Overview of Customer Protection Rules in the Competitive Electric Market
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Transcript of Overview of Customer Protection Rules in the Competitive Electric Market
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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
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Summary of Protections in the Market for Retail Customers
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
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
Among other requirements, REPs serving residential customers must:
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)
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
Dual language (English AND Spanish)
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
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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
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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
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Informa2on Found on the Electricity Facts Label
Electricity Facts LabelReliant Energy Retail Services, LLC
Reliant Conservation 12 planOncor Electric Delivery service area
Issue Date: 01/22/2015
Electricity price
Average monthly use: 500 kWh 1000 kWh 2000 kWh Average price per kWh: 8.6 8.0 9.5
This price disclosure is based on the following components:Base Charge: $0.00 per billing cycle
Energy Charge: (0 to 1000 kWh) 4.2 per kWhEnergy Charge: (> 1000 kWh) 7.7 per kWh
Oncor Electric Delivery Charges: $5.25 per billing cycle and 3.3156 per kWhOncor 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.
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
Do I have a termination fee or any fees associated with terminating service?
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.
Can my price change during the contract period? Yes
If my price can change, how will it change and by how much?
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.
What other fees may I be charged?
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.
Is this a pre-pay or pay in advance product? NoDoes Reliant purchase excess distributed renewable generation? Yes
Renewable Content This product is 6% renewable.
Disclosure Chart
Statewide average for renewable content The statewide average for renewable content is 11%.
Reliant, PO Box 3765, Houston, TX, 77253reliant.com, e-mail: [email protected], phone: 1-866-RELIANT, 24 hours a day / 7 days a weekPUCT Certificate Number #10007
R1F00110231931a
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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Informa2on Found on the Electricity Facts Label
Electricity Facts LabelReliant Energy Retail Services, LLC
Reliant Conservation 12 planOncor Electric Delivery service area
Issue Date: 01/22/2015
Electricity price
Average monthly use: 500 kWh 1000 kWh 2000 kWh Average price per kWh: 8.6 8.0 9.5
This price disclosure is based on the following components:Base Charge: $0.00 per billing cycle
Energy Charge: (0 to 1000 kWh) 4.2 per kWhEnergy Charge: (> 1000 kWh) 7.7 per kWh
Oncor Electric Delivery Charges: $5.25 per billing cycle and 3.3156 per kWhOncor 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.
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
Do I have a termination fee or any fees associated with terminating service?
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.
Can my price change during the contract period? Yes
If my price can change, how will it change and by how much?
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.
What other fees may I be charged?
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.
Is this a pre-pay or pay in advance product? NoDoes Reliant purchase excess distributed renewable generation? Yes
Renewable Content This product is 6% renewable.
Disclosure Chart
Statewide average for renewable content The statewide average for renewable content is 11%.
Reliant, PO Box 3765, Houston, TX, 77253reliant.com, e-mail: [email protected], phone: 1-866-RELIANT, 24 hours a day / 7 days a weekPUCT Certificate Number #10007
R1F00110231931a
Can be xed, variable or indexed rate
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
Length of contract
Amount of renewable genera2on used for this product, and comparison with statewide average
Pre-paid product disclosure
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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
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.)
Customers with special protec1ons regarding disconnec1on
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: [email protected]