1. (a) Purpose. This section establishes the terms and conditions for competitive metering services to be offered to commercial and industrial customers served by an investor-owned transmission and distribution utility (TDU) beginning on January 1, 2004, as required by Public Utility Regulatory Act (PURA) §39.107(a), in areas where customer choice has been introduced. In areas where customer choice has been delayed, this section shall establish terms and conditions for competitive metering services to begin on a date determined by the commission, following the introduction of customer choice.

2. (b) Definitions. The following words and terms, when used in this section, shall have the following meanings unless the context clearly indicates otherwise.

   1. (1) Commercial and industrial customers--Those customers that do not receive electric service under a residential distribution tariff.
   2. (2) Data management--Includes validation, estimation, editing, extraction of billing components, support of retail transactions described in the Electric Reliability Council of Texas (ERCOT) protocols, and transfer of meter reading data to the settlement agent and other approved entities specified by the ERCOT protocols.
   3. (3) Maintenance--Activities necessary to maintain a meter in proper working order, including failure investigation, equipment repair, and replacement.
   4. (4) Meter owner--Entity that owns the settlement and TDU billing meter that is used for the measurement of electric energy delivered to a particular location.
   5. (5) Metering services--Activities relating to the measurement, for the purpose of settlement and TDU billing, of electricity provided to a retail customer, including, but not limited to ownership, installation and removal, maintenance, testing and calibration, data collection, and data management.
   6. (6) Meter tampering--In areas where competitive metering has been introduced, meter tampering, bypass, or diversion is defined as tampering with a settlement and TDU billing meter or equipment, bypassing the same, or other instances of diversion, such as physically disorienting the meter; attaching objects to the meter to divert or bypass service; inserting objects into the meter; and other electrical and mechanical means of tampering with, bypassing, or diverting electrical service.
   7. (7) Testing--Activities as defined in §25.124 of this title (relating to Meter Testing).

3. (c) Meter ownership. Beginning January 1, 2004, a commercial or industrial retail customer may choose a meter owner. The meter owner may be, at the option of the retail customer:

   1. (1) the retail customer;
   2. (2) a retail electric provider (REP);
   3. (3) the TDU; or
   4. (4) other person authorized by the customer.
4. (d) Data ownership. The current retail customer shall own all meter data related to the premise occupied by that customer, regardless of whether the meter owner is the customer, the owner of the premise, or a third party. To the extent that data integrity is not compromised, the current retail customer shall have the right to physical access to the meter to obtain such meter data when technically feasible. The current retail customer shall have the right and capability, including necessary security passwords, to assign access to meter data related to the premise occupied by that customer.

5. (e) Transition period.

   1. (1) Market readiness.

      1. (A) ERCOT shall file with the commission quarterly updates on the operational readiness of support systems necessary for the commission to authorize an entity other than the TDU to provide metering services as described in paragraph (4) of this subsection.
      2. (B) ERCOT shall file an annual status report on the implementation of competitive metering services on September 1 of each year. No later than 30 days after ERCOT's annual filing, interested parties may file comments on the status report.

   2. (2) Pilot project. The commission may establish one or more pilot projects under which an entity other than the TDU may provide metering services as described in paragraph (4) of this subsection.

      1. (A) Any request to establish a pilot project shall be filed with the commission, and shall include a full description of the proposed project, including date of commencement, geographic scope, an explanation of how the proposed project will operate under the then-current ERCOT protocols and procedures, and a cost-benefit analysis of the proposed project.
      2. (B) No competitive metering pilot project shall begin before January 1, 2004.
   3. (3) Utility ownership of meters. A TDU shall continue to provide metering services and own all settlement and TDU billing meters that are used for the measurement of electric energy to any customer that does not choose an alternative meter owner.
   4. (4) Other metering services. Until otherwise authorized by the commission, a TDU shall continue to provide metering services relating to installation and removal, maintenance, testing and calibration, data collection, and data management, including the transfer of meter data to the settlement agent.

6. (f) Metering equipment.

   1. (1) No later than 60 days after the effective date of this section, ERCOT shall develop a process to establish, and periodically revise, a list of meters that shall be considered qualifying competitive meters for the purposes of this section.

      1. (A) The first list of qualifying meters shall be adopted by ERCOT no later than 90 days after the effective date of this section.
      2. (B) Each qualifying competitive meter shall meet commission-approved standards and shall be capable of providing the data necessary for billing in accordance with the TDU's delivery tariff and for settlement in accordance with the settlement agent's protocols.
      3. (C) Each TDU data collection system shall be compatible with each meter on the list within 90 days of the release of the list.
   2. (2) Requests for installation or removal shall be made to the TDU pursuant to the TDU's tariff.

7. (g) Conformance with metering standards.

   1. (1) A meter that fails to meet commission-approved standards for accuracy shall not be placed in service or left in service. A meter found to violate these standards shall be adjusted or replaced in accordance with this subsection at the time the violation is discovered.
   2. (2) Meters shall be adjusted as closely as practicable to the condition of zero error.
   3. (3) If a meter owned by the TDU is found not to meet commission-approved standards for accuracy, the TDU shall install a replacement meter in accordance with its tariffs.
   4. (4) If a meter that is not owned by the TDU is found not to meet commission-approved standards for accuracy, the TDU shall install a temporary replacement meter. The temporary replacement meter shall be capable of providing the data necessary for billing in accordance with the TDU's tariff, and shall also provide settlement data in accordance with the settlement agent's protocols. The TDU shall notify the customer and the meter owner that the meter does not meet commission-approved standards for accuracy and shall take reasonable measures to safeguard the meter until the meter owner takes possession of it. The meter owner shall be responsible for the associated charges, in accordance with the TDU's tariff.

8. (h) Testing of meters. Costs for meter tests shall be the responsibility of the customer's REP in accordance with the TDU's tariff, except that when a request is made to test a meter that is subsequently found to meet commission-approved standards for accuracy, the cost of the meter test shall be the responsibility of the requestor.

   1. (1) Upon request for a meter test by a retail customer, a REP shall request that a meter be tested in accordance with the TDU's applicable tariff.
   2. (2) A REP may request that a meter be tested in accordance with the TDU's applicable tariff.
   3. (3) A meter owner other than the retail customer may request that a meter be tested in accordance with the TDU's applicable tariff.
   4. (4) If the TDU suspects a meter malfunction, it shall promptly test the meter in accordance with its tariff.
   5. (5) Following the completion of any meter test, the TDU shall promptly advise the requestor, and the retail customer's REP of the date of removal of the meter, the date of the test, the result of the test, and who made the test.

9. (i) Use of meter data for settlement and TDU billing.

   1. (1) The TDU shall have the right and capability, including necessary security passwords, to access meter data for the purpose of rendering a bill, as well as for load research purposes. The TDU is responsible for the security of the data used for settlement and TDU billing and shall maintain the meter programming password capable of altering such billing parameters.
   2. (2) No entity other than the TDU shall have the right, capability, or meter programming password to alter the data collected by the meter for the purpose of TDU billing.
   3. (3) A TDU's requirements for load research shall not have the effect of limiting the type or frequency of meter data available to an end-use customer.
10. (j) Competitive metering service credit. Within 90 days of the effective date of this rule, a TDU shall file with the commission a tariff that provides a competitive metering service credit to the REP of a customer that selects a meter owner other than the TDU. Such tariff shall be accompanied by workpapers demonstrating the derivation of the credit.

Source Note:The provisions of this §25.311 adopted to be effective June 19, 2003, 28 TexReg 4545.