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Texas REPs Question Continuation of Non-Rate Benefits Extended To Low-Income Customers (Late Payment Fee Waivers, Deposit Installments)

November 1, 2015

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

A group of Texas retail electric providers have questioned, in light of strawman rule amendments given the forthcoming expiration of the System Benefit Fund low-income discount, whether two other benefits extended to customers qualifying for the discount should be continued.

As previously reported, strawman rule amendments would adopt new eligibility criteria to identify low-income customers eligible for late payment fee waivers and deposit installments in light of the existing criteria, eligibility for the SBF, being rendered inapplicable with the expiration of the SBF

"Given the relative maturity of the competitive retail electric market at this time, the REP Coalition believes the Commission should examine whether its rules should continue to mandate those low-income service requirements and instead allow the market to voluntarily offer those types of services to low-income customers on a competitive basis," the REPs said

"Moreover, if the Commission continues to mandate the late penalty waivers and deposit installments using the Lifeline list to determine customer eligibility, REPs will incur costs to integrate this different method of customer identification into their businesses and will possibly experience greater risk exposure and higher costs (e.g., bad debt) if the new eligibility requirements expand the pool of qualifying eligible customers. As a matter of economic principle, REPs will attempt to socialize the recovery of any higher costs resulting from the low-income mandates under the Commission's rules," the REPs said

However, consumer advocates said that with the expiration of the low-income SBF discount, the late payment fee waivers and deposit installment requirements, "are the only provisions in the market to help struggling households maintain electric service under their individual circumstances."

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