Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS › Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS › Subchapter B - CUSTOMER SERVICE AND PROTECTION › Section 25.43 - Provider of Last Resort (POLR)

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. This
				  section establishes the requirements for Provider of Last Resort (POLR) service
				  and ensures that it is available to any requesting retail customer and any
				  retail customer who is transferred to another retail electric provider (REP) by
				  the Electric Reliability Council of Texas (ERCOT) because the customer's REP
				  failed to provide service to the customer or failed to meet its obligations to
				  the independent organization.
(b)
				  Application. The provisions of this section relating to the selection of REPs
				  providing POLR service apply to all REPs that are serving retail customers in
				  transmission and distribution utility (TDU) service areas. This section does
				  not apply when an electric cooperative or a municipally owned utility (MOU)
				  designates a POLR provider for its certificated service area. However, this
				  section is applicable when an electric cooperative delegates its authority to
				  the commission in accordance with subsection (r) of this section to select a
				  POLR provider for the electric cooperative's service area. All filings made
				  with the commission pursuant to this section, including filings subject to a
				  claim of confidentiality, must be filed with the commission's Filing Clerk in
				  accordance with the commission's Procedural Rules, Chapter 22, Subchapter E, of
				  this title (relating to Pleadings and other Documents).
(c) Definitions. The following terms when
				  used in this section have the following meanings, unless the context indicates
				  otherwise:
(1) Affiliate--As defined in §
											25.107
				  of this title (relating to Certification of Retail Electric Providers
				  (REPs).
(2) Basic firm
				  service--Electric service that is not subject to interruption for economic
				  reasons and that does not include value-added options offered in the
				  competitive market. Basic firm service excludes, among other competitively
				  offered options, emergency or back-up service, and stand-by service. For
				  purposes of this definition, the phrase "interruption for economic reasons"
				  does not mean disconnection for non-payment.
(3) Billing cycle--A period bounded by a
				  start date and stop date that REPs and TDUs use to determine when a customer
				  used electric service.
(4) Billing
				  month--Generally a calendar accounting period (approximately 30 days) for
				  recording revenue, which may or may not coincide with the period a customer's
				  consumption is recorded through the customer's meter.
(5) Business day--As defined by the ERCOT
				  Protocols.
(6) Large
				  non-residential customer--A non-residential customer who had a peak demand in
				  the previous 12-month period at or above one megawatt (MW).
(7) Large service provider (LSP)--A REP that
				  is designated to provide POLR service pursuant to subsection (j) of this
				  section.
(8) Market-based product -
				  A month-to-month product that is either offered to or matches the rate of a
				  product offered to non-POLR customers of the REP for the same TDU territory and
				  customer class. A month-to-month contract may not contain a termination fee or
				  penalty. For purposes of this section, a rate for residential customers that is
				  derived by applying a positive or negative multiplier to the rate described in
				  subsection (m)(2) of this section is not a market-based product.
(9) Mass transition--The transfer of
				  customers as represented by ESI IDs from a REP to one or more POLR providers
				  pursuant to a transaction initiated by the independent organization that
				  carries the mass transition (TS) code or other code designated by the
				  independent organization.
(10)
				  Medium non-residential customer--A non-residential retail customer who had a
				  peak demand in the previous 12-month period of 50 kilowatt (kW) or greater, but
				  less than 1,000 kW.
(11) POLR
				  area--The service area of a TDU in an area where customer choice is in
				  effect.
(12) POLR provider--A
				  volunteer retail electric provider (VREP) or LSP that may be required to
				  provide POLR service pursuant to this section.
(13) Residential customer--A retail customer
				  classified as residential by the applicable TDU tariff or, in the absence of
				  classification under a tariff, a retail customer who purchases electricity for
				  personal, family, or household purposes.
(14) Transitioned customer--A customer as
				  represented by ESI IDs that is served by a POLR provider as a result of a mass
				  transition under this section.
(15)
				  Small non-residential customer--A non-residential retail customer who had a
				  peak demand in the previous 12-month period of less than 50 kW.
(16) Voluntary retail electric provider
				  (VREP)--A REP that has volunteered to provide POLR service pursuant to
				  subsection (i) of this section.
(d) POLR
				  service.
(1) There are two types of POLR
				  providers: VREPs and LSPs.
(2) For
				  the purpose of POLR service, there are four classes of customers: residential,
				  small non-residential, medium non-residential, and large
				  non-residential.
(3) A VREP or LSP
				  may be designated to serve any or all of the four customer classes in a POLR
				  area.
(4) A POLR provider must
				  offer a basic, standard retail service package to customers it is designated to
				  serve, which is limited to:
(A) Basic firm
				  service; and
(B) Call center
				  facilities available for customer inquiries.
(5) A POLR provider must, in accordance with
				  §
													25.108
				  of this title (relating to Financial Standards for Retail Electric Providers
				  Regarding the Billing and Collection of Transition Charges), fulfill billing
				  and collection duties for REPs that have defaulted on payments to the servicer
				  of transition bonds or to TDUs.
(6)
				  Each LSP's customer billing for residential customers taking POLR service under
				  a rate prescribed by subsection (m)(2) of this section must contain notice to
				  the customer that other competitive products or services may be available from
				  the LSP or another REP. The notice must also include contact information for
				  the LSP, and the Power to Choose website, and must include a notice from the
				  commission in the form of a bill insert or a bill message with the header "An
				  Important Message from the Public Utility Commission Regarding Your Electric
				  Service" addressing why the customer has been transitioned to an LSP, a
				  description of the purpose and nature of POLR service, and explaining that more
				  information on competitive markets can be found at
www.powertochoose.org
, or toll-free
				  at 1-866-PWR-4-TEX (1-866-797-4839).