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Texas Consumer Groups Seek Moratorium On Disconnections For Non-Payment
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The Texas Consumer Association and AARP Texas filed a petition at the Texas PUC to, "immediately suspend the current provisions of Substantive Rule §25.29(i),
pertaining to disconnection of electric service during extreme weather," and to, in the current rule's place, instead, "impose a total moratorium on all electric service
disconnections of residential premises for bill arrearages or lack of payment until on or after
September 15, 2023 as a public safety matter."
"We also ask that the Commission immediately
direct the state’s transmission and distribution utilities and retail electric providers to report on
the number of their current electric accounts disconnected for lack of payment, and update those
reports weekly through at least November 2023," the consumer groups said
"As the Commission is aware, Texas has been experiencing extended heat wave conditions since
mid-June, with many days when peak temperatures have exceeded 100°F and broken local heat
records. Since August is historically Texas’ hottest month, it is reasonable to expect that current
high daytime and night-time heat levels -- or worse -- could continue for at least another six
weeks or longer.
This extended heat has driven electricity use much higher for all customers fortunate enough to
have air conditioning, with increased misery for those without. Current Texas average residential
electric rates exceed 14 cents/kWh, with an average monthly residential bill of $203/month.
Customer bills will certainly be higher in these hot summer months due to the combination of
higher electricity usage and the added costs of ERCOT’s efforts to assure reliable grid operations
under unprecedented load levels. Customers are now receiving their June electric bills, but it is
unlikely that many Texans have budgeted to cover those higher bills," the consumer groups said
"The U.S. Census Bureau reported in March that 44.8% of Texans face energy
insecurity, unable to pay their energy bills without reducing their payments for other necessities
such as food, medicine or rent. This has two implications – first, that many low-income Texans
are setting their thermostats at potentially unsafe high levels to limit their upcoming electric bills,
and that millions of Texas households may already be in arrears for electric bill payment or have
already been disconnected from electric service," the consumer groups said
"During a hot Texas summer and heat wave, living in low-quality, inefficient housing with no air
conditioning or refrigeration for food and medicine could be a death sentence for seniors, young
children, medically vulnerable citizens, and others. Many households face the risk of
disconnection month after month, so an electricity disconnection moratorium is a key provision
for public health and safety," the consumer groups said
"The Commission’s current disconnection rule for extreme weather is flawed in that it applies on
a utility-specific basis and is tied to specific calendar days -- when a NWS heat advisory notice is
in place or has been in place for the past two days. This makes it difficult for a customer to
determine when a local disconnection ban is in effect and impossible to predict when the ban
might be lifted and the power could be shut off. If the disconnection moratorium is tied to a
specific end date (such as September 15 or October 1), that will reduce customer uncertainty and
stress and enable budget planning for bill repayment," the consumer groups said
"We do not know how many Texas households are already disconnected from electric service or
in arrears on bills because the Texas Commission does not require utilities or retail electric
providers to report this information. We therefore ask that the Commission immediately require
both distribution utilities and retail electric providers to report this information (with the ability
to distinguish between serving utility and REP to avoid double-counting) weekly through at least
November (when the last hot season bills will be issued and due). This will enable the
Commission and other policymakers to understand the magnitude and risk of summer bill
arrearages, utility disconnections and heat-related public morbidity and mortality rates statewide," the consumer groups said
"Once this current hot summer has passed and new disconnection data is available, we hope that
the Commission will open a rulemaking to reconsider and revise Substantive Rule §25.29(i) to
reestablish a standing moratorium on hot summer electric bill service disconnections," the consumer groups said
Docket 55286
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July 26, 2023
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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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