Co ntro l N umber: Item Number : 13. Adde ndum Sta rtpage: 0
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1 Co ntro l N umber: Item Number : 13 Adde ndum Sta rtpage: 0
2 OPEN MEETING COVER SHEET t4.^ ^^. MEETING DATE: July 30, 2009 DATE DELIVERED: AGENDA ITEM NO.: CAPTION: ACTION REQUESTED: July 23, PROJECT NO , Rulemaking Proceeding to Adopt Common Terms Used in Billing Telecommunications and Electric Customers (Proposal for Publication) -q C7 Distribution List: Commissioners' Office (8) Central Records Featherston, David (3) Flores, Leticia Haney, Casey Hunter, Tom (2) Journeay, Stephen Lanford, Lane Mueller, Paula Renfro, Mike Tietjen, Darryl (2) Totten, Jess (3) Whittington, Pam (3) Gonzales, Adriana Claiborne-Pinto, Shawnee Ernest Garcia Nieto, Lorenzo,/3
3 Barry T. Smitherman Chairman Donna L. Nelson Commissioner Kenneth W. Anderson, Jr. Commissioner W. Lane Lanford Public Utility Commission of Texas Executive Director Rick Perry Governor Date: July 23, 2009 To: From: Subject: Chairman Barry T. Smitherman Commissioner Donna L. Nelson Commissioner Kenneth W. Anderson, Jr. Ernest Garcia, Competitive Markets Division Shawnee Claiborn-Pinto, Competitive Markets DivisionS (^ Lorenzo Nieto, Legal Division Item 31, Project No , Rulemaking Proceeding to Adopt Comm*r-err" Used in Billing Telecommunications and Electric Customers.^: 1 Attached for your review and consideration is the draft proposal for an amendment to Substantive Rule This amendment implements a HB 1822 provision to define a list of common telecommunications terms that certificated telecommunications utilities will be required to use on residential retail customer bills when applicable. If you have any questions, please contact Ernest Garcia at or Shawnee Claiborn-Pinto at N. Congress Avenue PO Box Austin, TX / Fax: 512/ web site:
4 I PROJECT NO RULEMAKING PROCEEDING TO PUBLIC UTILITY COMMISSION ADOPT COMMON TERMS USED IN BILLING TELECOMMUNICATIONS OF TEXAS AND ELECTRIC CUSTOMERS 3 4 ^ (STAFF RECOMMENDATION) 5 PROPOSAL FOR PUBLICATION OF AMENDMENT TO AND FOR 6 CONSIDERATION AT THE JULY 30, 2009 OPEN MEETING 7 8 The Public Utility Commission of Texas (commission) proposes an amendment to of this 9 title, relating to Issuance and Format of Bills and of this title, relating to Issuance and 10 Format of Bills. The amendment will implement certain provisions of Texas House Bill 1822, 11 81st Leg. (2009) (HB 1822), Public Utilities Regulatory Act (PURA) (c), (a), 12 and , pertaining to a list of defined terms common to the electric industry and Texas 13 House Bill 1799, 81St Leg. (2009) (HB 1799), PURA pertaining to notice regarding 14 customer choice information. The proposed rule, if adopted, would require electric service 15 providers to use specific defined terms in billing their customers and require that information 16 concerning the customer-information website operated by the commission be included on 17 customer bills. The defined terms in this amendment use "charge" to define amounts applied at 18 the discretion of the electric utility and the retail electric provider, "fee" to define amounts that 19 are designated by a governmental agency to be used for a specific, and "tax" to define amounts 20 that are designated by a governmental agency without a designated purpose. The amendment is 21 a competition rule subject to judicial review as specified in PURA (e). Project Number is assigned to this proceeding. ^
5 y PROTECT NO PROPOSAL FOR PUBLICATION PAGE 2 OF Ernest Garcia, Retail Market Analyst, Competitive Markets Division has determined that for 3 each year of the first five-year period the amendment is in effect there will be no fiscal 4 implications for state or local government as a result of enforcing or administering the 5 I amendment. 6 7 Mr. Garcia has determined that for each year of the first five years the amendment is in effect the 8 public benefit anticipated as a result of enforcing the amendment will be that electric customers 9 will have a clearer understanding of charges on their bills. The amendment is also proposed to 10 implement certain provisions of HB 1822-and HB There may be economic costs to 11 persons who are required to comply with the amendment. These costs are associated with the 12 modifications to company billing systems and are likely to vary from business to business and 13 are difficult to ascertain but, they are not anticipated to be significant. However, it is believed 14 that the benefits accruing from implementation of the amendment will outweigh these costs. 15 These costs may result in an adverse economic effect on approximately thirty small businesses or 16 micro-business that are retail electric providers (REPs). The commission considered proposing a 17 more extensive list of required terms, but concluded that benefits to customers of a requiring a 18 more extensive list would probably be greater than the implementation costs to electric service 19 providers. HB 1822 includes a deadline for adoption of a rule of December 1, 2009, so the 20 commission has not had time to conduct an extensive evaluation of the costs and benefits of 21 various alternatives. It requests that parties that comment on the proposed rule address the 22 question of costs and benefits of this proposal and any alternatives that are recommended in their 23 comments.
6 PROJECT NO PROPOSAL FOR PUBLICATION PAGE 3 OF Ernest Garcia, Retail Markets Analyst, Competitive Markets Division has also determined that 3 for each year of the first five years the amendment is in effect there should be no effect on a local 4 economy, and therefore no local employment impact statement is required under Administrative 5 Procedure Act (APA), Texas Government Code The commission staff will conduct a public hearing on this rulemaking, if requested pursuant to 8 the Administrative Procedure Act, Texas Government Code , at the commission's 9 offices located in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas on Wednesday, October 7, The request for a public hearing must be received within 30 days after publication Initial comments on the amendment may be submitted to the Filing Clerk, Public Utility 14 Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326, Austin, Texas , within 31 days after publication and reply comments may be submitted within 45 days 16 after publication. Sixteen copies of comments on the amendment are required to be filed 17 pursuant to 22.71(c) of this title. Comments should be organized in a manner consistent with 18 the organization of the amended rules. All comments should refer to Project Number The amendment is proposed under the Public Utility Regulatory Act, Texas Utilities Code 21 Annotated (Vernon 2007 and Supp. 2008) (PURA), which provides the Public Utility 22 Commission with the authority to make and enforce rules reasonably required in the exercise of 23 its powers and jurisdiction; and specifically, PURA , which directs the commission to -5
7 PROJECT NO PROPOSAL FOR PUBLICATION PAGE 4 OF 15 I adopt and enforce customer protection rules; (c),, which requires the commission to 2 require electric service providers to give clear and understandable information to customers 3 about rates and to use a list of defined terms; (a), which provides that customers are 4 entitled to bills that are presented in clear, readable and easy-to-understand language that uses 5 terms defined in the rules adopted under ; , which directs the commission to 6 adopt and enforce rules requiring that charges on an electric service provider's bill be clearly and 7 easily identified, using terms defined in the rules adopted under ; and , which 8 authorizes the commission to adopt and enforce rules to ensure that REPs' bills are presented in a 9 clear format and in understandable language Cross Reference to Statutes: Public Utility Regulatory Act , (c), (a), and
8 PROJECT NO PROPOSAL FOR PUBLICATION PAGE 5 OF Issuance and Format of Bills. 5 1 (a) Frequency of bills. An electric utility or- retail electric provider shall issue bills monthly, 6 unless otherwise authorized by the commission, or unless service is provided for a period 7 less than one month. Bills shall be issued as promptly as possible after reading meters. 8 1 (b) Billing information. No changes. 9 (c) Bill content. Each customer's bill shall include all the following information: 10 (1) if the meter is read by the electric utility, the date and reading of the meter at the 11 beginning and at the end of the billing period; 12 (2) the due date of the bill, as specified in of this title (relating to Bill Payment 13 and Adjustments); 14 (3) the number and kind of units metered; 15 (4) the applicable rate schedule and title or code should be provided upon request by the 16 customer; 17 (5) the total amount due after addition of any penalty for nonpayment within a 18 designated period. The terms "gross bill" and "net bill" or other similar terms 19 implying the granting of a discount for prompt payment shall be used only when an 20 actual discount for prompt payment is granted. The terms shall not be used when a 21 penalty is added for nonpayment within a designated period; 22 (6) the word "Estimated" prominently displayed to identify an estimated bill;
9 PROJECT NO PROPOSAL FOR PUBLICATION PAGE 6 OF 15 1 (7) any conversions from meter reading units to billing units, or any other calculations to 2 determine billing units from recording or other devices, or any other factors used in 3 determining the bill; 4 (8) any amount owed under a written guarantee contract provided the guarantor was 5 previously notified in writing by the electric utility as required by of this title 6 (relating to Credit Requirements and Deposits) (9) To the extent that a utility applies a charge to the customers' bill that is consistent with one of the terms set out in this parapraphs the terni shall be used in identifying charges on customers' bills, and the definitions in this paragraph shall 10 be easily located on the utility's website. A utility may not use a different tenn 11 for a charge that is defined in this paragraph (A) (B) Advance metering charge -- A charge to recover the costs of an advanced metering system; Energy Charge - Any charge, other than a tax or other fee, that is assessed on the basis of the customer's ener^y,y consumption (C) Energy Efficiency Cost Recovery Factor - A charge approved by the commission to recover the electric utility's cost of providing energy efficiency programs. (D) Fuel Charge - A charge approved by the commission for the recovery of the utility's costs for the fuel used to generate electricity. (E) Meter Number - The number assigned by the utility to the customer's meter (F) Meter Charge - A charge approved by the commission for metering a customer's consumption.
10 PROJECT NO PROPOSAL FOR PUBLICATION PAGE 7 OF 15 1 (G) Miscellaneous Gross Receipts Fee - A fee assessed to recover the 2 miscellaneous gross receipts tax imposed on utilities operating in an 3 incorporated city or town having a population of more than (H) Municipal Franchise Fee - A fee assessed to compensate municipalities 5 for the utility's use of public rights-of-way. 6 (1) Nuclear DecomissioningFee - A charge approved by the commission to 7 provide funds for decommissioning of nuclear generating sites. 8 (J) PUC Assessment - A fee assessed to recover the statutory fee for 9 administering, the Public Utility Regulatory Act. 10 (K) Sales tax - Sales tax collected by a customer's city; (10) To the extent that a utility uses the concepts identified in this paragraph in a 13 customer's bill, it shall use the term set out in this paragraph, and the definitions 14 in this paragraph shall be easily located on the utility's website. A utility may not 15 use a different term for a charge that is defined in this paragraph. 16 (A) Current Meter Read - The meter reading at the end of the period for which 17 the customer is being billed; 18 (B) kw - Kilowatt, the standard unit for measuring electricity demand, equal 19 to 1000 watts; 20 (C) kwh - Kilowatt-hour. the standard unit for measuring electricity energy 21 consumption, equal to 1000 watt-hours; and 22 (D) Previous Meter Read - The reading on the beginning the period for which 23 the customer is being billed. ^
11 PROJECT NO PROPOSAL FOR PUBLICATION PAGE 8 OF 15 1 (d) Estimated bills. (No change) 2 (e) Record retention. (No change) 3 (f) Transfer of delinquent balances. (No change) Issuance and Format of Bills. 7 (a) Application. No change. 8 (b) Frequency and delivery of bills. No change. 9 (c) Bill content. 10 (1) Each customer's bill shall include the following information: 11 (A) The certified name and address of the REP and the number of the license 12 issued to the REP by the commission; 13 (B) A toll-free telephone number, in bold-face type, which the customer can call 14 during specified hours for inquiries and to make complaints to the REP 15 about the bill; 16 (C) A toll-free telephone number that the customer may call 24 hours a day, seven 17 days a week, to report power outages and concerns about the safety of the 18 electric power system; 19 (D) The service address, electric service identifier (ESI), and account number of 20 the customer; 21 (E) The service period for which the bill is rendered; 22 (F) The date on which the bill was issued; /0
12 PROJECT NO PROPOSAL FOR PUBLICATION PAGE 9 OF 15 1 (G) The payment due date of the bill and, if different, the date by which payment 2 from the customer must be received by the REP to avoid a late charge or 3 other collection action; 4 (H) The current charges for electric service as disclosed in the customer's terms of 5 service document, e; elusiveefincluding applicable taxes,and fees labeled 6 "total current charges"; 7 I^_a separate- A calculation of the average unit price of the current charge for 8 electric service for the current billing period, labeled, "The average price 9 you paid for electric service this month." This calculation shall reflect all 10 fixed and variable recurring charges, but not include any nonrecurring 11 I charges or credits, which is expressed as a cents per kilowatt-hour amount 12 rounded to the nearest one-tenth of one cent. If the customer is on a level 13 or average payment plan, the level or average payment should be clearly 14 shown in addition to the usage-based rate; 15 1 (Jl) The identification and itemization of charges other than for electric service as 16 disclosed in the customer's terms of service document; 17 1 (KJ) The itemization and amount included in the amount due for any non- 18 recurring charge, including late fees, returned check fees, restoration of 19 service fees, or other fees disclosed in the REP's terms of service 20 document provided to the customer; (LK) The total ^uff n+ e'-arg s, balances from the preceding bill, payments made by the customer since the preceding bill and; the total amount due labeled "amount due"; ^^
13 ia PROJECT NO PROPOSAL FOR PtJBI:ICAT[ON PAGE 10 OF 15 1 LMhand-aA notice that the customer has the opportunity to voluntarily donate 2 money to the bill payment assistance program, pursuant to (g)(2) 3 of this title (relating to Bill Payment and Adjustments); 4 (NL) If available to the REP on a standard electronic transaction, the current 5 beginning and ending meter readings of non-interval demand recorder 6 meters, if the bill is based on actual kilowatt-hour (kwh) usage, including 7 kwh, actual kilowatts (kw) or kilovolt ampere (kva), and billed kw or 8 kva, the kind and number of units measured, whether the bill was issued 9 based on estimated usage, and any conversions from meter reading units to 10 billing units, or any other calculations to determine billing units from 11 recording or other devices, or any other factors used in determining the 12 bill, unless the customer is provided conversion charts; 13 (0M) Any amount owed under a written guarantee agreement, provided the 14 guarantor was previously notified in writing by the REP of an obligation 15 on a guarantee or as required by of this title (relating to Credit 16 Requirements and Deposits); 17 (PN) A conspicuous notice of any services or products being provided to the 18 customer that have been added since the previous bill; 19 (OA) Notification of any changes in the customer's prices or charges due to the 20 operation of a variable rate feature previously disclosed by the REP in the 21 customer's terms of service document; 22 (RP) The notice required by (d) of this title (relating to Unauthorized 23 Charges);
14 PROJECT NO PROPOSAL FOR PUBLICATION PAGE -1 I OF 15 1 (5) The date and reading of the meter at the beginning and at the end of the billing 2 period; and 3 LD On the first page of the bill in at least 12-point font the phrase, "for more 4 information about residential electric service please visit (2) If the REP has-presente4s its electric service charges in an unbundled fashion, it shall 7 use the following terms, if applicable to the customer's bill defined by the 8 :"demand charge," "energy charge," "monthly charge," "transmission 9 and distribution service charge," "gerrcrcrcxvirsci-s=icc," "System Be efit Fund" 10 and NW:ier-e ««.,,,'" and 11 "muneipal#rane-lriset;e ^. '"taxes and other fees." These terms shall have the 12 following definitions: 13 (A) Demand charge - any charge, other than a tax or other fee or a transmission 14 and distribution service charge, that is assessed on the basis of the customer's 15 demand; 16 (B) Energy charge - any charge, other than a tax or other fee or a transmission 17 and distribution service charge, that is assessed on the basis of the customer's 18 energy consumption; 19 (C) Monthly charge - any charge, other than a tax or other fee or a transmission 20 and distribution service charge that is assessed on a monthly basis without 21 regard to the customer's demand or energy consumption; 22 (D)Transmission and distribution charge - any charge that is assessed to recover 23 solely the charges assessed by a transmission and distribution utility (TDU) /5
15 PROJECT NO PROPOSAL FOR PUBLICATION PAGE 12 OF 15 1 for the delivery of electricity to customer over poles and wires and other TDU 2 facilities; and 3 (E) Taxes and other fees - ancharre that is assessed to recover taxes or fees 4 assessed by a unit of government in connection with the provision of service 5 to the customer. 6 7 (3) To the extent that a REP applies a charge is to the customers' bill that is consistent 8 with one of the temis set out in this paragraph, the term may be used in identifying 9 charges on customers' bills, (and the definitions in this para graph shall be easily 10 located on the REP's website). A REP may not use a different term for a charge that 11 is defined in this paragraph. 12 (A) Advanced metering charge - A charge assessed to recover a TDU's 13 charges for Advanced Metering Systems, to the extent that they are not 14 recovered in a TDU's standard metering charge. 15 (B) Competition Transition Charge - A charge assessed to recover a TDU's 16 char2es for non-securitized costs associated with the transition to 17 competition (C) Energy Efficiency Cost Recovery Factor - A charge assessed to recover a 20 TDU's charges for energy efficiency programs, to the extent that the TDU 21 charge is a separate charge exclusively for that purpose that is approved by 22 the commission. 23 (D) Late Payment Penalty - A charge assessed in accordance with of this title (relating to bill payment and adjustments) for a late payment.
16 ^5 PROJECT NO PROPOSAL FOR PUBLICATION PAGE 13 OF (E) Meter Charge - A charge assessed to recover a TDtJ's charges for metering a customer's consumption, to the extent that the TDU charge is -a separate charge exclusively for that Rlu-pose that is approved by the commission. (F) Meter re-read charge - A charge assessed to recover a TDU's charges for a customer-requested meter read. (G) Miscellaneous Gross Receipts Tax- A fee assessed to recover the miscellaneous gross receipts tax imposed on retail electric providers operating in an incorporated city or town having a population of more than (H) Nuclear Decomissioning Fee - A charge assessed to recover a TDU's charges for decommissioning of nuclear generating sites. (I) PUC Assessment - A fee assessed to recover the statutory fee for administering the Public Utility Regulatory Act. (J) Sales tax - Sales tax collected by a customer's city. (K) Transition Charge(s) - A charge assessed to recover a TDU's charges for securitized costs associated with the transition to competition. _(34) A REP shall provide an itemization of charges, including non-by-passable charges, to the customer upon the customer's request. Inlietiofpi-oviding a specific quafitifiertion, ^^ an affiliated REP may indiea4e to 21 22
17 PROJECT NO PROPOSAL FOR PUBLICATION PAGE 14 OF 15 1 (45) A customer's electric bill shall not contain charges for electric service from a service 2 provider other than the customer's designated REP. 3 (6) A REP shall include on each billing statement the date that a fixed rate product will 4 expire. If the exact date is not known, the REP may estimate the expiration date 5 by reference to the billing cycle and month or approximate date of expiration. 6 (7) To the extent that a REP uses the concepts identified in this paragraph in a customer's 7 bill, it shall use the term set out in this paragraph and the definitions in this paragraph 8 shall be easily located on the REP's website. A REP may not use a different term for 9 a charge that is defined in this paragraph. 10 (A) Current Meter Read - The meter reading at the end of the period for 11 which the customer is being billed; 12 (B) kw - Kilowatt, the standard unit for measuring electricity demand, 13 equal to 1000 watts; 14 (C) kwh - Kilowatt-hour, the standard unit for measuring electricity 15 energy consumption, equal to 1000 watt-hours; and 16 (D) Previous Meter Read - The reading on the beginning the period for 17 which. the customer is being billed (d) Public service notices. No change. 22 (e) Estimated bills. No change. 23 (f) Non-recurring charges. No change. 24 (g) Record retention. No change. /6
18 PROJECT' NO PROPOSAL FOR PUBLICATION PAGE 15 OF 15 (h) Transfer of delinquent balances or credits. No change ^^
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