Anderson Offers Solution for Discretionary Fee Disclosure on Prepaid Disclosure Statement

PUCT Commissioner Kenneth Anderson has filed a recommendation to list certain TDU discretionary service charges on the residential prepaid disclosure statement, but which also addresses concerns that the inclusion of such charges might distort customers' views about prepay versus post-pay pricing.

Anderson's recommendation will be addressed at today's open meeting.

On the residential prepaid disclosure statement required to be used by all REPs offering prepaid service, Anderson would require the following TDU discretionary service charges to be listed:

Standard Move-In

Priority Move-In

Out-of-Cycle Meter Read

To address concerns that listing these fees only on the prepaid disclosure statement, when such fees are not listed on the Electricity Facts Label for post-pay service, might cause customers to think the fees do not apply to post-pay service, Anderson would add the following language to the prepaid disclosure statement:

"These utility fees apply to all residential electric services provided by REPS, whether prepaid or not."

The fees would not have to be disclosed if the REP does not pass them on to the customer.

Anderson said that the listing of such charges would become moot as TDUs "zero out" discretionary service fees with the implementation of advanced meters.