PUCT Staff File Updated Prepay Proposal for Adoption

PUCT Staff have filed an updated recommended proposal for adoption concerning prepaid service under Subst. R. 25.498 that incorporates the consensus reached by Commissioners at the most recent open meeting (38675, see 3/25).

The revised proposal reflects the consensus that:

- The disconnection balance shall bet set at $10

- For any required connection balance, the REP may charge up to $75 plus any applicable TDU fees

- REPs shall be prohibited from signing new contracts for financial prepaid service after October 1, 2011 (the rule's effective date). Financial prepaid service may only continue for previously enrolled legacy customers during the period in which they do not have a provisioned advanced meter.

- A Prepaid Disclosure Statement listing various fees shall accompany any advertisement or other marketing materials that includes a specific price or cost for prepaid service.

- The Prepaid Disclosure Statement shall also appear on the Power to Choose site

Regarding the Prepaid Disclosure Statement, Staff's proposed amendments provide that the Commission may adopt a standard form for the disclosure statement, to better enable a prospective customer to compare offers. Staff did not yet offer specifics on the content of such a standard statement, though the Prepaid Disclosure Statement shall include an itemization of any non-recurring REP fees and charges that the customer may be charged.

Staff's revised proposal also alters the requirement that receipts for customer prepayments be in the customer's chosen language (English or Spanish). Staff proposed that this requirement not apply to situations where payment is made in person to a third-party payment location, as to require otherwise could result in a substantial reduction in third-party payment locations, to the detriment of customers using these locations.