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Texas Staff File Strawman Concerning Elimination of System Benefit Fund, Retention of Benefits to REP Customers Not Dependent on SBF Funding

October 20, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

Staff of the Public Utility Commission of Texas have filed a strawman proposal to conform PUC Substantive Rules to HB 1101, which requires the elimination of the System Benefit Fund (SBF) balance.

Staff's strawman proposes to delete Subchapter Q, Chapter 25, Texas Administrative Code, which contains sections associated with electric low-income discounts and other programs funded by the SBF (including §§25.451, 25.453, 25.454, 25.455, and 25.457).

The strawman also proposes a new §25.499, to consider whether to retain provisions for benefits from §25.454 that are not dependent on SBF funding. These additional benefits include late penalty waivers and deposit installment allowances, pursuant to §25.480(c) and §25.478(e)(3), respectively.

As a result of the elimination of the SBF (and thus funding for the low-income discount program), customers will no longer be identified as eligible for late penalty waivers and deposit installment allowances by way of their eligibility for the low-income discount. Therefore, to maintain a process for determining eligibility, the strawman suggests language to incorporate the criteria for identifying eligible low-income customers associated with the Lifeline Discount Program described in §26.412.

The strawman would preserve the current process of the exchange of customer lists between the Low-Income Discount Administrator (LIDA) and REPs to determine a customer's eligibility for the non-SBF benefits.

Specifically, customers identified by LIDA as qualifying low-income customers pursuant to §26.412(d) would be eligible for the existing late penalty waivers as specified in §25.480(c) (relating to Bill Payment and Adjustment) and deposit installment benefits as specified in §25.478(e)(3) (relating to Credit Requirements and Deposits).

Nothing in the strawman is intended to impair a REP's ability to voluntarily provide additional benefits, including low-income discounts, to eligible low-income customers

The strawman also proposes to amend §§25.480(c), 25.478(e)(3), and 25.5(66) to remove references to the SBF.

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