(a) Purpose. The purpose of this section is to ensure that, as mandated by the Public Utility Regulatory Act (PURA) §39.106:
- (1) A basic, standard retail service package will be offered by a POLR or multiple POLRs at a fixed, non-discountable rate to any requesting customer in all of the Texas transmission and distribution utilities' (TDUs') service areas that are open to competition; and
- (2) All customers will be assured continuity of service if their retail electric provider (REP) defaults pursuant to subsection (n)(12) of this section and, until January 1, 2007, if their REP terminates service in accordance with the termination provisions of Subchapter R of this chapter (relating to Customer Protection Rules for Retail Electric Service).
(b) Application; termination of service for non-payment.
- (1) This section applies to REPs that may be designated as POLRs in TDU service areas in Texas. This section does not apply when an electric cooperative or a municipally owned utility (MOU) exercises its right to designate a POLR within its certificated service area. However, this section is applicable when an electric cooperative delegates its authority to the commission in accordance with subsection (p) of this section to select a POLR within the electric cooperative's service area.
- (2) POLR service for a residential or small non-residential customer of a competitive REP whose electric service is terminated for non-payment under the provisions of §25.482 of this title (relating to Termination of Contract) shall be provided by the affiliated REP for that POLR area. In the case of the territory encompassed by Sharyland Utilities, LP, the affiliated REP shall be deemed to be First Choice Power, Inc, the entity providing default service in that area. The provisions of this section do not apply to any affiliated REP serving non-paying residential and small non-residential customers of competitive REPs except as otherwise specifically stated herein. As of January 1, 2007, this paragraph will expire and REPs will not be permitted to terminate customers to POLR for any reason except pursuant to a mass transition for the reasons described in subsection (n)(12) of this section.
- (3) POLR service is intended to provide continuity of service, and is available to any requesting customer and any customer that is transitioned to POLR service consistent with this section. The POLR rate must reflect the inherent level of risk associated with POLR service. POLR service is envisioned as a temporary service and the POLR rate is not intended to be a competitive offering, but a cost and risk based offering.
- (4) For 2006, all timeframes and deadlines that pertain to the eligibility and selection of POLR providers shall be extended by one day for every day that the effective date of this section falls after June 1, 2006. The extension shall not apply to the October 15, 2006, deadline to select non-volunteering POLR providers or the December 31, 2006, end of the 2005 - 2006 POLR term.
(c) Definitions. The following words and terms when used in this section shall have the following meaning, unless the context indicates otherwise:
- (1) Basic firm service--Electric service that is not subject to interruption for economic reasons and that does not include value added options offered in the competitive market. Basic firm service excludes, among other competitively offered options, emergency or back-up service, and stand-by service. For purposes of this definition, the phrase "interruption for economic reasons" does not mean disconnection for non-payment.
- (2) Billing cycle--A period bounded by a start date and stop date that REPs and TDUs use to determine when a customer used a service.
- (3) Billing month--Generally a calendar accounting period (approximately 30 days) for recording revenue, which may or may not coincide with the period a customer's consumption is recorded through meter readings.
- (4) Large non-residential customer--A non-residential customer, at the time of the transition to POLR service having a peak demand in the previous 12-month period at or above one megawatt (MW).
- (5) Medium non-residential customer--Beginning January 1, 2007, a non-residential retail customer, at the time of the transition to POLR service having a peak demand in the previous 12-month period of 50 kW or greater, but less than 1,000 kW.
- (6) Non-discountable rate--A rate that does not allow for any deviation from the price offered to all customers within a class, except as provided in §25.454 of this title (relating to Rate Reduction Program).
- (7) Non-volunteering POLR provider--A REP that has been selected to provide POLR service consistent with subsection (j) of this section.
- (8) POLR area--The service area of a TDU in an area where customer choice is in effect, except that the POLR area for AEP-Texas Central Company shall be deemed to include the area served by Sharyland Utilities, L.P.
- (9) Provider of last resort (POLR)--A REP certified in Texas that has been designated by the commission to provide a basic, standard retail service package in accordance with this section. There may be multiple POLR providers in a TDU service area. The term POLR, when used as a noun, refers to both a volunteer POLR REP and a non-volunteer POLR provider.
- (10) Residential customer--Retail customers classified as residential by the applicable transmission and distribution utility tariff or, in the absence of classification under a residential rate class, those retail customers that are primarily end users consuming electricity for personal, family, or household purposes and who are not resellers of electricity.
- (11) Small non-residential customer--Beginning January 1, 2007, a non-residential retail customer, at the time of the transition to POLR service having a peak demand in the previous 12-month period of less than 50 kW. Prior to January 1, 2007, a non-residential retail customer having a peak demand of less than 1,000 kW.
- (12) Volunteer POLR REP--A REP that has voluntarily agreed to provide POLR service consistent with subsection (i) of this section.
(d) POLR service.
- (1) For the purpose of POLR service, beginning with the 2007 - 2008 POLR term, there will be four classes of customers: residential, small non-residential, medium non-residential, and large non-residential.
(2) The POLRs may be designated to serve any or all of the four customer classes in a POLR area. Within the customer class it is designated to serve, the POLRs shall provide service to the following customers:
- (A) Any customer requesting POLR service;
- (B) Any customer assigned to the POLR pursuant to a mass transition for the reasons described in subsection (n)(12) of this section; and
- (C) Until January 1, 2007, any customer not receiving service from its selected REP for any reason other than non-payment who is automatically assigned to the POLR.
(3) The POLRs shall offer a basic, standard POLR retail service package, which will be limited to:
- (A) Basic firm service;
- (B) Call center facilities for customer inquiries;
- (C) Standard retail billing (which may be provided either by the POLR or another entity);
- (D) Benefits for low-income customers as provided for under PURA §39.903 relating to the System Benefit Fund; and
- (E) Standard metering, consistent with PURA §39.107(a) and (b) (which may be provided either by the POLR or another entity).
- (4) A POLR and any REP affiliated with the POLR shall make the same competitive products and services available to a POLR customer as they would to a similarly-situated non-POLR customers.
- (5) The POLRs shall, in accordance with §25.108 of this title (relating to Financial Standards for Retail Electric Providers Regarding the Billing and Collection of Transition Charges), provide billing and collection duties for REPs who have defaulted on payments to the servicer of transition bonds or to TDUs.
- (6) Each POLR customer billing for residential customers shall notify the customer that other competitive products or services may be available from the POLR, a REP affiliated with the POLR, or another competitive REP, and shall include contact information for the POLR and the Power to Choose, and shall include a notice from the commission in the form of a bill insert or a bill message with the header "A Message from the Public Utility Commission" addressing why the customer has been transitioned to POLR, the continuity of service purpose and temporary nature of POLR service, the need to choose a competitive product or provider, and information on competitive markets to be found at www.powertochoose.org, or toll-free at 1-866-PWR-4-TEX (1-866-797-4839).
(e) Standards of service.
- (1) A REP who has been designated by the commission to serve as a POLR for a class in a given POLR area shall serve any customer in that class as described in subsection (d)(2) of this section.
- (2) A POLR shall serve any POLR customer, as described in subsection (d)(2) of this section, according to the Standard Terms of Service in subsection (f)(1) of this section for any POLR customer's respective customer class, except that beginning with the 2007 - 2008 POLR term, POLRs may charge a rate less than the POLR rate, if it is applied uniformly to all POLR customers. This paragraph is not intended to prohibit POLR customers from enrolling in a non-POLR product or service provided by the REP serving as a POLR or a REP affiliated with the REP serving as a POLR.
(3) A POLR shall abide by the applicable customer protection rules as provided for under Subchapter R of this chapter, except that if there is an inconsistency or conflict between this section and Subchapter R of this chapter, the provisions of this section shall apply. For the medium non-residential customer class, the customer protection rules as provided for under Subchapter R of this chapter shall be waived, except for §25.481, relating to Unauthorized Charges, §25.485(a) - (b), relating to Customer Access and Complaint Handling, and §25.495, relating to Unauthorized Change of Retail Electric Provider. In addition, the POLR shall be held to the following general standards:
- (A) The POLRs shall inform any customer transferred to it, that the POLR is now providing service to the customer and shall disclose all charges for which the customer will be responsible; and
- (B) The POLRs may not require that a customer sign up for a minimum term as a condition of POLR service, except that if the POLR offers a level or average payment plan in accordance with Subchapter R of this chapter. A residential or small or medium non-residential customer who elects to receive POLR service under such plan may be required to sign up for a minimum term of no more than six months.
(f) Customer information.
(1) The Standard Terms of Service prescribed in subparagraphs (A) - (D) of this paragraph are effective for all POLR service beginning with the 2007 - 2008 POLR term. These forms may be changed through the rulemaking process and are available in the commission's Central Records Division and on the commission's website at www.puc.state.tx.us.
- (A) Standard Terms of Service, Provider of Last Resort (POLR) Residential Service:
Attached Graphic
- (B) Standard Terms of Service, Provider of Last Resort (POLR) Small Non-Residential Service:
Attached Graphic
- (C) Standard Terms of Service, Provider of Last Resort (POLR) Medium Non-Residential Service:
Attached Graphic
- (D) Standard Terms of Service, Provider of Last Resort (POLR) Large Non-Residential Service:
Attached Graphic
- (2) The POLRs shall provide each new POLR customer the Standard Terms of Service applicable to the specific customer. Such Standard Terms of Service shall be updated as required under §25.475(d) of this title (relating to Information Disclosures to Residential and Small Commercial Customers.)
(g) General description of POLR selection process.
- (1) All REPs shall provide information to the commission in accordance with subsection (h)(1) of this section. Based on this information, the commission's designated representative shall designate REPs that are eligible to serve as POLRs in areas of the state in which customer choice is in effect, except that the commission shall not designate POLRs in the service areas of MOUs or electric cooperatives unless an electric cooperative has delegated its POLR designation authority to the commission in accordance with subsection (p) of this section.
- (2) The commission shall select REPs that will provide POLR service for two-year terms as specified in paragraph (3) of this subsection. The POLR rate shall be established under the provisions of subsection (k) of this section.
- (3) POLRs shall serve two-year terms beginning in January of each odd-numbered year. The initial term for POLR service in areas of the state where retail choice is not in effect as of the effective date of the rule shall be set at the time POLRs are initially selected in such areas.
(h) REP eligibility to serve as POLR. In each even-numbered year, beginning with 2006, the commission shall determine the eligibility of certified REPs to serve as a POLR for the term scheduled to commence in January of the next year.
- (1) All REPs shall provide information to the commission necessary to establish their eligibility to serve as POLR for the next POLR term. All REPs shall file, by July 10th, of each even numbered year, by service area, information on the classes of customers they provide service to, the number of ESI IDs the REP serves in each POLR customer class, the total number of ESI IDs in each POLR customer class, the amount of MWhs the REP serves in each POLR customer class for the annual period ending March of the current year, and the total number of MWhs sold by all REPs for each POLR customer class for the annual period ending March of the current year. ERCOT shall make the total ESI ID and total MWh data available to REPs for inclusion in the eligibility filing. All REPs shall also provide information on their technical capability and financial ability to provide service to additional customers in a mass transition scenario. Specific information received from a REP under this subsection shall be treated confidentially if it is submitted to the commission in accordance with the provisions of §22.71(d) of this title (relating to Filing of Pleadings, Documents and Other Materials). However, the commission's determination regarding eligibility of a REP to serve as POLR under the provisions of this section shall not be considered confidential information.
(2) Eligibility to be designated as a POLR is specific to POLR area and customer class. A REP is eligible to provide POLR service to a particular customer class in a POLR area, unless:
- (A) A proceeding to revoke or suspend the REP's certificate is pending at the commission, the REP's certificate has been suspended or revoked by the commission, or the REP's certificate is deemed suspended pursuant to §25.107(i) of this title (relating to Certification of REPs);
- (B) The sum of the numeric portion of the REP's percentage of ESI IDs served and percentage of MWhs served in the POLR area, for the particular class, is less than 1.0;
- (C) The commission does not reasonably expect the REP to be able to meet the criteria set forth in subparagraph (B) of this paragraph during the entirety of the POLR term;
- (D) On the date of the commencement of the POLR term, the REP or its predecessor, including a REP that has assumed the responsibilities of another REP, will not have served customers in Texas for at least 18 months;
- (E) The REP does not serve the applicable customer class, or does not have an agreement with the service area TDU;
- (F) The REP is certificated as an Option 2 REP under §25.107(d)(2) of this title;
- (G) The REP's customers are limited to its own affiliates;
- (H) A REP that files an affidavit stating that it only serves customers subject to the customer protection rules because it was picked by lottery to be a small non-residential customer class POLR for 2005 - 2006 may opt-out of eligibility for the small non-residential customer class;
- (I) A REP files an affidavit stating that it does not serve small or medium non-residential customers, except for the low-usage sites of the REP's large non-residential customers, or commonly owned or franchised affiliates of the REP's large non-residential customers may opt-out of eligibility for either, or both of the small or medium non-residential customer classes; or
- (J) The REP does not meet certain minimum financial qualifications as determined by the commission.
- (3) For each POLR term scheduled to commence in January of the next year, the commission shall publish the names of all of the REPs eligible to provide POLR service for each customer class in each POLR area. A REP may challenge its eligibility determination within five business days of the notice of eligibility by submitting to commission staff additional documentation that includes the specific data, the specific calculation, and a specific explanation that clearly illustrates and proves the REPs assertion. Commission staff shall verify the additional documentation and, if accurate, recalculate the REP's eligibility. Commission staff will notify the REP of any change in eligibility status within ten business days of the receipt of the additional documentation. A REP may then appeal to the commission through a contested case if the REP does not agree with the staff determination of eligibility. The contested status will not delay the volunteer POLR REP list or the selection of the non-volunteering POLR providers.
- (4) A REP that is serving as a POLR in accordance with this section shall submit reports not later than March 1 and September 1 of each year providing the information specified in paragraph (2) of this subsection.
- (5) A standard form may be created for use in determining REP eligibility to serve as a POLR, that REPs may use to report necessary eligibility information.
(i) Volunteer POLR REP list. Based on the information provided in accordance with this subsection and subsection (h) of this section, the commission shall post on its webpage the REPs that are willing to serve as POLR on a volunteer basis, beginning in 2006 for the 2007 - 2008 POLR term. REPs may submit an indication of their willingness to voluntarily serve as POLR, in a separate filing from the one required in subsection (h) of this section, no earlier than July 10, and no later than July 31, of each even-numbered year. This filing shall include a description of the REP's capabilities to serve additional ESI IDs as well as the REPs current financial condition in enough detail to demonstrate that the REP is capable of absorbing a mass transition of ESI IDs without technically or financially distressing the REP. Specific information received from a REP under this subsection shall be treated confidentially if it is submitted to the commission in accordance with the provisions of §22.71(d) of this title. However, the commission's determination regarding eligibility of a REP to serve as a volunteer POLR REP, under the provisions of this section, shall not be considered confidential information.
- (1) A volunteer POLR REP shall provide to the commission the name of the REP, the appropriate contact person with current contact information, which customer classes the REP is willing to serve within each POLR area, and the number of ESI IDs the REP is willing to serve by customer class and POLR area in each transition event.
- (2) A REP that has met the eligibility requirements of subsection (h) of this section shall be eligible for the volunteer POLR REP list contingent upon the additional information provided in this subsection.
- (3) A volunteer POLR REP shall not charge its POLR customers a rate higher than the POLR rate for POLR service. Any rate charged to POLR customers without the customer's affirmative choice, that is below the POLR rate, must be offered uniformly to all POLR customers. However, a volunteer POLR REP may market to its POLR customers, on a non-discriminatory basis, competitive products using a rate structure other than the POLR rate structure. A POLR and any REP affiliated with the POLR shall make the same competitive products and services available to a POLR customer as are available to similarly-situated non-POLR customers. The volunteer POLR REP, in any marketing to the POLR customer, shall make it clear that the customer has the right to switch to a different REP or take service from the volunteer POLR REP under a competitive product with a rate structure other than the rate structure set out in the POLR's Standard Terms of Service, if the POLR offers such a competitive product. A customer may agree to a long-term contract for non-POLR service with the REP serving as POLR, but the POLR REP shall not represent to the customer that agreeing to a long-term contract is the only option to avoid the POLR rate. If, based on a customer's choice, the volunteer POLR REP enrolls a customer in a competitive product or service, it shall follow the appropriate enrollment process in §25.474 of this title (relating to Selection of Retail Electric Provider). After enrolling in a non-POLR, competitive product or service, the customer shall no longer be considered a POLR customer.
(4) Upon the transition of customers to the POLRs, beginning with the 2007 - 2008 POLR term, ERCOT shall use the volunteer POLR REP list to assign customers to the volunteer POLR REPs in a non-discriminatory manner, before assigning customers to the non-volunteering POLR providers. ESI IDs, up to the total number of ESI IDs that all volunteer POLR REPs specified pursuant to paragraph (1) of this subsection, shall be allocated to the volunteer POLR REPs in the non-discriminatory fashion detailed below. A volunteer POLR REP shall not be assigned more ESI IDs than it has indicated it is willing to serve. ERCOT shall use the following methodology to ensure non-discriminatory assignment of ESI IDs to the volunteer POLR REPs. If ERCOT has not implemented an automated process to distinguish between the small and medium non-residential customer class, ERCOT shall manually bifurcate the applicable customers until an automated process is implemented. Such automated process shall be implemented no later than July 1, 2007. ERCOT shall:
- (A) Sort ESI IDs by TDU service territory;
- (B) Sort ESI IDs by customer class;
- (C) Sort ESI IDs numerically;
- (D) Sort volunteer POLR REPs numerically by randomly generated number; and
- (E) Assign ESI IDs in numerical order to volunteer POLR REPs, in the order determined in subparagraph (D) of this paragraph, in accordance with the number of ESI IDs each volunteer POLR REP indicated a willingness to serve pursuant to paragraph (1) of this subsection. If the number of ESI IDs is less than the total that the volunteer POLR REPs indicated that they are willing to serve, each volunteer POLR REP shall be assigned a proportionate number of ESI IDs, as calculated by dividing the number that each volunteer POLR REP indicated it was willing to serve by the total that all volunteer POLR REPs indicated they were willing to serve, multiplying the result by the total number of ESI IDs being transferred to the volunteer POLR REPs, and rounding to a whole number.
- (5) Each transition event shall be treated as a separate event.
- (6) A volunteer POLR REP may file a request to be removed from the volunteer POLR REP list or to modify the number of ESI IDs it is willing to serve at any time, and such a request shall be effective 30 calendar days after the request is filed with the commission. A volunteer POLR REP shall continue to serve ESI IDs previously acquired through a mass transition event as well as ESI IDs the volunteer POLR REP acquires from a mass transition event during the 30-day notice period.
- (7) ERCOT may challenge a volunteer POLR REPs eligibility. If ERCOT has reason to believe that a REP is no longer capable of performing additional volunteer POLR REP responsibilities, ERCOT shall make a confidential filing with the commission detailing the basis for its challenge. Commission staff shall review the filing of ERCOT and if commission staff concludes that the REP should no longer provide POLR service, it shall request that the REP demonstrate that it still meets the qualifications to provide the service. The commission staff may initiate a proceeding with the commission to disqualify the REP from providing POLR service. No ESI IDs shall be assigned to a volunteer POLR REP after the commission staff initiates a proceeding to disqualify the volunteer POLR REP's eligibility, unless the commission by order, confirms the volunteer POLR REP's eligibility.
(j) Non-volunteering POLR providers. The provisions of this subsection shall govern the manner in which the non-volunteering POLR providers for a given POLR area and customer class are selected and serve, beginning with the 2007 - 2008 POLR term.
- (1) The REPs eligible to serve as POLRs shall be determined based on the information provided by REPs in accordance with subsection (h) of this section.
- (2) In each POLR area, for each POLR customer class, there shall be five non-volunteering POLR providers. The non-volunteering POLR providers shall be the five eligible REPs that have the greatest market share based upon MWhs served, by customer class within the POLR area. The commission's designee shall designate the non-volunteering POLR providers by October 15, of the year preceding the POLR term, based upon the data the commission has at the time of the determination. Selection as a non-volunteering POLR provider does not effect a REPs ability to also serve as a volunteer POLR REP.
(3) In the event of a mass transition of customers to POLR service, customers shall be allocated to the non-volunteering POLR providers only after the volunteer POLR REP list has been exhausted. The customers to be transitioned to the non-volunteering POLR providers shall be allocated to the non-volunteering POLR providers in a non-discriminatory fashion, in accordance with their percentage of market share based upon MWhs served, as determined in paragraph (2) of this subsection, by POLR area and customer class. To ensure non-discriminatory assignment of ESI IDs to the non-volunteering POLR providers, ERCOT shall:
- (A) Sort the ESI IDs in excess of the allocation to volunteer POLR REPs, by TDU service territory;
- (B) Sort ESI IDs in excess of the allocation to volunteer POLR REPs, by customer class;
- (C) Sort ESI IDs in excess of the allocation to volunteer POLR REPs, numerically;
- (D) Sort non-volunteering POLR providers numerically by MWhs served; and
- (E) Assign ESI IDs in numerical order to non-volunteering POLR providers, in proportion to the percentage of MWhs served by each non-volunteering POLR provider to the total MWhs served by all non-volunteering POLR providers.
- (4) For the purpose of calculating the POLR rate for each customer class in each POLR area, a POLR EFL shall be completed by the non-volunteering POLR provider that has the greatest market share in accordance with paragraph (2) of this subsection. The POLR EFL shall be supplied to commission staff electronically for placement on the commission webpage.
- (5) Non-volunteering POLR providers may market to transitioned POLR customers to enroll the customers in competitive products or services in the same fashion and under the same conditions as described in subsection (i)(3) of this section.
- (6) Upon a request from a non-volunteering POLR provider and a showing that the non-volunteering POLR provider will be unable to maintain its financial integrity if it is allocated additional POLR customers, the commission shall relieve a non-volunteering POLR provider from the allocation of any such additional customers. The commission shall provide at least ten business days' notice and an opportunity for hearing on the request for relief. The non-volunteering POLR provider shall continue providing POLR service until the commission issues an order relieving it of this responsibility. In the event the requesting non-volunteering POLR provider is relieved of its responsibility, the commission's designee may, with 90 days notice, designate the next eligible REP a non-volunteering POLR provider, based upon the criteria in paragraph (2) of this subsection.
(k) POLR rate.
(1) The provisions of this paragraph establish the maximum POLR rate of volunteer POLR REPs and non-volunteering POLR providers beginning with the 2007 - 2008 POLR term.
(A) The POLR rate for the residential customer class shall be determined by the following formula: POLR rate (in $ per kWh) = (Non-bypassable charges + POLR customer charge + POLR energy charge) / kWh used Where:
- (i) Non-bypassable charges shall be all TDU and other non-bypassable charges and credits for the appropriate customer class in the applicable service territory, including ERCOT administrative charges, nodal fees or surcharges, replacement reserve charges attributable to POLR load, and applicable taxes from various taxing or regulatory authorities, multiplied by the level of kWh and KW used, where appropriate.
- (ii) POLR customer charge shall be $0.06 per kWh.
- (iii) POLR energy charge shall be the sum over the billing period of the actual hourly MCPEs for the customer multiplied by the level of kWh used, multiplied by 130%.
- (iv) "Actual hourly MCPE" is an hourly rate based on a simple average of the actual interval MCPE prices over the hour.
- (v) "Level of kWh used" is based either on interval data or on an allocation of the customer's total actual usage to the hour based on a ratio of the sum of the ERCOT backcasted profile interval usage data over the hour to the total of the ERCOT backcasted profile interval usage data over the customer's entire billing period.
- (vi) For each billing period, if the sum over the billing period of the actual hourly MCPEs for a customer multiplied by the level of kWh used falls below the simple average of the zonal MCPE prices over the 12-month period ending September 1 of the preceding year multiplied by the total kWh used over the customer's billing period, then the POLR energy charge shall be the simple average of the zonal MCPE prices over the 12-month period ending September 1 of the preceding year multiplied by the total kWh used over the customer's billing period multiplied by 130%. This methodology shall apply until the commission issues an order suspending or modifying the operation of the floor after conducting an investigation.
(B) The POLR rate for the small and medium non-residential customer classes shall be determined by the following formula: POLR rate (in $ per kWh) = (Non-bypassable charges + POLR customer charge + POLR demand charge + POLR energy charge) / kWh used Where:
- (i) Non-bypassable charges shall be all TDU and other non-bypassable charges and credits for the appropriate customer class in the applicable service territory, including ERCOT administrative charges, nodal fees or surcharges, replacement reserve charges attributable to POLR load, and applicable taxes from various taxing or regulatory authorities, multiplied by the level of kWh and KW used, where appropriate.
- (ii) POLR customer charge shall be $0.025 per kWh.
- (iii) POLR demand charge shall be $2.00 per kW, per month, for customers that have a demand meter, and $50.00 per month for customers that do not have a demand meter.
- (iv) POLR energy charge shall be the sum over the billing period of the actual hourly MCPEs, for the customer multiplied by the level of kWh used, multiplied by 130%, multiplied by the level of kWh used.
- (v) "Actual hourly MCPE" is an hourly rate based on a simple average of the actual interval MCPE prices over the hour.
- (vi) "Level of kWh used" is based either on interval data or on an allocation of the customer's total actual usage to the hour based on a ratio of the sum of the ERCOT backcasted profile interval usage data over the hour to the total of the ERCOT backcasted profile interval usage data over the customer's entire billing period.
- (vii) For each billing period, if the sum over the billing period of the actual hourly MCPEs for a customer multiplied by the level of kWh used falls below the simple average of the zonal MCPE prices over the 12-month period ending September 1 of the preceding year multiplied by the total kWh used over the customer's billing period, then the POLR energy charge shall be the simple average of the zonal MCPE prices over the 12-month period ending September 1 of the preceding year multiplied by the total kWh used over the customer's billing period multiplied by 130%. This methodology shall apply until the commission issues an order suspending or modifying the operation of the floor after conducting an investigation.
(C) The POLR rate for the large non-residential customer class shall be determined by the following formula: POLR rate (in $ per kWh) = (Non-bypassable charges + POLR customer charge + POLR demand charge + POLR energy charge) / kWh used Where:
- (i) Non-bypassable charges shall be all TDU and other non-bypassable charges and credits for the appropriate customer class in the applicable service territory, including ERCOT administrative charges, nodal fees or surcharges, replacement reserve charges attributable to POLR load, and applicable taxes from various taxing or regulatory authorities, multiplied by the level of kWh and KW used, where appropriate.
- (ii) POLR customer charge shall be $2,897.00 per month.
- (iii) POLR demand charge shall be $6.00 per kW, per month.
- (iv) POLR energy charge shall be the appropriate MCPE, determined on the basis of 15-minute intervals, for the customer multiplied by 130%, multiplied by the level of kWh used. The MCPE shall have a floor of $7.25 per MWh.
- (2) If in response to a complaint or upon its own investigation, the commission determines that a POLR failed to charge the appropriate POLR rate, and as a result overcharged its customers, the POLR shall issue refunds to the specific customers who were overcharged.
- (3) On a showing of good cause, the commission may permit the POLR to adjust the POLR rate, if necessary to ensure that the rate is sufficient to allow the POLR to recover its costs of providing service. Notwithstanding any other commission rule to the contrary, POLR rates may be adjusted on an interim basis for good cause shown and after at least ten business days notice and an opportunity for hearing on the request for interim relief. Any adjusted POLR rate shall be applicable to all POLR providers charging the POLR rate to the specific customer class, within the POLR area that is subject to the showing of good cause.
- (4) Customer and demand charges associated with POLR service shall not be pro-rated for partial month usage if a customer switches away from the POLR to a REP of choice.
- (l) Challenges to ESI ID assignments. A POLR is not obligated to serve an ESI ID within a customer class or a POLR area for which the POLR is not designated as a POLR, after a successful challenge of the ESI ID assignment. A POLR shall use the ERCOT market variance resolution tool to challenge a customer class assignment with the TDU. The TDU shall make the final determination based upon historical usage data and not premise type. If the customer class assignment is changed and a different POLR for the ESI ID is determined appropriate, the ESI ID will then be served by the appropriate POLR. Back dated transactions may be used to correct the POLR assignment.
- (m) Limitation on liability. The POLRs will make reasonable provisions to provide POLR service to customers who request POLR service, or are transitioned to POLR service, individually or through a mass transition; however, liabilities not excused by reason of force majeure or otherwise shall be limited to direct, actual damages. Neither the customer nor the POLR provider shall be liable to the other for consequential, incidental, punitive, exemplary, or indirect damages. These limitations apply without regard to the cause of any liability or damage. In no event shall ERCOT or a POLR be liable for damages to any REP, whether under tort, contract or any other legal theory of legal liability, for transitioning or attempting to transition a customer from such REP to the POLR for POLR service, or for marketing, offering or providing competitive retail electric service to a customer taking POLR service from the POLR or being transitioned to the POLR, in compliance with this title.
(n) Transition of customers to POLR service.
- (1) POLR service for a requesting customer is initiated when the customer makes arrangements for POLR service, at the POLR rate, with any POLR authorized to serve the requesting customer's customer class within the requesting customer's POLR area. A POLR cannot refuse a customer's request to make arrangements for POLR service.
- (2) A customer other than a residential customer or small commercial customer (as defined in §25.471(d) of this title (relating to General Provisions of Customer Protection Rules) may agree to a contract or terms of service that allow a REP to transfer the customer to a POLR for reasons other than non-payment, including the failure of the customer and its REP to agree on terms of renewal or extension of service. Unless ERCOT has a transaction that allows REPs to transfer such customers to the POLR, the POLR shall accept written requests for such transfers from REPs and shall initiate a switch for the customer to be transferred to the POLR. The acquisition by the POLR of such customers is not a prohibited enrollment under §25.474 of this title. As of January 1, 2007, this paragraph will expire and REPs will not be permitted to terminate customers to POLR for any reason except pursuant to a mass transition for the reasons described in subsection (n)(12) of this section.
- (3) If a REP terminates service to a customer whose consumption is determined by monthly meter readings without giving notice, the POLR shall prorate the customer's usage based on the customer's historic data or load profile to establish the customer's charges for the relevant portion of the billing cycle, unless the customer requests and is willing to pay for an out-of-cycle meter read. Nothing in this section precludes a POLR from having an out-of-cycle meter read performed for a new customer on its own initiative provided the POLR does not pass on the cost of that meter read to the customer. As of January 1, 2007, this paragraph will expire and REPs will not be permitted to terminate customers to POLR for any reason except pursuant to a mass transition for the reasons described in subsection (n)(12) of this section.
- (4) The POLR is responsible for obtaining resources and services needed to serve a customer once it has been notified that it is serving that customer. The customer is responsible for charges for POLR service at the POLR rate in effect at that time.
- (5) If a REP terminates service to a customer, or transitions a customer to POLR, it is financially responsible for the resources and services used to serve the customer until it notifies the independent organization of the termination or transition of the service and the transfer to the POLR is complete.
- (6) The POLR is financially responsible for all costs of providing electricity to customers from the time the transfer or initiation of service is complete until such time as the customer leaves POLR service.
- (7) A REP whose customers are transitioned to POLRs shall return any unused portion of a transitioned customer's deposit within seven calendar days of receiving an actual or estimated meter read supplied by the TDU.
- (8) ERCOT shall create a single standard file format and a standard set of customer billing contact data elements that in the event of a mass transition shall be used by the exiting REP and the POLRs to send and receive customer billing contact information. The process, as developed by ERCOT shall be tested on a periodic basis. All REPs shall submit timely, accurate, and complete files, as required by ERCOT in a mass transition event, as well as for the periodic tests. ERCOT shall retain the data from the last periodic test, to be used in lieu of data from the exiting REP, in instances where the exiting REP does not provide such data. ERCOT shall have the process utilizing the single standard file format designed and implemented as soon as possible, but no later than July 1, 2007. ERCOT shall revise the mass transition process so that customer transfers in a mass transition are initiated by ERCOT, rather than by a POLR, as soon as possible, but no later than July 1, 2007.
- (9) When customers are to be transitioned to a POLR, the POLR may request usage and demand data from the appropriate TDU and from ERCOT, once the transition to the POLR provider has been initiated (either by the POLR provider or by ERCOT). Customer proprietary information provided to a POLR in accordance with this section shall be treated as confidential by the POLR and shall only be used for POLR related purposes.
- (10) Information from the TDU and ERCOT to the POLRs shall be provided in Texas SET format. However, the TDU or ERCOT may supplement the information to the POLRs in other formats and fashions to expedite the transition to the POLRs. Such supplemental formats shall only be used in exceptional circumstances and at the option of the entity supplying the information. The transfer of information in accordance with this section will not constitute a violation of the customer protection rules that address confidentiality.
- (11) A POLR may require a deposit from a customer that has been transitioned to the POLR to continue to serve the customer once the POLR has begun serving the customer. Despite the lack of a deposit, the POLR is obligated to serve the customer transitioned or assigned to it, beginning on the service initiation date of the transition or assignment, and continuing until such time as any disconnection request is effectuated by the TDU. A POLR may make the request for the deposit before the POLR begins serving the customer, but the POLR shall begin providing service to the customer even if the service initiation date is before the POLR receives the deposit, if any deposit is required, and shall not disconnect the customer until the appropriate time period to submit the deposit has elapsed. For the large non-residential customer class, a POLR may require a deposit to be provided in three calendar days. The POLR may waive the deposit requirement at the customer's request if deposits are waived in a non-discriminatory fashion. The POLR shall waive the deposit requirement for residential customers if the customer meets the qualifications listed in section 2. SECURITY AND BILLING, of the Standard Terms of Service.
(12) On the occurrence of one or more of the following events, ERCOT shall initiate a mass transition to the POLR providers, of all of the ESI IDs served by a REP, as of the date the mass transition is initiated.
- (A) Termination of the Load Serving Entity (LSE) or Qualified Scheduling Entity (QSE) Agreement with ERCOT;
- (B) Issuance of a commission Order declaring a REP in default of Tariff for Retail Delivery Service;
- (C) Issuance of a commission Order de-certifying a REP;
- (D) Issuance of a commission Order requiring a mass transition to POLR providers;
- (E) Issuance of a judicial Order requiring a mass transition to POLR providers; and
- (F) At the request of a REP, for the mass transition of all of that REP's ESI IDs (customers).
- (13) A REP shall not use the mass transition process in this section as a means to eliminate non-profitable contracts, while retaining profitable contracts. A REP's use of the mass transition process may lead to de-certification of the REP.
- (14) ERCOT may provide procedures for the mass transition process, consistent with this section.
(15) Until the process described in paragraph (8) of this subsection is complete, a REP whose ESI IDs are to be transitioned to POLRs shall provide the following information to the appropriate POLRs once the switch to the POLR has been initiated. In the event the exiting REP does not provide the required information, the TDUs shall promptly provide any relevant information in their possession with the understanding that the provided information may be out-dated, incomplete, or inaccurate. Providing the information to the POLRs under the conditions of a transition to POLRs shall not constitute a violation of Subchapter R of this chapter:
- (A) REP's Data Universal Numbering System (DUNS) number;
- (B) Customer's ESI ID number;
- (C) Customer's account number with the REP that is losing the customer;
- (D) Customer's name;
- (E) Customer's telephone number;
- (F) Customer's billing "care of" name; and
- (G) Customer's billing address.
- (16) A mass transition to POLR shall not override or supersede a switch request made by a customer to switch an ESI ID to a new REP of choice, that was made before a mass transition to POLR is initiated, unless the customer choice switch is scheduled for any date other than the next available switch date.
- (17) A "move-in" transaction shall not be used to switch a customer's ESI ID to another REP when a "move-in" has not occurred except when the premise is de-energized or in extreme circumstances as authorized by commission designee.
- (18) All mass transition event timelines shall be based upon calendar days if not specifically stated as such, unless specifically stated otherwise.
- (19) In the event of a transition to a POLR or away from a POLR to a REP of choice, the switch notification notice detailed in §25.474(l) of this title is not required.
- (20) In a mass transition event, the ERCOT initiated transactions shall request an out-of-cycle meter read for the associated ESI IDs, for a date two calendar days after the calendar date ERCOT initiates such transactions to the TDU. If an ESI ID does not have the capability to be read in a fashion other than a physical meter read, the out-of-cycle meter read may be estimated. An estimated meter read for the purpose of a mass transition to POLR shall not be considered a break in a series of consecutive months of estimates, but shall not be considered a month in a series of consecutive estimates performed by the TDU. An out-of-cycle meter read or estimate for the purpose of a mass transition shall be charged to the exiting competitive REP.
(o) Termination of POLR status.
(1) The commission may revoke a REP's POLR status after notice and opportunity for hearing:
- (A) If the POLR fails to maintain REP certification;
- (B) If the POLR fails to provide service in a manner consistent with this section;
- (C) For good cause, provided the commission affords the POLR due process; or
- (D) The POLR fails to maintain appropriate financial qualifications.
- (2) If a non-volunteering POLR provider defaults or has its status revoked before the end of its term, after a review of the eligibility criteria, the next eligible REP will assume the duties of the former POLR, consistent with subsection (j)(6) of this section.
(3) The provisions of this paragraph address the transition to a new POLR at the end of a POLR term.
- (A) At the end of the POLR term the outgoing POLR may chose either to continue to serve POLR customers who do not select another provider through a competitive product or service provided by the outgoing POLR or a REP affiliated with the outgoing POLR or to transfer the customers who do not select another provider to the incoming POLR on the first meter read date after the term of the incoming POLR commences.
- (B) A notice containing the information specified in either subparagraph (C) or (D) of this paragraph, as applicable, shall be provided to each POLR customer at least 60 calendar days prior to the end of the POLR term. The notice shall be in type no smaller than 12 points in size. The notice shall satisfy the requirements of §25.493(b) of this title (relating to Acquisition and Transfer of Customers from one Retail Electric Provider to Another). The notice shall also include a phone number for the outgoing POLR for the customer to call to obtain more information.
- (C) The notice provided by a POLR that elects to transfer customers who fail to switch to another provider, to a competitive product or service provided by the outgoing POLR or a REP affiliated with the outgoing POLR, shall include a description of the POLR pricing mechanism for the appropriate customer class and service area and a statement that the POLR price is generally higher than available competitive prices, that the POLR price is unpredictable, and that the exact POLR rate for each billing period will not be determined until the time the bill is prepared, and the competitive product or service rate offered by the outgoing POLR or a REP affiliated with the outgoing POLR. The notice shall specify the deposit requirements of the outgoing POLR or REP affiliated with the outgoing POLR and shall state that other providers may also require a deposit and may require payment of any amounts owed the provider for services previously rendered. The notice shall state where the customer may find additional information about offerings of other providers and shall inform the customer that, if the customer does not select another provider or request service from the incoming POLR by a specified date, that a competitive affiliate of the outgoing POLR will continue to serve the customer at the rate specified in the notice.
- (D) If the POLR elects to transfer customers who do not select another provider, to the incoming POLR on the first meter read date after the term of the incoming POLR commences, the notice to customers shall state where the customer can find more information about other offerings as well as the rates of the incoming POLR. The notice shall include a description of the POLR pricing mechanism for the appropriate customer class and service area and a statement that the POLR price is generally higher than available competitive prices, that the POLR price is unpredictable, and that the exact POLR rate for each billing period will not be determined until the time the bill is prepared. The notice shall also inform the customer that, if the customer does not select another provider by a specified date, the customer will be transferred to the incoming POLR on the first meter read date after the commencement of the POLR term. The notice shall also inform the customer that the incoming POLR will bill the customer for a deposit and that the deposit can be made in two installments as will be described further in the notice from the incoming POLR.
- (E) If a POLR customer either requests service from the incoming POLR or is terminated to the incoming POLR by the outgoing POLR, the outgoing POLR shall offset the customer's final bill against the customer's deposit and refund any remaining balance to the customer within seven calendar days from the customer's final meter read date. The customer shall be entitled to pay the deposit required by the incoming POLR in two installments in the manner provided in §25.478(e)(3) of this title (relating to Credit Requirements and Deposits).
(p) Electric cooperative delegation of authority. An electric cooperative that has adopted customer choice may propose to delegate to the commission its authority to select POLR providers under PURA §41.053(c) in its certificated service area in accordance with this section. After notice and opportunity for comment, the commission will, at its option, accept or reject such delegation of authority. If the commission accepts the delegation of authority, the following conditions will apply:
- (1) The board of directors will provide the commission with a copy of a board resolution authorizing such delegation of authority;
- (2) The delegation of authority will be made at least 30 calendar days prior to the time the commission issues a publication of notice of eligibility;
- (3) The delegation of authority will be for a minimum period corresponding to the period for which the solicitation will be made;
- (4) The electric cooperative wishing to delegate its authority to designate a POLR will also provide the commission with the authority to apply the selection criteria and procedures described in this section in selecting the POLR providers within the electric cooperative's certificated service area; and
- (5) If there are no competitive REPs offering service in the electric cooperative certificated area, the commission will automatically reject the delegation of authority.
(q) Reporting requirements. Each POLR shall file, and affiliated REPs serving nonpaying customers of competitive REPs shall file the following information with the commission on a quarterly basis beginning January of each year in a project established by the commission for the receipt of such information. Each quarterly report shall be filed within 30 calendar days of the end of the quarter. Except as provided in paragraph (5) of this subsection, information filed by an affiliated REP in accordance with paragraph (1) of this subsection will be made publicly available by the commission on an aggregated basis. Except as provided in paragraph (5) of this subsection, information filed by a POLR in accordance with paragraphs (2) - (4) of this subsection will be made publicly available by the commission for each POLR area. After the report applicable to data for the fourth quarter of 2006 is filed, the requirements of this subsection that are applicable to the affiliated REP serving non-paying customers of competitive REPs will expire.
(1) For each month of the reporting quarter, the affiliated REP shall report:
- (A) The number of residential customers who were disconnected for non-payment and the number of those customers that were eligible for the rate reduction program under §25.454 of this title;
- (B) The number of residential customers who were transferred to the affiliated REP by a competitive REP for non-payment and the number of those customers that were eligible for the rate reduction program under §25.454 of this title;
- (C) The average amount owed to the affiliated REP by residential customers at the time of disconnection;
- (D) The average amount owed to the affiliated REP by residential customers eligible for the rate reduction program at the time of disconnection;
- (E) The number of small non-residential customers who were disconnected for non-payment; and
- (F) The average amount owed to the affiliated REP by small non-residential customers at the time of disconnection.
(2) For each month of the reporting quarter, each POLR shall report the total number of new customers acquired by the POLR and the following information regarding these customers:
- (A) The number of customers eligible for the rate reduction program pursuant to §25.454 of this title;
- (B) The number of customers from whom a deposit was requested pursuant to the provisions of §25.478 of this title, and the average amount of deposit requested;
- (C) The number of customers from whom a deposit was received, including those who entered into deferred payment plans for the deposit, and the average amount of the deposit;
- (D) The number of customers whose service was physically disconnected pursuant to the provisions of §25.483 of this title (relating to Disconnection of Service) for failure to pay a required deposit; and
- (E) Any explanatory data or narrative necessary to account for customers that were not included in either subparagraph (C) or (D) of this paragraph.
(3) For each month of the reporting quarter each POLR shall report the total number of customers to whom a disconnection notice was issued pursuant to the provisions of §25.483 of this title and the following information regarding those customers:
- (A) The number of customers eligible for the rate reduction program pursuant to §25.454 of this title;
- (B) The number of customers who entered into a deferred payment plan, as defined by §25.480(j) of this title (relating to Bill Payment and Adjustments) with the POLR;
- (C) The number of customers whose service was physically disconnected pursuant to §25.483 of this title;
- (D) The average amount owed to the POLR by each disconnected customer at the time of disconnection; and
- (E) Any explanatory data or narrative necessary to account for customers that are not included in either subparagraph (B) or (C) of this paragraph.
- (4) For the entirety of the reporting quarter, each POLR shall report, for each ESI ID that received POLR service, the TDU and POLR customer class associated with the ESI ID, the number of days the ESI ID received POLR service, and whether the ESI ID is currently a POLR customer.
- (5) Reports filed under this subsection are subject to release as public information unless the reports or specific parts of the reports can be shown to be exempt from disclosure under Chapter 552 of the Texas Government Code, commonly known as the Texas Public Information Act (TPIA). If a reporting entity contends that all or part of a report is confidential, then the reporting entity shall file the information in accordance with the requirements of §22.71(d) of this title. The reporting entity must submit in writing specific detailed reasons, including relevant legal authority, in support of its contentions that the material is exempt from disclosure under the TPIA. All reports and parts of reports that are not marked as confidential will be automatically considered public information upon submittal. The validity of any claim of confidentiality may be determined by the commission through a contested case proceeding, by the Office of the Attorney General pursuant to the provisions of the TPIA, or both.
(r) Notice of Transition to POLR Service. When a customer is moved to POLR service the customer will be provided notice of the transition by the REP transitioning the customer as well as by the POLR. Notice shall be provided as soon as the transitioning REP knows the customer will be transitioned to POLR service and as soon as the POLR has the customer contact information. The notice of transition to POLR service shall include, at a minimum the following items:
(1) Notice by the REP transitioning the customer:
- (A) The reason for the transition to POLR service;
- (B) A contact number for the REP;
- (C) A statement that the customer will receive a separate notice from the POLR that will disclose the date the POLR will begin serving the customer;
- (D) A description of how and when any unused customer deposit will be returned to the customer;
- (E) A description of the POLR pricing mechanism for the appropriate customer class and service territory and a statement that the POLR price is generally higher than available competitive prices, that the POLR price is unpredictable, and that the exact POLR rate for each billing period will not be determined until the time the bill is prepared;
- (F) A statement that the customer can leave POLR service by choosing a competitive product or service offered by the POLR, a REP affiliated with the POLR, or another competitive REP, as well as the following statement: "If you would like to choose a different retail electric provider, please access www.powertochoose.org, or call toll-free 1-866-PWR-4-TEX (1-866-797-4839) for a list of providers in your area;"
- (G) For residential customers, notice from the commission in the form of a bill insert or a bill message with the header "A Message from the Public Utility Commission" addressing why the customer has been transitioned to POLR, the continuity of service purpose and temporary nature of POLR service, the need to choose a competitive provider, and information on competitive markets to be found at www.powertochoose.org, or toll-free at 1-866-PWR-4-TEX (1-866-797-4839);
- (H) If applicable, a description of the activities that the REP will use to collect any outstanding payments, including the use of consumer reporting agencies, debt collection agencies, small claims court, and other remedies allowed by law, if the customer does not pay or make acceptable payment arrangements with the REP; and
- (I) Notice to the customer that after being transitioned to POLR service, the customer may accelerate a switch to another REP by requesting a "special or out-of-cycle meter read" and that applicable transmission and distribution utility charges for the meter read will be charged to the gaining REP, which may pass the charge on to you as a customer.
(2) Notice by the POLR:
- (A) The date the POLR will begin serving the customer and a contact number for the POLR;
- (B) A description of the POLR pricing mechanism for the appropriate customer class and service area and a statement that the POLR price is generally higher than available competitive prices, that the POLR price is unpredictable, and that the exact POLR rate for each billing period will not be determined until the time the bill is prepared;
- (C) The deposit requirements of the customer and any applicable deposit waiver provisions and a statement that, if the customer chooses a competitive product or service offered by the POLR, a REP affiliated with the POLR, or another competitive REP, a deposit may be required;
- (D) A statement that the competitive products or services may be available through the POLR, a REP affiliated with the POLR, or another competitive REP, and the customer can leave POLR service by choosing a competitive product or service offered by the POLR, a REP affiliated with the POLR, or another competitive REP, as well as the following statement: "If you would like to choose a different retail electric provider, please access www.powertochoose.org, or call toll-free 1-866-PWR-4-TEX (1-866-797-4839) for a list of providers in your area;"
- (E) The applicable POLR Standard Terms of Service;
- (F) The applicable disconnection procedures;
- (G) Notice to the customer that after being transitioned to POLR service, the customer may accelerate a switch to another REP by requesting a "special or out-of-cycle meter read" and that the applicable transmission and distribution utility charge for the meter read will be charged to the gaining REP, which may pass the charge on to you as the customer;
- (H) Notice that after enrolling in a non-POLR, competitive product or service, the customer shall no longer be considered a POLR customer; and
- (I) For residential customers, with each bill from the POLR, notice from the commission in the form of a bill insert or a bill message with the header "A Message from the Public Utility Commission" addressing why the customer has been transitioned to POLR, the continuity of service purpose and temporary nature of POLR service, the need to choose a competitive provider, and information on competitive markets to be found at www.powertochoose.org or toll-free 1-866-PWR-4-TEX (1-866-797-4839).
- (s) Disconnection by POLR. The POLR must comply with the applicable customer protection rules as provided for under Subchapter R of this chapter except as otherwise stated in this section. To ensure continuity of service, POLR service shall begin when the ESI ID transition to the POLR is complete. A customer deposit is not a prerequisite for the initiation of POLR service. Once POLR service has been initiated, a customer deposit may be required to prevent disconnection. Disconnection for failure to pay a deposit may not occur until after the proper notice and after that appropriate payment period detailed in §25.478 of this title, has elapsed, except where otherwise noted in this section.
Source Note:The provisions of this §25.43 adopted to be effective September 12, 2002, 27 TexReg 8428; amended to be effective July 31, 2006, 31 TexReg 5910.