Overview

of Customer Protec1on Rules in the

Compe11ve Electric Market

February 2015

Legisla2ve adver2sing paid for by: John W. Fainter, Jr. President and CEO Associa2on of Electric Companies of Texas, Inc.
1005 Congress, Suite 600 Aus2n, TX 78701 phone 512-474-6725 fax 512-474-9670 www.aect.net

Summary of Protections in the Market for

Retail Customers
Among other requirements, REPs serving residential customers must:

Register with the PUC and meet financial

requirements set by the Commission
Communicate clearly with consumers regarding
notice of contract expiration
Demonstrate creditworthiness to purchase power to
serve its customers
Demonstrate the technical ability to supply
electricity
Maintain privacy of customer information
Not discriminate among customers
Not add charges to a customers electric bill for
services not requested by the customer
Provide a Your Rights as a Customer disclosure
Provide an Electricity Facts Label to allow for an
apples-to-apples comparison among REP offers
Make deferred payment plans available for those
expressing an inability to pay
Provide the LITE-UP discount for low-income Texans
during summer months when the discount is
available

Make Spanish-language support available to

customers
Place customer deposits in interest-bearing accounts
and return that interest to customers when the deposit
is returned
Provide notice in case of disconnection
Follow a mandated timeline for disconnection of
customers
Investigate any customer complaint within 21 days
Provide a Terms of Service Statement detailing
contract terms, cancellation penalties, deposit
requirements, fees, payment arrangement options,
how to cancel service, and other obligations of the
REP
Allow a customer to cancel a service agreement within
three federal business days after receiving the terms
of service
Allow a customer to cancel the switch upon receiving
notification that the switch will occur
Even this brief sampling of regulations highlights that
customers are protected
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Privacy of Customer Informa2on

Current rules designate which customer info is proprietary, including

Name, address, account number, type of service, historical usage, expected usage,
individual contract terms and condi2ons, price, current charges.

Current rules authorize REPs to release proprietary customer informa1on for

certain purposes
The Commission for inves2ga2on purposes
A consumer repor2ng agency as dened by the FTC (i.e., a credit bureau)
An energy assistance agency to allow customers to qualify for assistance
The registra2on agent, another REP, POLR or TDU to complete a required market
transac2on
Vendors/aliates performing services for the REP, but only with strict
conden2ality requirements (same standards as the REP)

These are the only authorized uses of proprietary customer informa1on by

REPs all other releases require a customers veriable authoriza1on or
provide customers an opt-out no1ce and provision
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Language Requirements

Customers preferred language (English OR Spanish)

Dual language (English AND Spanish)

Terms of Service documents, EFLs, bills, bill no2ces, informa2on on the availability
of new products and services, discount programs, promo2ons, and access to
customer service in English, Spanish, or the language used in the marke2ng of
service, as designated by the applicant or customer

Your Rights As A Customer documents, enrollment no2ca2on (provided by

ERCOT) and disconnec2on no2ces

Other languages

If a REP markets in a language other than English or Spanish, then that other
language subs2tutes for Spanish in the dual language requirements
If any por2on of an ad or contract document is translated into another language,
then all por2ons must be translated into that language
REPs may include a single statement advising how to obtain the adver2sement/
document in a dierent language

Customer Protec2ons Against Refusal of

Service

Unacceptable reasons to refuse service:

Delinquency in payment by a previous occupant

Failure to pay any charge unrelated to electric service
Failure to pay a bill containing more than 6 months of underbilling
Failure to pay unpaid bill of another customer at that same address
(except in cases of fraud)
Any reason that is discriminatory under PUC Rules

Acceptable reasons for refusal of service:

Inadequate facili2es
Intent to deceive
Indebtedness to REP
Failure to pay guarantee
Failure to comply with credit requirements
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Credit and Deposit Protec2ons

Ways for customer to establish sucient credit:

Service with a REP or an electric u2lity some2me during the past two years with no
delinquencies
Sa2sfactory credit ra2ng
65 years of age or older with no current delinquency in payment
Vic2m of family violence and evidence of such
Medically indigent and evidence of such

Deposit criteria:

Can be required if customer cannot establish sucient credit

Limits total amount of deposits to greater of 1/5 of es2mated annual billings or
sum of es2mated billings for next two months
REPs must pay interest if deposit kept for more than 30 days
REPs must return deposits afer 12 months of 2mely payment

Shopping for Service:

Finding the Electricity Facts Label

Visit a REPs website or a shopping website such as Power to Choose

and search for service. Click Fact Sheet to see the Electricity Facts
Label for a product

Informa2on Found on the

Electricity Facts Label

Electricity Facts Label

Reliant Energy Retail Services, LLC
Reliant Conservation 12 plan
Oncor Electric Delivery service area
Issue Date: 01/22/2015
Average monthly use:
Average price per kWh:

Electricity
price

Other Key
Terms and
questions

500 kWh
8.6

1000 kWh
8.0

2000 kWh
9.5

This price disclosure is based on the following components:

per billing cycle
Base Charge: $0.00
Energy Charge: (0 to 1000 kWh) 4.2 per kWh
Energy Charge: (> 1000 kWh) 7.7 per kWh
Oncor Electric Delivery Charges: $5.25 per billing cycle and 3.3156 per kWh
Oncor Electric Delivery Charges include all recurring charges passed through without mark-up.
This price disclosure is an example based on average prices - your average price for electricity service will
vary according to your usage. The price you pay each month will consist of the Base Charge, Energy
Charge, and Oncor Electric Delivery Charges.

See Terms of Service statement for full listing of fees, deposit policy, and other terms.
Type of Product

Fixed Rate

Contract Term

12 months
Yes. $150. Applies through the end of the contract
term. This fee does not apply if the customer moves,
and provides a forwarding address and other evidence
that may be requested to verify that the customer
moved.

Do I have a termination fee or any fees associated

with terminating service?

Price and how its

calculated based on how
much power the customer
uses

Disclosure regarding
addi2onal terms of service
such as fees and deposits
not covered in the
Electricity Facts Label
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Electricity
price

This price disclosure is based on the following components:

per billing cycle
Base Charge: $0.00
Energy Charge: (0 to 1000 kWh) 4.2 per kWh
Energy Charge: (> 1000 kWh) 7.7 per kWh
Oncor Electric Delivery Charges: $5.25 per billing cycle and 3.3156 per kWh
Oncor Electric Delivery Charges include all recurring charges passed through without mark-up.
This price disclosure is an example based on average prices - your average price for electricity service will
vary according to your usage. The price you pay each month will consist of the Base Charge, Energy
Charge, and Oncor Electric Delivery Charges.

Informa2on Found on the

Electricity Facts Label
Other Key
Terms and
questions

See Terms of Service statement for full listing of fees, deposit policy, and other terms.
Type of Product

Fixed Rate

Contract Term

12 months
Yes. $150. Applies through the end of the contract
term. This fee does not apply if the customer moves,
and provides a forwarding address and other evidence
that may be requested to verify that the customer
moved.

Do I have a termination fee or any fees associated

with terminating service?
Can my price change during the contract period?

Disclosure
Chart

If my price can change, how will it change and by

how much?

What other fees may I be charged?

Is this a pre-pay or pay in advance product?
Does Reliant purchase excess distributed
renewable generation?
Renewable Content

Yes
The price can change to reflect actual price changes
that are allowed by Public Utility Commission rules
due to changes in law or regulatory charges after the
Issue Date.
Fees not included in the price above: Disconnect
Notice Fee: $10; Returned Payment Charge: $25;
Disconnect Recovery: $25; Service Processing Fee: up
to $5.95; Late Payment Penalty: 5% of past due
balances; Information on other non-recurring fees is
available in the pricing section of your Terms of
Service.
No
Yes
This product is 6% renewable.

The statewide average for renewable content is 11%.

Statewide average for renewable content
Reliant, PO Box 3765, Houston, TX, 77253
reliant.com, e-mail: service@reliant.com, phone: 1-866-RELIANT, 24 hours a day / 7 days a week
PUCT Certificate Number #10007

R1F00110231931a

Can be xed, variable or

indexed rate
Length of contract
Mid-contract termina2on
fee and how its applied
Reasons the rate could
change, such as changes in
regulatory charges
Disclosure of other fees,
such as returned payment
charges
Pre-paid product
disclosure
Amount of renewable
genera2on used for this
product, and comparison
with statewide average

Bill Format Requirements

Requires bills issued monthly unless customer and REP agree to a

dierent arrangement
Species content of bills and terminology
Species reten1on requirements for billing records
Allows an outstanding balance or credit on a previous account to be
transferred to the customers current account.

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Process for Resolving Billing Disputes

REP must inves1gate, respond to customer, and inform customer of

PUC complaint process
All overbilling must be corrected, with interest if not remedied within
3 billing cycles
Underbilling correc1ons limited to 180 days, unless caused by meter
tampering or meter error.
Requires REPs to oer deferred payment plans for underbilling of $50
or more.

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Disconnec2on Requirements

Prohibi1ons on disconnec1on

Customers with special protec1ons regarding disconnec1on

During extreme weather emergencies

Energy assistance customers for whom REP has received a pledge (45 days for
agency to fulll pledge)
Failure to pay certain charges (e.g., not for electric service, underbillings of more
than 6 months, disputed charges pending resolu2on, etc.)

Cri2cal Care and Chronic Condi2on Residen2al Customers

Master-metered apartment complexes

Acceptable reasons to request disconnec1on

Non-payment of invoice or deferred payment plan

Meter Tampering
Failure to pay deposit
Failure by guarantor to pay amount guaranteed

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Poten2al Fines for Companies Viola2ng

Customer Protec2on Rules

Class C Viola1ons (up to $1,000/occurrence/day) include repor2ng infrac2ons,

such as failure to 2mely inves2gate a customer complaint, and viola2ons of the
no-call list

Class B Viola1ons (up to $5,000/occurrence/day) include any viola2on not

specically listed as Class C or Class A

Class A Viola1ons (up to $25,000/occurrence/day) include infrac2ons related

to:

The wholesale electric market, including the ERCOT protocols

Electric service quality standards or reliability standards
The code of conduct between electric u2li2es and their compe22ve aliates
Prohibited discrimina2on in the provision of electric service
Improper disconnec2on of electric service
Fraudulent, unfair, misleading, decep2ve, or an2compe22ve business prac2ces
Conduc2ng business subject to the jurisdic2on of the commission without proper
authoriza2on
A viola2on commiled by ERCOT
A viola2on that creates an imminent or poten2al hazard to public health or safety

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 Web: AECT.net

Twi\er: twi\er.com/AECTnet

Facebook: AECT Advocacy

Email: info@aect.net

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