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PUCT to Allow New Financial Prepaid Contracts Through October 1, 2011
April 7, 2011
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The PUCT intends to allow financial prepaid retail electric providers to continue to sign new customers through October 1, 2011, rather than the earlier effective date of amended Subst. R. 25.498 (38675).
Although Commissioners did not adopt a final version of amended Subst. R. 25.498 at yesterday's open meeting, Commissioners agreed that REPs should be allowed to sign up customers under the financial prepaid model (which under the new rule will be prohibited for all but legacy customers) through October 1, 2011, which is the date by which REPs must otherwise comply with the provisions of amended 25.498, which requires the use of an advanced meter or other customer prepayment device or system to serve all but legacy prepaid customers.
The effective date of amended 25.498 will actually be sometime in late April or early May, depending on its publication date in the state register. There had been some discussion as to whether REPs should be prohibited from signing new financial prepaid customers as of that April/May effective date, rather than the October 1, 2011 compliance deadline. However, Commissioners agreed that the October 1, 2011 date should be used as the last date by which new customers may sign up for financial prepaid service.
Questions had also been raised regarding how the ability of REPs to serve legacy financial prepaid customers should be implemented. Specifically, some financial prepaid REPs had asked that they be allowed to continue to serve their existing financial prepaid customers as these customers move to new service addresses and ESI IDs.
However, Commissioners agreed that the exemption allowing REPs to offer financial prepaid service after October 1, 2011 shall only permit a REP to continue serve an existing ESI ID that it served under a financial prepaid product as of October 1, 2011, and not any new ESI IDs, regardless of whether the new ESI ID is associated with the same customer. Commissioner Kenneth Anderson noted that allowing REPs to sign new ESI IDs after October 1, 2011 for financial prepaid service would be difficult to track, as it would be cumbersome to police whether the REP was actually serving the customer under a financial prepaid product under a prior ESI ID. Accordingly, after October 1, 2011, financial prepaid REPs may not offer financial prepaid service to any new ESI IDs regardless of whether the customer had previously been an existing financial prepaid customer.
The final issue left open remains the Prepaid Disclosure Statement, and when it must be provided to customers. Among other things, the Prepaid Disclosure Statement shall contain all fees related to prepaid service (e.g. fees for disconnection, reconnection, adding prepaid funds, etc.).
Originally, Commissioners agreed that the Prepaid Disclosure Statement shall accompany any advertising or marketing materials which list or address pricing, but REPs have expressed concern regarding the provision of the Prepaid Disclosure Statement for TV, radio, newspaper, and billboard advertisements. Commissioner Anderson will meet with REPs prior to the next open meeting, to attempt to address the REPs' concerns while ensuring the Commission's goal of an apples to apples comparison of prepaid rates, including all applicable fees, is met. Anderson said that requiring the customer to call the REP to get the information contained in the Prepaid Disclosure Statement, for television and similar ads, is not a viable solution.
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