Texas Staff Recommend Adoption of Electric Subst. Rules Without Changes, Declines Changes Sought By REPs Including Critical Care Disconnect Changes

Texas PUC Staff have filed a recommended proposal for adoption that would re-adopt the existing Chapter 25 electric substantive rules as part of a periodic review and re-adoption process (Project No. 47729)

Staff did not recommend any changes to the existing rules in re-adoption

Staff did make note that certain stakeholder comments received during the re-adoption review process, and said some issues may have merit to be considered in future rulemaking proceedings

For example, ERCOT had stated in comments that the current rule in §25.43(s)(l) requires ERCOT to notify a customer transitioned to POLR by sending the customer a secured mailer and, if ERCOT has the customer’s phone number and email address, by making an automated phone call and sending an email. ERCOT recommended amending the rule to allow ERCOT to notify customers transitioned to POLR via an automated phone call and email if ERCOT has that information. A secured mailer would only be required if the customer’s phone number and email are not available. ERCOT noted that a phone call and email may be more effective than a secured mailer given the speed with which a mass transition occurs. This amendment would ultimately reduce costs for ERCOT and ultimately for customers, ERCOT said

Staff said that the comments made by ERCOT may have merit and may be considered in connection with other projects to amend rules in Chapter 25, as resources and priorities permit.

The REP Coalition had recommended that Section 25.474 be amended to add "password" to the list of permissible account access verification data because in some instances it may be a customer- preferred form of authorization. Additionally, the REP Coalition proposed clarifying the rule to permit REPs to verify customer account access without requiring full visibility of a customer’s driver’s license or government-issued identification if the REP so chooses. The list of permissible account access verification data should be amended to include the last four digits of a customer’s driver’s license or government-issued identification number.

Staff said regarding these issues that the REP Coalition’s suggestion may have merit and will be considered in connection with other projects to amend rules in Chapter 25, as resources and priorities permit.

Furthermore, the REP Coalition recommended that the rules be amended to delete §25.479(c)(1)(S), which requires REPs to include the phrase "for more information about residential service, please visit www.powertochoose.com" on the first page of residential customer bills. The REP Coalition stated that HB 1799 (adopted by the 81st Legislature) and PURA § 39.116 unequivocally state that the requirement expired on September 1, 2011.

Additionally, the REP Coalition recommended that the commission amend §25.479(h) to state that the transfer of a customer’s account balance between REPs would only apply to transfers between non-affiliated REPs. The current rule impedes customers from switching to an alternate product offered by a REP’s affiliates that may be a better value for the customer. The current rule also acts as an impediment to the potential acquisition of a REP’s book of customers when a REP wants to migrate the customers to their existing brand, as is often the case in defaults.

Staff said regarding these issues that the REP Coalition’s suggestion may have merit and may be considered in connection with other projects to amend rules in Chapter 25, as resources and priorities permit.

The REP Coalition recommended that the rules be amended to require a TDU to honor REP requests to disconnect critical care and chronic condition customers after proper notice has been provided by the REP and the safety of the customer has been certified. The REP Coalition stated that if a TDU repeatedly rejects valid disconnection requests for these customers, the TDU should assume financial responsibility for the customer. The REP Coalition further noted that §25.497(f) specifically states that critical care and chronic condition residential customers are not relieved of their obligation to pay for REP services and that a customer’s service may be disconnected pursuant to §25.483.

CenterPoint Energy Houston Electric opposed the REP Coalition recommendation on this issue, noting that a TDU must already "cease charging all transmission and distribution charges" to the REP if the TDU refuses to disconnect the REP’s critical care customer.

Staff said regarding this issue, "The commission acknowledges the comments of the REP Coalition and Centerpoint and may consider the merits of revising the rule in connection with other projects to amend rules in Chapter 25, as resources and priorities permit."

Broadly regarding all proposed changes in the Project by various parties, Staff said, "The commission appreciates the thoughtful comments on this chapter, but declines to make any changes to Chapter 25 in this rule review at this time. Some of the amendments suggested in the comments might improve the commission’s substantive rules, but would require further consideration, including additional notice and public input, before adoption."