1. (a) Applicability. This section applies to all retail electric providers (REPs).

2. (b) Service to premise with no service agreement. If a REP finds that a current occupant at a premise for which the provider is shown as the REP of record in the ERCOT or TDU system is not the customer with whom the REP currently has a service agreement for retail electric service:

   1. (1) the REP may establish service with the occupant. The REP shall obtain verification of the occupant's authorization to establish service with the REP consistent with the requirements of §25.474 of this title (relating to Selection or Change of Retail Electric Provider); or

   2. (2) the non-affiliated REP may issue a termination notice and the affiliated REP may issue a disconnection notice to the current occupant. The notice shall contain the following:

      1. (A) The date the termination (or disconnection) will occur, provided that the date shall not be sooner than ten days from the date the notice is issued;
      2. (B) For notices issued by a non-affiliated REP to a residential or small non-residential customer, as those terms are defined in §25.43 of this title (relating to Provider of Last Resort (POLR)), that the customer's service shall be transferred to the affiliated REP if the customer does not respond within ten days after issuance of the notice;
      3. (C) For notices issued by the affiliated REP to residential and small non-residential customers, as those terms are defined in §25.43 of this title, that the customer's service shall be disconnected if the customer does not respond within ten days after the issuance of the notice;
      4. (D) For notices issued to large non-residential customers, as that term is defined in §25.43 of this title, that the customer's service shall be transferred to the provider of last resort if the customer does not respond within ten days after the issuance of the notice;
      5. (E) What actions the customer must take if that customer believes the notice is in error or desires to establish service with the REP; and
      6. (F) A statement that informs the customer of the right to obtain service from another licensed REP and that information about other REPs can be obtained from the commission.
3. (c) Termination of service to residential and small non-residential customer by non-affiliated REPs. If a non-affiliated REP terminates service to an occupant in accordance with this section, the REP shall transfer that occupant to the affiliated REP using the procedures established by the independent organization in order to effectuate the termination of contract provision in §25.482(b) of this title (relating to Termination of Contract).
4. (d) Disconnection of residential and small non-residential customer by affiliated REP. If an affiliated REP disconnects service with the occupant, it shall comply with the requirements of §25.483 of this title (relating to Disconnection of Service).
5. (e) Termination of service to a large non-residential customer. If a REP terminates electric service to a large non-residential occupant in accordance with this section, the REP shall transfer that occupant to the provider of last resort.
6. (f) Prohibition on using move-out transactions. A REP may not submit a move-out transaction, as defined by ERCOT protocols, to effectuate the transfers under this section.

Source Note:The provisions of this §25.488 adopted to be effective August 4, 2003, 28 TexReg 6005.