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Texas House Debates Requiring Written Notice of Increases in REP Variable Rates; Adopts Sunset Bill

March 21, 2013

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Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Texas House of Representatives yesterday considered requiring retail electric providers to provide residential customers on month to month contracts with advance written notice of any price changes which do not result from a change in law or regulation.

Specifically, as part of the sunset bill re-authorizing the PUCT (House Bill 1600), an amendment was offered to add new Subsection (e) to Section 39.112, Utilities Code, with Subsection (e) providing:

"A retail electric provider shall provide to a residential customer who has a contract with a term of 31 days or less notice of a price increase that is at the discretion of the provider at least 14 days before the date the customer will be affected by that increase. A price increase is not at the discretion of the provider if the change occurs to reflect actual changes in transmission and distribution utility charges, changes to ERCOT or Texas Regional Entity administrative fees charged to entities serving loads, or changes to federal, state, or local laws applicable to retail electric providers that result in new or modified fees or costs that are not within the retail electric provider's control."

An earlier version of the amendment would have explicitly required that such price increase notice be written. Currently, while the next month's rate must be available to a residential customer on a variable rate contract, written notice of the price is not required, and alternative communication mechanisms may be used.

The amendment proposing the new price increase notice requirement was not adopted, with 97 voting to table consideration, and 50 voting against tabling

An amendment to HB 1600 was adopted, however, to require that the PUC perform a cost-benefit analysis for any change to the electric market that is reasonably expected to add more than $100 million to annual energy costs to customers in the state.

Such cost-benefit analysis must, "analyze potential adverse effects of the proposed significant market change on retail electric providers."

The passed version of HB 1600 also grants the PUC the power to issue cease and desist orders.

HB 1600 awaits Senate action.

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