HBA-KDB H.B. 2661 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2661 By: Turner, Sylvester State Affairs 4/2/2001 Introduced BACKGROUND AND PURPOSE Providing added protections for low and moderate income citizens as Texas approaches a deregulated electric market is a critical and valid concern. Many of these citizens, very often families, spend a large percentage of their income to provide necessities such as clothing, shelter, utilities, and transportation. A recent poll of Texans indicated that citizens earning $10,000 a year or less harbored the greatest concerns about restructuring. Thus, ensuring that Texas's deregulated electric market considers these low income citizens allows for responsible and prudent public policy. House Bill 2661 entitles a customer to be protected from misleading or deceptive advertising relating to electric rates, services, or fees, prohibits discrimination in the marketing of electric service, prohibits late fees from being implemented on a customer's bills, and authorizes the Office of Public Utility Council or any retail customer to request an adjustment of the fuel factor portion of the price to beat to keep in accord with changes in natural gas prices. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking is expressly delegated to the Public Utility Commission in SECTION 4 of this bill. ANALYSIS House Bill 2661 amends the Utilities Code to provide that an electric customer is also entitled to be protected from misleading or deceptive advertising relating to electric rates, services, or fees. The bill prohibits a retail electric provider, power generation company, aggregator, or other entity that provides electric service from discriminating in the marketing of electric service to any customer because of race, creed, color, national origin, ancestry, sex, marital status, lawful source of income, disability, or familial status. The bill prohibits the Public Utilities Commission (PUC) from adopting a rule implementing provisions in relation to marketing or providing electric service that directly or indirectly authorizes any level of prohibited discrimination. A PUC rule prohibiting discrimination against a customer is repealed on September 1, 2001, and the bill requires the PUC to adopt new rules as soon as possible. The bill provides that, except in cases of extreme weather, medical emergency, or nonpayment for related services, the PUC rules in effect on August 31, 1999, relating to the disconnection of a retail customer by an electric utility apply to disconnection of a retail customer by a retail electric provider. The bill prohibits such a provider from imposing a penalty against a retail customer who does not pay the customer's bill when due. The bill authorizes the Office of Public Utility Counsel (OPUC) or a retail customer, in addition to an affiliated retail electric provider, to request that the PUC adjust the fuel factor not more than twice a year if such a provider, the OPUC, or a retail customer demonstrates that the existing fuel factor does not adequately reflect significant changes in the market price of natural gas and purchased energy used to serve retail customers. EFFECTIVE DATE September 1, 2001, except that the provision that prohibits a retail electric provider from imposing a penalty against a retail customer who does not pay the customer's bill when due is effective on January 1, 2002.