Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS › Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS › Subchapter R - CUSTOMER PROTECTION RULES FOR RETAIL ELECTRIC SERVICE PROVIDERS › Section 25.499 - Acknowledgement of Risk Requirements for Certain Commercial Contracts

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. This section establishes
				  requirements for the offering of wholesale indexed products and products
				  containing separate assessment of ancillary services costs to a customer other
				  than a residential or small commercial customer.
(b) Application. This section applies to all
				  retail electric providers (REPs), aggregators and brokers. The Acknowledgement
				  of Risk (AOR) for wholesale indexed products required by this section is
				  effective for enrollments or re-enrollments entered into on or after September
				  1, 2021. The AOR required for other product types required under this section
				  are effective for enrollments or re-enrollments entered into on or after April
				  1, 2021. REPs are not required to modify contract documents related to
				  contracts or enrollments entered into before this date.
(c) Definitions. The definitions set forth in
				  §25.5 (relating to Definitions) and §
										RSA
				  25.471<subdiv>(d)</subdiv>
				  (relating to General Provisions of Customer Protection Rules) of this title
				  apply to this section. In addition, wholesale indexed product, when used in
				  this section, means a retail electric product in which the price a customer
				  pays for electricity includes a direct pass-through of real-time settlement
				  point prices determined by the independent organization certified under the
				  Public Utility Regulatory Act (PURA) §39.151 for the ERCOT power
				  region.
(d) Acknowledgement of Risk
				  (AOR). Before a customer other than a residential or small commercial customer
				  is enrolled in a wholesale indexed product, or a product that contains a
				  separate assessment of ancillary service charges, an aggregator, broker, or REP
				  must obtain an AOR, signed by the customer, verifying that the customer accepts
				  the potential price risks associated with the product.
(1) For Wholesale Indexed Products, the AOR
				  must include the following statement in clear, boldfaced text: "I understand
				  that the volatility and fluctuation of wholesale energy pricing may cause my
				  energy bill to be multiple times higher in a month in which wholesale energy
				  prices are high. I understand that I will be responsible for charges caused by
				  fluctuations in wholesale energy prices."
(2) For products that contain a separate
				  assessment of ancillary service charges the AOR must include the following
				  statement in clear, boldfaced text: "I understand that my energy bill may
				  include a separate assessment of ancillary service charges, which may cause my
				  energy bill to be multiple times higher in a month in which ancillary services
				  charges are high. I understand that I will be responsible for charges caused by
				  fluctuations in ancillary service charges."
(3) An AOR may be included as an addendum to
				  a contract.
(4) A REP, aggregator,
				  or broker must retain a record of the AORs for each customer during the time
				  the applicable plan is in effect and for four years after the contract ceases
				  to be in effect for any customer. A REP must provide such documents at the
				  request of the commission or its staff.