1. (a) Applicability. This section applies to retail electric providers (REPs) that did not have disconnection authority, pursuant to §25.483 of this title (relating to Disconnection of Service) on May 31, 2004. In addition, this section shall apply to a transmission and distribution utility (TDU) where specifically stated. This section applies only with respect to customers who were subject to termination, but not disconnection, by their REP pursuant to §25.483 of this title on May 31, 2004. Beginning June 1, 2004, a REP shall not transfer any customers in accordance with subsection (b)(1) of this section if the REP is requesting disconnection for non-payment in accordance with §25.483 of this title. A REP shall inform the relevant TDU and affiliated REP as to whether or not the REP is requesting disconnections for non-payment.

2. (b) Termination policy. A REP choosing to terminate its contract with a customer shall comply with the minimum standards in this section, or may have provisions in its terms of service that are more favorable to the customer in terms of the cause for termination, the timing of the termination notice, and the period between notice and termination. Nothing in this section shall be interpreted to require a REP to terminate its contract with a customer.

   1. (1) Termination for non-payment. A REP that was not authorized to disconnect for nonpayment pursuant to the provisions of §25.483(b) of this title on May 31, 2004 may terminate its contract with a customer for nonpayment of electric service charges and transfer the customer to the affiliated REP.

      1. (A) Prior to terminating service to a customer for non-payment, a REP shall issue notice of termination to the customer in accordance with subsection (f) of this section.
      2. (B) If a customer makes payment or satisfactory payment arrangements prior to the final due date, specified in the termination notice to the customer, the REP shall continue serving the customer under the existing terms and conditions that were in effect prior to the issuance of a termination notice. Payment of the delinquent bill at the REP's authorized payment agency, if any, is considered payment to the REP.
      3. (C) If a customer does not make a payment or satisfactory payment arrangements until after the final due date specified in the termination notice, the REP is not required to continue to serve the customer under the prior terms of service.
   2. (2) Termination for reasons other than non-payment. If a REP terminates service with a customer for reasons other than nonpayment (i.e., contract expiration), the REP shall transfer the customer to the provider of last resort (POLR), unless otherwise authorized by the commission.

3. (c) Termination prohibited. A REP may not terminate its contract with a customer for any of the following reasons:

   1. (1) delinquency in payment for electric service by a previous occupant of the premises if the occupant is not of the same household;
   2. (2) failure to pay for any charge that is not related to electric service;
   3. (3) failure to pay for a different type or class of electric service unless charges for such service were included on that account's bill at the time service was initiated;
   4. (4) failure to pay charges arising from an underbilling, except for charges related to theft of service, in accordance with §25.480(e) of this title (relating to Bill Payment and Adjustments);
   5. (5) failure to pay disputed charges until a determination as to the accuracy of the charges has been made by the REP;
   6. (6) failure to pay disputed charges while an informal complaint filed under §25.485 of this title (relating to Customer Access and Complaint Handling) is pending or a complaint that has been formally docketed in accordance with §22.242 of this title (relating to Complaints) is pending;
   7. (7) failure to pay charges arising from an underbilling due to any faulty metering, unless the meter has been tampered with or unless such underbilling charges are due under §25.126 of this title (relating to Meter Tampering); or
   8. (8) failure to pay an estimated bill other than a bill rendered pursuant to an approved meter-reading plan, unless the bill is based on an estimated meter read by the TDU.
4. (d) Termination due to abandonment by the REP. A REP shall not abandon a customer or a service area without advance written notice to its customers and the commission and approval from the commission. The notice shall contain the contents required by §25.493(c), relating to Acquisition and Transfer of Customers from one Retail Electric Provider to Another, with the exception of the information required by paragraph (c)(5) of that section. In the event a REP terminates a customer's service due to abandonment, that REP shall not collect or attempt to collect penalties from that customer.

5. (e) Termination of energy assistance clients.

   1. (1) A REP shall not terminate service to a delinquent residential customer for a billing period in which the provider receives a pledge, letter of intent, purchase order, or other notification that an energy assistance provider is forwarding sufficient payment to continue service provided that such pledge, letter of intent, purchase order, or other notification is received by the due date stated on the termination notice, and the customer, by the due date in the termination notice, either pays or makes payment arrangements to pay any outstanding debt not covered by the energy assistance provider.
   2. (2) If an energy assistance provider has requested historical usage data pursuant to §25.472(b)(4) of this title (relating to Privacy of Customer Information), the REP shall extend the final due date on the termination notice, day for day, from the date the usage data was requested until it is provided.
   3. (3) A REP shall allow at least 45 days for an energy assistance provider to honor a pledge, letter of intent, purchase order, or other notification before submitting the termination request.
   4. (4) A REP may terminate service to a customer if the energy assistance agency's payment is not received by the date agreed upon by the REP and the energy assistance provider or if the customer fails to pay any portion of the bill not covered by the pledge.

6. (f) Termination notices. Any termination notice issued by a REP shall:

   1. (1) not be issued before the first day after the bill is due.
   2. (2) be a separate mailing or hand delivered document with a stated date of termination with the words "termination notice" or similar language prominently displayed. The termination notice may be sent concurrently with a request for deposit, and a REP may send an additional notice by email or facsimile.
   3. (3) have a final due date in the termination notice that is not a holiday, weekend day, or any other day that the REP's personnel is not available to take payments, and that is not less than ten days after the notice is issued.

7. (g) Contents of termination notice. Any termination notice shall include the following information:

   1. (1) The reasons for the termination of service;
   2. (2) The actions, if any, that the customer may take to avoid the termination of service;
   3. (3) If the customer is in default, the amount of all fees or charges which will be assessed, if any, against the customer as a result of the default under the contract, as set forth in the REP's terms of service document provided to the customer;
   4. (4) The amount overdue, if applicable;
   5. (5) A toll-free telephone number that the customer can use to contact the REP to discuss the notice of termination or to file a complaint with the REP, and the following statement: "If you are not satisfied with our response to your inquiry or complaint, you may file a complaint by calling or writing the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas, 78711-3326; Telephone: (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. Complaints may also be filed electronically at www.puc.state.tx.us/ocp/complaints/complain.cfm."
   6. (6) If a deposit is being held by the REP on behalf of the customer, a statement that the deposit will be applied against the final bill (if applicable) and the remaining deposit will be either returned to the customer or transferred to the new REP, at the customer's designation and with the consent of both REPs.
   7. (7) The availability of deferred payment or other billing arrangements, if any, from the REP, and the availability of any state or federal energy assistance programs and information on how to get further information about those programs.
   8. (8) A description of the activities that the REP will use to collect payment, including the use of debt collection agencies, small claims court and other legal remedies allowed by law, if the customer does not pay or make acceptable payment arrangements with the REP.
8. (h) Notification of the registration agent. After the expiration of the notice period in subsection (f) of this section, a REP shall notify the registration agent of a transfer request in a manner established by the registration agent so that the customer will receive service from the affiliated REP or the POLR.

9. (i) Customer's right to terminate service without penalty. A customer may terminate service without penalty in the event:

   1. (1) The customer moves to another premises;
   2. (2) Market conditions change and the terms of service document allows the REP to terminate service without penalty in response to changing market conditions; or
   3. (3) A REP notifies the customer of a material change in the terms and conditions of the service agreement.
10. (j) This section is effective June 1, 2004.

Source Note:The provisions of this §25.482 adopted to be effective January 15, 2001, 26 TexReg 125; amended to be effective Spetember 12, 2002, 27 TexReg 8428; amended to be effective June 1, 2004, 29 TexReg 4756.