Texas Bill Would Require Standard Application For Use By Customer Applying To Become Customer Of A Retail Provider

Bill Would Require REPs To Offer Residential Demand Response Programs, Mandated Reductions In Demand

Bill Would Require PUC To Post Information Allowing Comparison Of REPs' Rates For Purchase Of Surplus Distributed Generation

Various Bills Would Regulate REP Rates, Products

March 10, 2021

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Several additional bills impacting the Texas energy market have been filed at the Texas legislature

HB 3384 - Standard Application For New Customers Of Retail Electric Providers

HB 3384 would require development and use of a standard application for use by a person applying to become a customer of a retail electric provider

Under HB 3384, "The commission [PUC] shall develop a standard application for use by a person applying to become a customer of a retail electric provider."

Under HB 3384, "A retail electric provider may not require a person to use an application other than the standard application to become a customer of the provider."

The standard application would be published on the PUC's Power to Choose site as well as the PUC's agency website

HB 3362 - Mandating Residential Demand Response Programs From REPs; Mandated Outage Communications From REPs

HB 3362 would provide that a customer is entitled to, "receive notice from the retail electric provider that serves the customer: (A) when the independent organization certified under Section 39.151 for the ERCOT power region issues an emergency energy alert about low operating reserves to providers of generation in the power region; or (B) of imminent rolling outages and the length of time the outages are planned or expected to last."

HB 3362 would also provide that a customer is entitled to, "participation in demand response programs through retail electric providers and demand response providers."

HB 3362 would further require each retail electric provider in the ERCOT power region to create a residential demand response program to reduce the average total residential load by at least:

(1) one percent of peak summer and winter demand by December 31, 2022;

(2) two percent of peak summer and winter demand by December 31, 2023;

(3) three percent of peak summer and winter demand by December 31, 2024; and

(4) five percent of peak summer and winter demand by December 31, 2025.

Under the bill, the PUC must adopt rules concerning the REP demand response programs that:

(1) ensure that demand response participation is reasonably available to residential customers;

(2) promote the use of smart metering technology;

(3) ensure that demand response programs are capable of responding to an emergency energy alert about low operating reserves issued by the independent organization certified under Section 39.151 for the ERCOT power region;

(4) provide opportunities for demand response providers to contract with retail electric providers to provide demand response services; and

(5) ensure the program does not impact the critical needs of vulnerable populations.

HB 3470 - Comparison Site For REPs' Rates For Purchase Of Surplus Distributed Generation

HB 3470 would require that the PUC post on a website (e.g. Power to Choose), "access to easily comparable information regarding retail electric providers' offers to residential distributed renewable generation owners for their surplus electricity."

HB 3470 also provides that a distributed renewable generation owner may sell surplus electricity to a retail electric provider or electric utility under the applicable statutory section only if the owner's distributed renewable generation is rated to produce an amount of electricity that is less than or equal to the amount of electricity that the retail electric customer for whom the distributed renewable generation is installed is reasonably expected to consume annually

HB 3470 also provides that the owner of the distributed renewable generation may not necessarily be the retail electric customer for whom the distributed renewable generation is installed

HB 3335 - Subjecting Retail Electric Rates To Anti-Price Gouging Law

HB 3335 would subject retail electricity pricing to the anti-price gouging statute, as follows

HB 3335 would provide that "false, misleading, or deceptive acts or practices" include, but are not limited to, "...taking advantage of a disaster declared by the governor under Chapter 418, Government Code, or by the president of the United States by ... selling electricity as a retail electric provider under a contract that allows for the charging of prices that are at least 200 percent higher than the market average price for the four quarters immediately preceding the date of the declaration of the disaster[.]"

HB 3494 - Ban on Variable Rates For All Customers

HB 3494 would provide that, "The commission [PUC] by rule shall require a retail electric provider to offer service under a fixed-price contract."

"A retail electric provider may not offer a contract for service at a variable rate," HB 3494 states

Nothing in HB 3494 limits its applicability to residential customers

Separately, introduced HB 3370 would ban variable rates and indexed rates for residential customers only, using language substantially similar to the previously reported HB 2808

HB 3370 provides, "The commission by rule shall require a retail electric provider to offer service under a fixed-price contract. A retail electric provider may not offer a contract for service at a variable rate."

HB 3370's fixed rate requirement applies only to residential service contracts.

SB 1279 - Another Ban on Residential Real-Time Wholesale Rates

SB 1279 would provide that a retail electric provider may not offer wholesale indexed products to residential customers, with "wholesale indexed product" meaning, "a retail electric product that includes in the rates charged for electricity a direct pass through of real time settlement point prices calculated for the ERCOT power region."

State Fund For REP Bill Payment Assistance From Disaster

HB 3543 would direct the state's comptroller, "to establish a program to provide bill payment assistance using state money appropriated for that purpose to retail customers of municipally owned utilities, electric cooperatives, and retail electric providers in the ERCOT power region."

HB 3543 does not appropriate any money itself

Under HB 3543, the program must:

(1) provide assistance only for unusually high bills for services provided after February 13, 2021, and before February 19, 2021;

(2) establish criteria for determining whether a bill is unusually high;

(3) allow a customer to apply for assistance to the municipally owned utility, electric cooperative, or retail electric provider that served the customer during the time period in Subdivision (1); and

(4) require a municipally owned utility, electric cooperative, or retail electric provider that receives an application under Subdivision (3) to:

(A) submit the application to the comptroller; and

(B) provide to the customer any assistance sent by the comptroller to the utility, cooperative, or provider in response to the application.

Under the bill, the comptroller shall consult with the PUC when adopting any rules needed to implement this section.

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