1. (a) Acceptable reasons to refuse electric service. A retail electric provider (REP) may refuse to provide electric service to a customer for one or more of the reasons specified in this subsection:

   1. (1) Customer's facilities inadequate. The customer's installation or equipment is known to be hazardous or of such character that satisfactory service cannot be given, or the customer's facilities do not comply with all applicable state and municipal regulations.
   2. (2) Use of prohibited equipment or attachments. The customer fails to comply with the transmission and distribution utility's, municipally owned utility's, or electric cooperative's tariff pertaining to operation of nonstandard equipment or unauthorized attachments that interfere with the service of others.
   3. (3) Intent to deceive. The customer applies for service at a location where another customer received, or continues to receive, service and the other customer's bill from the REP is unpaid at that location, and the REP can reasonably demonstrate the change of account holder and billing name is made to avoid or evade payment of an outstanding bill owed to the REP.
   4. (4) For indebtedness. The customer owes a bona fide debt to the REP for the same kind of service as that being requested. An affiliate REP or provider of last resort (POLR) shall offer the customer an opportunity to pay the outstanding debt to receive service. In the event a customer's indebtedness is in dispute, the customer shall be provided service upon paying a deposit pursuant to §25.478 of this title (relating to Credit Requirements and Deposits).
   5. (5) Failure to pay guarantee. A customer has acted as a guarantor for another customer and failed to pay the guaranteed amount, where such guarantee was made in writing and was a condition of service.
   6. (6) Refusal to comply with credit requirements. The customer refuses to comply with the credit and deposit requirements set forth in §25.478 of this title.
   7. (7) Other acceptable reasons to refuse electric service. A competitive retailer may refuse to provide electric service to a customer for one or more of the reasons specified in paragraph (1)-(6) of this subsection or for any other reason that is not otherwise discriminatory pursuant to §25.471 of this title (relating to General Provisions of Customer Protection Rules).

2. (b) Insufficient grounds for refusal to serve. The following are not sufficient cause for refusal of service to a customer by a REP:

   1. (1) delinquency in payment for electric service by a previous occupant of the premises to be served;
   2. (2) failure to pay for any charge that is not related to the provision of electric service, including a competitive energy service, merchandise, or other services that are optional and are not included in the electric service provided;
   3. (3) failure to pay a bill that includes more than the allowed six months of underbilling, unless the underbilling is the result of theft of service;
   4. (4) failure to pay the unpaid bill of another customer for usage incurred at the same address, except where the REP has reasonable and specific grounds to believe that the customer has applied for service to avoid or evade payment of a bill issued to a current occupant of the same address.

3. (c) Disclosure upon refusal of service.

   1. (1) A REP that denies electric service to a customer shall inform the customer of the reason for the denial. Upon the customer's request, this disclosure shall be furnished in writing to the customer. This disclosure may be combined with any disclosures required by applicable federal or state law.
   2. (2) This disclosure is not required when the REP notifies the customer orally that the customer is not located in a geographic area served by REP, does not have the type of usage characteristics that is served by the REP, or is not part of a customer class served by the REP.

   3. (3) Specifically, the REP shall inform the customer:

      1. (A) of the reasons for the refusal of service;
      2. (B) that the customer may be eligible for service if the customer remedies the reason(s) for refusal and complies with the REP's terms and conditions of service;
      3. (C) that the REP cannot refuse service based on the prohibited grounds set forth in §25.471(c) of this title;
      4. (D) that a customer who is dissatisfied may file a complaint with the commission pursuant to §25.485 of this title (relating to Customer Access and Complaint Handling); and
      5. (E) of the availability and existence of POLR service and the toll-free telephone number to contact the POLR.

Source Note:The provisions of this §25.477 adopted to be effective January 15, 2001, 26 TexReg 125.