1. (a) After a customer has enrolled or switched to a retail electric provider (REP), pursuant to §25.474 of this title (relating to Selection or Change of Retail Electric Provider), any subsequent services offered by the REP that will be billed on the customer's electric bill shall be authorized by the customer consistent with this section. A REP may obtain authorization for an additional product or service to appear on the bill for existing customers by using any of the methods set forth in §25.474 of this title.

2. (b) Requirements for billing charges. A REP shall meet all of the following requirements before including any charges on the customer's electric bill:

   1. (1) Inform the customer. The REP has thoroughly informed the customer of the product or service being offered, including all associated charges, and has explicitly informed the customer that the associated charges for the product or service will appear on the customer's electric bill.
   2. (2) Obtain customer consent. The customer has clearly and explicitly consented to obtaining the product or service offered and to have the associated charges appear on the customer's electric bill. The consent shall be authorized and verified by the REP in accordance with §25.474(f) of this title. A record of the consent, including verification, shall be maintained by the REP for at least 24 months, beginning immediately after the consent and verification are obtained.
   3. (3) Provide contact information. The REP has provided the customer with a toll-free telephone number the customer may call and an address to which the customer may write to resolve any billing dispute and to answer questions.

3. (c) Responsibilities for unauthorized charges.

   1. (1) If a customer's electric bill is charged for any product or service without proper customer consent and verification of authorization in compliance with this section, the REP that billed the customer, when it learns or is notified that any charge that has not been authorized, shall promptly, but not later than 45 days thereafter:

      1. (A) cease charging the customer for the unauthorized product or service;
      2. (B) remove the unauthorized charge from the customer's bill;
      3. (C) refund or credit to the customer all money that has been paid by the customer for any unauthorized charge, and if any unauthorized charge that has been paid is not refunded or credited within three billing cycles, pay interest at an annual rate established by the commission pursuant to §25.478(g) of this title (relating to Credit Requirements and Deposits) on the amount of any unauthorized charge until it is refunded or credited; and
      4. (D) on the customer's request, provide the customer with all billing records under its control related to any unauthorized charge within 15 business days after the date of the removal from the customer's electric bill.

   2. (2) A REP shall not:

      1. (A) seek to terminate or disconnect electric service to any customer for nonpayment of an unauthorized charge;
      2. (B) file an unfavorable credit report against a customer who has not paid charges that the customer has alleged were unauthorized unless the dispute regarding the unauthorized charges is ultimately resolved against the customer. The customer shall remain obligated to pay any charges that are not in dispute, and this paragraph does not apply to those undisputed charges; or
      3. (C) re-bill the customer for any unauthorized charge.

   3. (3) A REP, other than a municipally owned utility or an electric cooperative, shall maintain for at least 24 months a record of every customer who has experienced any unauthorized charge for a product or service on the customer's electric bill and has notified the REP of the unauthorized charge. The record shall contain for each unauthorized charge:

      1. (A) the date each customer requested that the REP remove the unauthorized charge from the customer's electric bill;
      2. (B) the date the unauthorized charge was removed from the customer's electric bill; and
      3. (C) the date the customer was refunded or credited any money that the customer paid for the unauthorized charges.
4. (d) Notice to customers. Any bill sent to a customer from a REP shall include a statement, prominently located on the bill, that if the customer believes the bill includes unauthorized charges, the customer may contact the REP to dispute such charges and may file a complaint with the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326, (512) 936-7120 or toll-free in Texas at (888) 782-8477. Hearing and speech-impaired individuals with text telephones (TTY) may contact the commission at (512) 936-7136.

5. (e) Compliance and enforcement.

   1. (1) Records of customer authorizations. A REP shall provide proof of the customer's authorization and verification to the customer and/or the commission upon request.
   2. (2) Records of unauthorized charges. A REP shall provide a copy of records maintained under the requirements of subsection (c)(3) of this section to the commission upon request.

Source Note:The provisions of this §25.481 adopted to be effective January 15, 2001, 26 TexReg 125.