public Utility Counsel. The commission may maintain a list of REPs who have provided notice of their intent to provide advanced payment products pursuant to this section. 25.499--11