1. (a) Termination policy. A retail electric provider (REP) may terminate its contract with a customer for nonpayment of electric service charges and, if no other REP extends service to that customer, service shall be offered by the provider of last resort (POLR). If a customer makes payment or satisfactory payment arrangements prior to the termination date, a REP shall continue serving the customer under the existing terms and conditions that were in effect prior to the issuance of a termination notice. If a REP chooses to terminate its contract with a customer, it shall follow the procedures in this section, or modify them in ways that are more generous 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.

2. (b) 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 that 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 utility 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 theft of service, more than six months prior to the current billing;
   5. (5) failure to pay disputed charges until a determination as to the accuracy of the charges has been made by the REP or the commission, and the customer has been notified of this determination;
   6. (6) 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
   7. (7) failure to pay an estimated bill other than a bill rendered pursuant to an approved meter-reading plan, unless the transmission and distribution utility is unable to read the meter due to circumstances beyond its control.
3. (c) Termination on holidays or weekends. Unless requested by the customer, a REP shall not terminate a contract for electric service on holidays or weekends.
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. In the event a provider terminates a customer's contract due to abandonment, that provider shall not collect or attempt to collect penalties from that customer.
5. (e) Termination of energy assistance clients. A REP shall not terminate a contract for 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.
6. (f) Extreme weather. A REP shall not seek to terminate a residential customer's contract for electric service due to non-payment during an extreme weather emergency. A REP and shall offer residential customers a deferred payment plan that complies with the requirements of §25.480 of this title (relating to Bill Payment and Adjustments) for bills that become due during the weather emergency. The term "extreme weather emergency" means the weather conditions described in §25.483 of this title (relating to Disconnection of Service).

7. (g) Termination notices. Except as provided in §25.475 of this title (relating to Information Disclosures to Residential and Small Commercial Customers) a REP may issue a notice of termination of contract. Any termination notice shall:

   1. (1) not be issued before the first day after the bill is due, to enable the REP to determine whether the payment was received by the due date. Payment of the delinquent bill at the REP's authorized payment agency is considered payment to the REP.
   2. (2) be a separate mailing or hand delivered with a stated date of termination with the words "termination notice" or similar language prominently displayed. A REP may send an additional notice by email or facsimile.
   3. (3) have a termination date that is not a holiday or weekend day and that is not less than ten days after the notice is issued.

8. (h) Contents of termination notice. Any termination notice shall include the following information:

   1. (1) The reason for the termination of the contract;
   2. (2) The actions, if any, that the customer may take to avoid the termination of the contract;
   3. (3) If the customer is in default, the amount of all fees or charges which will be assessed against the customer as a result of the default under the contract, if any, 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."
   6. (6) A statement that informs the customer of the right to obtain services from another licensed REP or a POLR, and that information about other REPs or the POLR can be obtained from the commission and the POLR. Customers that do not exercise their right to choose another REP shall have their electric service transferred to the POLR, in accordance with the applicable rules or protocols, and may be required to pay a deposit, or prepay, to receive ongoing electric service. The REP shall not state or imply that nonpayment by the customer will result in physical disconnection of electricity or affect the customer's ability to obtain electric service from another REP or the POLR.
   7. (7) If a deposit is being held by the REP on behalf of the customer, a statement that the deposit will applied against the final bill (if applicable) and the remaining deposit with be either returned to the customer or transferred to the new REP, at the customer's designation.
   8. (8) 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.
   9. (9) 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.
9. (i) Notification of the registration agent. After the expiration of the notice period in subsection (g) of this section, a REP shall notify the registration agent of a switch request in a manner established by the registration agent so that the customer will receive service from the POLR, unless the customer selects another REP prior to the effective date of the switch.

10. (j) Customer's right to terminate a contract without penalty. As disclosed in the customer's terms of service document, a customer may terminate a contract without penalty in the event:

    1. (1) The customer moves to another premises;
    2. (2) Market conditions change and the contract allows the REP to terminate the contract 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 their service agreement.

Source Note:The provisions of this §25.482 adopted to be effective January 15, 2001, 26 TexReg 125.