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Statutes > Texas > Utilities-code > Title-2-public-utility-regulatory-act > Chapter-17-customer-protection

UTILITIES CODE

TITLE 2. PUBLIC UTILITY REGULATORY ACT

SUBTITLE A. PROVISIONS APPLICABLE TO ALL UTILITIES

CHAPTER 17. CUSTOMER PROTECTION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 17.001. CUSTOMER PROTECTION POLICY. (a) The legislature

finds that new developments in telecommunications services and

the production and delivery of electricity, as well as changes in

market structure, marketing techniques, and technology, make it

essential that customers have safeguards against fraudulent,

unfair, misleading, deceptive, or anticompetitive business

practices and against businesses that do not have the technical

and financial resources to provide adequate service.

(b) The purpose of this chapter is to establish retail customer

protection standards and confer on the commission authority to

adopt and enforce rules to protect retail customers from

fraudulent, unfair, misleading, deceptive, or anticompetitive

practices.

(c) Nothing in this section shall be construed to abridge

customer rights set forth in commission rules in effect at the

time of the enactment of this chapter.

(d) This chapter does not limit the constitutional, statutory,

and common law authority of the office of the attorney general.

(e) Nothing in this chapter authorizes a customer to receive

retail electric service from a person other than a certificated

retail electric utility.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.002. DEFINITIONS. In this chapter:

(1) "Billing agent" means any entity that submits charges to the

billing utility on behalf of itself or any provider of a product

or service.

(2) "Billing utility" means any telecommunications provider, as

defined by Section 51.002, retail electric provider, or electric

utility that issues a bill directly to a customer for any

telecommunications or electric product or service.

(3) "Certificated telecommunications utility" means a

telecommunications utility that has been granted either a

certificate of convenience and necessity, a certificate of

operating authority, or a service provider certificate of

operating authority.

(4) "Customer" means any person in whose name telephone or

retail electric service is billed, including individuals,

governmental units at all levels of government, corporate

entities, and any other entity with legal capacity to be billed

for telephone or retail electric service.

(5) "Electric utility" has the meaning assigned by Section

31.002.

(6) "Retail electric provider" means a person that sells

electric energy to retail customers in this state after the

legislature authorizes a customer to receive retail electric

service from a person other than a certificated retail electric

utility.

(7) "Service provider" means any entity that offers a product or

service to a customer and that directly or indirectly charges to

or collects from a customer's bill an amount for the product or

service on a customer's bill received from a billing utility.

(8) "Telecommunications utility" has the meaning assigned by

Section 51.002.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.003. CUSTOMER AWARENESS. (a) The commission shall

promote public awareness of changes in the electric and

telecommunications markets, provide customers with information

necessary to make informed choices about available options, and

ensure that customers have an adequate understanding of their

rights.

(b) The commission shall compile a report on customer service at

least once each year showing the comparative customer information

from reports given to the commission it deems necessary.

(c) The commission shall adopt and enforce rules to require a

certificated telecommunications utility, a retail electric

provider, or an electric utility to give clear, uniform, and

understandable information to customers about rates, terms,

services, customer rights, and other necessary information as

determined by the commission. The rules must include a list of

defined terms common to the telecommunications and electricity

industries and require that applicable terms be labeled uniformly

on each retail bill sent to a customer by a certificated

telecommunications utility, retail electric provider, or electric

utility to facilitate consumer understanding of relevant billing

elements.

(d) Customer awareness efforts by the commission shall be

conducted in English and Spanish and any other language as

necessary.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

648, Sec. 1, eff. September 1, 2009.

Sec. 17.004. CUSTOMER PROTECTION STANDARDS. (a) All buyers of

telecommunications and retail electric services are entitled to:

(1) protection from fraudulent, unfair, misleading, deceptive,

or anticompetitive practices, including protection from being

billed for services that were not authorized or provided;

(2) choice of a telecommunications service provider, a retail

electric provider, or an electric utility, where that choice is

permitted by law, and to have that choice honored;

(3) information in English and Spanish and any other language as

the commission deems necessary concerning rates, key terms and

conditions, and the basis for any claim of environmental benefits

of certain production facilities;

(4) protection from discrimination on the basis of race, color,

sex, nationality, religion, marital status, income level, or

source of income and from unreasonable discrimination on the

basis of geographic location;

(5) impartial and prompt resolution of disputes with a

certificated telecommunications utility, a retail electric

provider, or an electric utility and disputes with a

telecommunications service provider related to unauthorized

charges and switching of service;

(6) privacy of customer consumption and credit information;

(7) accuracy of metering and billing;

(8) bills presented in a clear, readable format and

easy-to-understand language that uses defined terms as required

by commission rules adopted under Section 17.003;

(9) information in English and Spanish and any other language as

the commission deems necessary concerning low-income assistance

programs and deferred payment plans;

(10) all consumer protections and disclosures established by the

Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.) and

the Truth in Lending Act (15 U.S.C. Section 1601 et seq.); and

(11) after retail competition begins as authorized by the

legislature, programs provided by retail electric providers that

offer eligible low-income customers energy efficiency programs,

an affordable rate package, and bill payment assistance programs

designed to reduce uncollectible accounts.

(b) The commission may adopt and enforce rules as necessary or

appropriate to carry out this section, including rules for

minimum service standards for a certificated telecommunications

utility, a retail electric provider, or an electric utility

relating to customer deposits and the extension of credit,

switching fees, levelized billing programs, and termination of

service and to energy efficiency programs, an affordable rate

package, and bill payment assistance programs for low-income

customers. The commission may waive language requirements for

good cause.

(c) The commission shall request the comments of the office of

the attorney general in developing the rules that may be

necessary or appropriate to carry out this section.

(d) The commission shall coordinate its enforcement efforts

regarding the prosecution of fraudulent, misleading, deceptive,

and anticompetitive business practices with the office of the

attorney general in order to ensure consistent treatment of

specific alleged violations.

(e) Nothing in this section shall be construed to abridge

customer rights set forth in commission rules or to abridge the

rights of low-income customers to receive benefits through

pending or operating programs in effect at the time of the

enactment of this chapter.

(f) The commission shall adopt rules to provide automatic

enrollment of eligible utility customers for lifeline telephone

service and reduced electric rates available to low-income

households. Each state agency, on the request of the commission,

shall assist in the adoption and implementation of those rules.

(g) Notwithstanding any other provision of this title, the rules

adopted under Subsection (b) shall provide full, concurrent

reimbursement for the costs of any programs provided under

Subsection (a)(11) and for reimbursement for the difference

between any affordable rate package provided under Subsection

(a)(11) and any rates otherwise applicable.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

648, Sec. 2, eff. September 1, 2009.

Sec. 17.005. PROTECTIONS FOR CUSTOMERS OF MUNICIPALLY OWNED

UTILITIES. A municipally owned utility may not be deemed to be a

"service provider" or "billing agent" for purposes of Sections

17.156(b) and (e). The governing body of a municipally owned

utility shall adopt, implement, and enforce rules that shall have

the effect of accomplishing the objectives set out in Sections

17.004(a) and (b) and 17.102, as to the municipally owned utility

within its certificated service area. The governing body of a

municipally owned utility or its designee shall perform the

dispute resolution function provided for by Section 17.157 for

disputes arising from services provided by the municipally owned

utility to electric customers served within the municipally owned

utility's certificated service area. With respect to electric

customers served by a municipally owned utility outside its

certificated service area or otherwise served through others'

distribution facilities, after retail competition begins as

authorized by the legislature, the provisions of this chapter as

administered by the commission apply. Nothing in this chapter

shall be deemed to apply to a wholesale customer of a municipally

owned utility.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.006. PROTECTIONS FOR CUSTOMERS OF ELECTRIC COOPERATIVES.

An electric cooperative shall not be deemed to be a "service

provider" or "billing agent" for purposes of Sections 17.156(b)

and (e). The electric cooperative shall adopt, implement, and

enforce rules that shall have the effect of accomplishing the

objectives set out in Sections 17.004(a) and (b) and 17.102. The

board of directors of the electric cooperative or its designee

shall perform the dispute resolution function provided for by

Section 17.157 for electric customers served by the electric

cooperative within its certificated service area. With respect to

electric customers served by an electric cooperative outside its

certificated service area or otherwise served through others'

distribution facilities, after the legislature authorizes retail

competition, the provisions of this chapter as administered by

the commission shall apply. Nothing in this chapter shall be

deemed to apply to a wholesale customer of an electric

cooperative.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.007. ELIGIBILITY PROCESS FOR CUSTOMER SERVICE DISCOUNTS.

The commission by rule shall provide for an integrated

eligibility process for customer service discounts, including

discounts under Sections 39.903 and 55.015.

Added by Acts 2001, 77th Leg., ch. 1451, Sec. 1, eff. Sept. 1,

2001.

Sec. 17.008. PROTECTION OF RESIDENTIAL ELECTRIC SERVICE

APPLICANTS AND CUSTOMERS. (a) In this section and in Section

17.009:

(1) "Credit history":

(A) means information regarding an individual's past history of:

(i) financial responsibility;

(ii) payment habits; or

(iii) creditworthiness; and

(B) does not include an individual's outstanding balance for

retail electric or telecommunications service.

(2) "Credit score" means a score, grade, or value that is

derived by a consumer reporting agency, as defined under Section

603(f) of the Fair Credit Reporting Act (15 U.S.C. Section

1681a(f)), using data from a credit history in any type of model,

method, or program for the purpose of grading or ranking credit

report data, whether derived electronically, from an algorithm,

through a computer software application model or program, or

through any other analogous process.

(3) "Utility payment data" means a measure that is derived by a

consumer reporting agency, as defined under Section 603(f) of the

Fair Credit Reporting Act (15 U.S.C. Section 1681a(f)), from a

model specifically designed to correlate to utility payment

histories.

(b) A retail electric provider may not deny an applicant's

request to become a residential electric service customer on the

basis of the applicant's credit history or credit score, but may

use the applicant's utility payment data until the later of

January 1, 2007, or the date on which the price to beat is no

longer in effect in the geographic area in which the customer is

located.

(c) Notwithstanding Subsection (b), while a retail electric

provider is required to provide service to a geographic area as

the affiliated retail electric provider, the provider may not

deny an applicant's request to become a residential electric

service customer within that geographic area on the basis of the

applicant's credit history, credit score, or utility payment

data.

(d) After the date described in Subsection (b), a retail

electric provider, including an affiliated retail electric

provider, may not deny an applicant's request to become a

residential electric service customer on the basis of the

applicant's credit history, credit score, or utility payment data

but may use the applicant's electric bill payment history.

(e) A retail electric provider may not use a credit score, a

credit history, or utility payment data as the basis for

determining the price for month-to-month electric service or

electric service that includes a fixed price commitment of 12

months or less:

(1) for an existing residential customer; or

(2) in response to an applicant's request to become a

residential electric service customer.

(f) After the date described in Subsection (b), on request by a

customer or former customer in this state, a retail electric

provider or electric utility shall timely provide to the customer

or former customer bill payment history information with the

retail electric provider or electric utility during the preceding

12-month period. Bill payment history information may be obtained

by the customer or former customer once during each 12-month

period without charge. If additional copies of bill payment

history information are requested during a 12-month period, the

electric service provider may charge the customer or former

customer a reasonable fee for each copy.

(g) On request by a retail electric provider, another retail

electric provider or electric utility shall timely verify

information that purports to show a customer's service and bill

payment history with the retail electric provider or electric

utility.

(h) This section does not limit a retail electric provider's

authority to require a deposit or advance payment as a condition

of service.

(i) Notwithstanding Subsection (e), a retail electric provider

may provide rewards, benefits, or credits to residential electric

service customers on the basis of the customer's payment history

for retail electric service to that provider.

Added by Acts 2005, 79th Leg., Ch.

926, Sec. 1, eff. September 1, 2005.

Sec. 17.009. PROTECTION OF RESIDENTIAL TELEPHONE SERVICE

APPLICANTS AND CUSTOMERS. (a) A provider of basic local

telecommunications services and nonbasic network services may not

deny an applicant's request to become a residential customer on

the basis of the applicant's credit history or credit score.

(b) A provider of basic local telecommunications services and

nonbasic network services may not use a credit score or credit

history as the basis for determining price for service:

(1) for an existing residential customer; or

(2) in response to an applicant's request to become a

residential customer.

(c) This section does not limit the authority of a provider of

basic local telecommunications services and nonbasic network

services to require a deposit, advance payment, or credit limit

as a condition of service.

Added by Acts 2005, 79th Leg., Ch.

926, Sec. 1, eff. September 1, 2005.

SUBCHAPTER B. CERTIFICATION, REGISTRATION, AND REPORTING

REQUIREMENTS

Sec. 17.051. ADOPTION OF RULES. (a) The commission shall adopt

rules relating to certification, registration, and reporting

requirements for a certificated telecommunications utility, a

retail electric provider, or an electric utility, as well as all

telecommunications utilities that are not dominant carriers, pay

telephone providers, qualifying facilities that are selling

capacity into the wholesale or retail market, exempt wholesale

generators, and power marketers.

(b) The rules adopted under Subsections (a) and (c) shall be

consistent with and no less effective than federal law and may

not require the disclosure of highly sensitive competitive or

trade secret information.

(c) The commission shall adopt rules governing the local

registration of retail electric providers under Section 39.358.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999. Amended by Acts 2003, 78th Leg., ch. 48, Sec. 1, eff. Sept.

1, 2003.

Sec. 17.052. SCOPE OF RULES. The commission may adopt and

enforce rules to:

(1) require certification or registration with the commission as

a condition of doing business in this state, except that this

requirement does not apply to municipally owned utilities;

(2) amend certificates or registrations to reflect changed

ownership and control;

(3) establish rules for customer service and protection;

(4) suspend or revoke certificates or registrations for repeated

violations of this chapter or commission rules, except that the

commission may not revoke a certificate of convenience and

necessity of an electric utility except as provided by Section

37.059 or a certificate of convenience and necessity of a

telecommunications utility except as provided by Section 54.008;

and

(5) order disconnection of a pay telephone service provider's

pay telephones or revocation of certification or registration for

repeated violations of this chapter or commission rules.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.053. REPORTS. The commission may require a

telecommunications service provider, a retail electric provider,

or an electric utility to submit reports to the commission

concerning any matter over which it has authority under this

chapter.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE

Sec. 17.101. POLICY. It is the policy of this state that all

customers be protected from the unauthorized switching of a

telecommunications service provider, a retail electric provider,

or an electric utility selected by the customer to provide

service, where choice is permitted by law.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.102. RULES RELATING TO CHOICE. The commission shall

adopt and enforce rules that:

(1) ensure that customers are protected from deceptive practices

employed in obtaining authorizations of service and in the

verification of change orders, including negative option

marketing, sweepstakes, and contests that cause customers to

unknowingly change their telecommunications service provider,

retail electric provider, or electric utility, where choice is

permitted by law;

(2) provide for clear, easily understandable identification, in

each bill sent to a customer, of all telecommunications service

providers, retail electric providers, or electric utilities

submitting charges on the bill;

(3) ensure that every service provider submitting charges on the

bill is clearly and easily identified on the bill along with its

services, products, and charges, using defined terms as required

by commission rules adopted under Section 17.003;

(4) provide that unauthorized changes in service be remedied at

no cost to the customer within a period established by the

commission;

(5) require refunds or credits to the customer in the event of

an unauthorized change; and

(6) provide for penalties for violations of commission rules

adopted under this section, including fines and revocation of

certificates or registrations, by this action denying the

certificated telecommunications utility, the retail electric

provider, or the electric utility the right to provide service in

this state, except that the commission may not revoke a

certificate of convenience and necessity of an electric utility

except as provided by Section 37.059 or a certificate of

convenience and necessity of a telecommunications utility except

as provided by Section 54.008.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

648, Sec. 3, eff. September 1, 2009.

SUBCHAPTER D. PROTECTION AGAINST UNAUTHORIZED CHARGES

Sec. 17.151. REQUIREMENTS FOR SUBMITTING CHARGES. (a) A

service provider, retail electric provider, or billing agent may

submit charges for a new product or service to be billed on a

customer's telephone or retail electric bill on or after the

effective date of this section only if:

(1) the service provider offering the product or service has

thoroughly informed the customer of the product or service being

offered, including all associated charges, and has explicitly

informed the customer that the associated charges for the product

or service will appear on the customer's telephone or electric

bill;

(2) the customer has clearly and explicitly consented to obtain

the product or service offered and to have the associated charges

appear on the customer's telephone or electric bill and the

consent has been verified as provided by Subsection (b);

(3) the service provider offering the product or service and any

billing agent for the service provider:

(A) has provided the customer with a toll-free telephone number

the customer may call and an address to which the customer may

write to resolve any billing dispute and to answer questions; and

(B) has contracted with the billing utility to bill for products

and services on the billing utility's bill as provided by

Subsection (c); and

(4) the service provider, retail electric provider, or billing

agent uses defined terms on the bill as required by commission

rules adopted under Section 17.003.

(b) The customer consent required by Subsection (a)(2) must be

verified by the service provider offering the product or service

by authorization from the customer. A record of the customer

consent, including verification, must be maintained by the

service provider offering the product or service for a period of

at least 24 months immediately after the consent and verification

have been obtained. The method of obtaining customer consent and

verification must include one or more of the following:

(1) written authorization from the customer;

(2) toll-free electronic authorization placed from the telephone

number that is the subject of the product or service;

(3) oral authorization obtained by an independent third party;

or

(4) any other method of authorization approved by the commission

or the Federal Communications Commission.

(c) The contract required by Subsection (a)(3)(B) must include

the service provider's name, business address, and business

telephone number and shall be maintained by the billing utility

for as long as the billing for the products and services

continues and for the 24 months immediately following the

permanent discontinuation of the billing.

(d) A service provider offering a product or service to be

charged on a customer's telephone or electric bill and any

billing agent for the service provider may not use any

fraudulent, unfair, misleading, deceptive, or anticompetitive

marketing practice to obtain customers, including the use of

negative option marketing, sweepstakes, and contests.

(e) Unless verification is required by federal law or rules

implementing federal law, Subsection (b) does not apply to

customer-initiated transactions with a certificated

telecommunications provider or an electric utility for which the

service provider has the appropriate documentation.

(f) If a service provider is notified by a billing utility that

a customer has reported to the billing utility that a charge made

by the service provider is unauthorized, the service provider

shall cease to charge the customer for the unauthorized product

or service.

(g) This section does not apply to message telecommunications

services charges that are initiated by dialing 1+, 0+, 0-,

1010XXX, or collect calls and charges for video services if the

service provider has the necessary call detail record to

establish the billing for the call or service.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

648, Sec. 4, eff. September 1, 2009.

Sec. 17.152. RESPONSIBILITIES OF BILLING UTILITY. (a) If a

customer's telephone or retail electric bill is charged for any

product or service without proper customer consent or

verification, the billing utility, on its knowledge or

notification of any unauthorized charge, shall promptly, not

later than 45 days after the date of knowledge or notification of

the charge:

(1) notify the service provider to cease charging the customer

for the unauthorized product or service;

(2) remove any unauthorized charge from the customer's bill;

(3) refund or credit to the customer all money that has been

paid by the customer for any unauthorized charge, and if the

unauthorized charge is not adjusted within three billing cycles,

shall pay interest on the amount of the unauthorized charge;

(4) on the customer's request, provide the customer with all

billing records under its control related to any unauthorized

charge within 15 business days after the date of the removal of

the unauthorized charge from the customer's bill; and

(5) maintain for at least 24 months a record of every customer

who has experienced any unauthorized charge for a product or

service on the customer's telephone or electric bill and who has

notified the billing utility of the unauthorized charge.

(b) A record required by Subsection (a)(5) shall contain for

each unauthorized charge:

(1) the name of the service provider that offered the product or

service;

(2) any affected telephone numbers or addresses;

(3) the date the customer requested that the billing utility

remove the unauthorized charge;

(4) the date the unauthorized charge was removed from the

customer's telephone or electric bill; and

(5) the date any money that the customer paid for the

unauthorized charges was refunded or credited to the customer.

(c) A billing utility may not:

(1) disconnect or terminate telecommunications or electric

service to any customer for nonpayment of an unauthorized charge;

or

(2) file an unfavorable credit report against a customer who has

not paid charges the customer has alleged were unauthorized

unless the dispute regarding the unauthorized charge is

ultimately resolved against the customer, except that the

customer shall remain obligated to pay any charges that are not

in dispute, and this subsection does not apply to those

undisputed charges.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.153. RECORDS OF DISPUTED CHARGES. (a) Every service

provider shall maintain a record of every disputed charge for a

product or service placed on a customer's bill.

(b) The record required under Subsection (a) shall contain for

every disputed charge:

(1) any affected telephone numbers or addresses;

(2) the date the customer requested that the billing utility

remove the unauthorized charge;

(3) the date the unauthorized charge was removed from the

customer's telephone or retail electric bill; and

(4) the date action was taken to refund or credit to the

customer any money that the customer paid for the unauthorized

charges.

(c) The record required by Subsection (a) shall be maintained

for at least 24 months following the completion of all steps

required by Section 17.152(a).

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.154. NOTICE. (a) A billing utility shall provide

notice of a customer's rights under this section in the manner

prescribed by the commission.

(b) Notice of a customer's rights must be provided by mail to

each residential and retail business customer within 60 days of

the effective date of this section or by inclusion in the

publication of the telephone directory next following the

effective date of this section. In addition, each billing utility

shall send the notice to new customers at the time service is

initiated or to any customer at that customer's request.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.155. PROVIDING COPY OF RECORDS. A billing utility shall

provide a copy of records maintained under Sections 17.151(c),

17.152, and 17.154 to the commission staff on request. A service

provider shall provide a copy of records maintained under

Sections 17.151(b) and 17.153 to the commission on request.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.156. VIOLATIONS. (a) If the commission finds that a

billing utility violated this subchapter, the commission may

implement penalties and other enforcement actions under Chapter

15.

(b) If the commission finds that any other service provider or

billing agent subject to this subchapter has violated this

subchapter or has knowingly provided false information to the

commission on matters subject to this subchapter, the commission

may enforce the provisions of Chapter 15 against the service

provider or billing agent as if it were regulated by the

commission.

(c) Neither the authority granted under this section nor any

other provision of this subchapter shall be construed to grant

the commission jurisdiction to regulate service providers or

billing agents who are not otherwise subject to commission

regulation, other than as specifically provided by this chapter.

(d) If the commission finds that a billing utility or service

provider repeatedly violates this subchapter, the commission may,

if the action is consistent with the public interest, suspend,

restrict, or revoke the registration or certificate of the

telecommunications service provider, retail electric provider, or

electric utility, by this action denying the telecommunications

service provider, retail electric provider, or electric utility

the right to provide service in this state, except that the

commission may not revoke a certificate of convenience and

necessity of an electric utility except as provided by Section

37.059 or a certificate of convenience and necessity of a

telecommunications utility except as provided by Section 54.008.

(e) If the commission finds that a service provider or billing

agent has repeatedly violated any provision of this subchapter,

the commission may order the billing utility to terminate billing

and collection services for that service provider or billing

agent.

(f) Nothing in this subchapter shall be construed to preclude a

billing utility from taking action on its own to terminate or

restrict its billing and collection services.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.157. DISPUTES. (a) The commission may resolve disputes

between a retail customer and a billing utility, service

provider, telecommunications utility, retail electric provider,

or electric utility.

(b) In exercising its authority under Subsection (a), the

commission may:

(1) order a billing utility, service provider, retail electric

provider, or electric utility to produce information or records;

(2) require that all contracts, bills, and other communications

from a billing utility, service provider, retail electric

provider, or electric utility display a working toll-free

telephone number that customers may call with complaints and

inquiries;

(3) require a billing utility, service provider, retail electric

provider, or electric utility to refund or credit overcharges or

unauthorized charges with interest if the billing utility,

service provider, retail electric provider, or electric utility

has failed to comply with commission rules or a contract with the

customer;

(4) order appropriate relief to ensure that a customer's choice

of a telecommunications service provider, a retail electric

provider, or an electric utility that encompasses a geographic

area in which more than one provider has been certificated is

honored;

(5) require the continuation of service to a residential or

small commercial customer while a dispute is pending regarding

charges the customer has alleged were unauthorized; and

(6) investigate an alleged violation.

(c) The commission shall adopt procedures for the resolution of

disputes in a timely manner, which in no event shall exceed 60

days.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.158. CONSISTENCY WITH FEDERAL LAW. Rules adopted by the

commission under this subchapter shall be consistent with and not

more burdensome than applicable federal laws and rules.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

State Codes and Statutes

Statutes > Texas > Utilities-code > Title-2-public-utility-regulatory-act > Chapter-17-customer-protection

UTILITIES CODE

TITLE 2. PUBLIC UTILITY REGULATORY ACT

SUBTITLE A. PROVISIONS APPLICABLE TO ALL UTILITIES

CHAPTER 17. CUSTOMER PROTECTION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 17.001. CUSTOMER PROTECTION POLICY. (a) The legislature

finds that new developments in telecommunications services and

the production and delivery of electricity, as well as changes in

market structure, marketing techniques, and technology, make it

essential that customers have safeguards against fraudulent,

unfair, misleading, deceptive, or anticompetitive business

practices and against businesses that do not have the technical

and financial resources to provide adequate service.

(b) The purpose of this chapter is to establish retail customer

protection standards and confer on the commission authority to

adopt and enforce rules to protect retail customers from

fraudulent, unfair, misleading, deceptive, or anticompetitive

practices.

(c) Nothing in this section shall be construed to abridge

customer rights set forth in commission rules in effect at the

time of the enactment of this chapter.

(d) This chapter does not limit the constitutional, statutory,

and common law authority of the office of the attorney general.

(e) Nothing in this chapter authorizes a customer to receive

retail electric service from a person other than a certificated

retail electric utility.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.002. DEFINITIONS. In this chapter:

(1) "Billing agent" means any entity that submits charges to the

billing utility on behalf of itself or any provider of a product

or service.

(2) "Billing utility" means any telecommunications provider, as

defined by Section 51.002, retail electric provider, or electric

utility that issues a bill directly to a customer for any

telecommunications or electric product or service.

(3) "Certificated telecommunications utility" means a

telecommunications utility that has been granted either a

certificate of convenience and necessity, a certificate of

operating authority, or a service provider certificate of

operating authority.

(4) "Customer" means any person in whose name telephone or

retail electric service is billed, including individuals,

governmental units at all levels of government, corporate

entities, and any other entity with legal capacity to be billed

for telephone or retail electric service.

(5) "Electric utility" has the meaning assigned by Section

31.002.

(6) "Retail electric provider" means a person that sells

electric energy to retail customers in this state after the

legislature authorizes a customer to receive retail electric

service from a person other than a certificated retail electric

utility.

(7) "Service provider" means any entity that offers a product or

service to a customer and that directly or indirectly charges to

or collects from a customer's bill an amount for the product or

service on a customer's bill received from a billing utility.

(8) "Telecommunications utility" has the meaning assigned by

Section 51.002.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.003. CUSTOMER AWARENESS. (a) The commission shall

promote public awareness of changes in the electric and

telecommunications markets, provide customers with information

necessary to make informed choices about available options, and

ensure that customers have an adequate understanding of their

rights.

(b) The commission shall compile a report on customer service at

least once each year showing the comparative customer information

from reports given to the commission it deems necessary.

(c) The commission shall adopt and enforce rules to require a

certificated telecommunications utility, a retail electric

provider, or an electric utility to give clear, uniform, and

understandable information to customers about rates, terms,

services, customer rights, and other necessary information as

determined by the commission. The rules must include a list of

defined terms common to the telecommunications and electricity

industries and require that applicable terms be labeled uniformly

on each retail bill sent to a customer by a certificated

telecommunications utility, retail electric provider, or electric

utility to facilitate consumer understanding of relevant billing

elements.

(d) Customer awareness efforts by the commission shall be

conducted in English and Spanish and any other language as

necessary.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

648, Sec. 1, eff. September 1, 2009.

Sec. 17.004. CUSTOMER PROTECTION STANDARDS. (a) All buyers of

telecommunications and retail electric services are entitled to:

(1) protection from fraudulent, unfair, misleading, deceptive,

or anticompetitive practices, including protection from being

billed for services that were not authorized or provided;

(2) choice of a telecommunications service provider, a retail

electric provider, or an electric utility, where that choice is

permitted by law, and to have that choice honored;

(3) information in English and Spanish and any other language as

the commission deems necessary concerning rates, key terms and

conditions, and the basis for any claim of environmental benefits

of certain production facilities;

(4) protection from discrimination on the basis of race, color,

sex, nationality, religion, marital status, income level, or

source of income and from unreasonable discrimination on the

basis of geographic location;

(5) impartial and prompt resolution of disputes with a

certificated telecommunications utility, a retail electric

provider, or an electric utility and disputes with a

telecommunications service provider related to unauthorized

charges and switching of service;

(6) privacy of customer consumption and credit information;

(7) accuracy of metering and billing;

(8) bills presented in a clear, readable format and

easy-to-understand language that uses defined terms as required

by commission rules adopted under Section 17.003;

(9) information in English and Spanish and any other language as

the commission deems necessary concerning low-income assistance

programs and deferred payment plans;

(10) all consumer protections and disclosures established by the

Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.) and

the Truth in Lending Act (15 U.S.C. Section 1601 et seq.); and

(11) after retail competition begins as authorized by the

legislature, programs provided by retail electric providers that

offer eligible low-income customers energy efficiency programs,

an affordable rate package, and bill payment assistance programs

designed to reduce uncollectible accounts.

(b) The commission may adopt and enforce rules as necessary or

appropriate to carry out this section, including rules for

minimum service standards for a certificated telecommunications

utility, a retail electric provider, or an electric utility

relating to customer deposits and the extension of credit,

switching fees, levelized billing programs, and termination of

service and to energy efficiency programs, an affordable rate

package, and bill payment assistance programs for low-income

customers. The commission may waive language requirements for

good cause.

(c) The commission shall request the comments of the office of

the attorney general in developing the rules that may be

necessary or appropriate to carry out this section.

(d) The commission shall coordinate its enforcement efforts

regarding the prosecution of fraudulent, misleading, deceptive,

and anticompetitive business practices with the office of the

attorney general in order to ensure consistent treatment of

specific alleged violations.

(e) Nothing in this section shall be construed to abridge

customer rights set forth in commission rules or to abridge the

rights of low-income customers to receive benefits through

pending or operating programs in effect at the time of the

enactment of this chapter.

(f) The commission shall adopt rules to provide automatic

enrollment of eligible utility customers for lifeline telephone

service and reduced electric rates available to low-income

households. Each state agency, on the request of the commission,

shall assist in the adoption and implementation of those rules.

(g) Notwithstanding any other provision of this title, the rules

adopted under Subsection (b) shall provide full, concurrent

reimbursement for the costs of any programs provided under

Subsection (a)(11) and for reimbursement for the difference

between any affordable rate package provided under Subsection

(a)(11) and any rates otherwise applicable.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

648, Sec. 2, eff. September 1, 2009.

Sec. 17.005. PROTECTIONS FOR CUSTOMERS OF MUNICIPALLY OWNED

UTILITIES. A municipally owned utility may not be deemed to be a

"service provider" or "billing agent" for purposes of Sections

17.156(b) and (e). The governing body of a municipally owned

utility shall adopt, implement, and enforce rules that shall have

the effect of accomplishing the objectives set out in Sections

17.004(a) and (b) and 17.102, as to the municipally owned utility

within its certificated service area. The governing body of a

municipally owned utility or its designee shall perform the

dispute resolution function provided for by Section 17.157 for

disputes arising from services provided by the municipally owned

utility to electric customers served within the municipally owned

utility's certificated service area. With respect to electric

customers served by a municipally owned utility outside its

certificated service area or otherwise served through others'

distribution facilities, after retail competition begins as

authorized by the legislature, the provisions of this chapter as

administered by the commission apply. Nothing in this chapter

shall be deemed to apply to a wholesale customer of a municipally

owned utility.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.006. PROTECTIONS FOR CUSTOMERS OF ELECTRIC COOPERATIVES.

An electric cooperative shall not be deemed to be a "service

provider" or "billing agent" for purposes of Sections 17.156(b)

and (e). The electric cooperative shall adopt, implement, and

enforce rules that shall have the effect of accomplishing the

objectives set out in Sections 17.004(a) and (b) and 17.102. The

board of directors of the electric cooperative or its designee

shall perform the dispute resolution function provided for by

Section 17.157 for electric customers served by the electric

cooperative within its certificated service area. With respect to

electric customers served by an electric cooperative outside its

certificated service area or otherwise served through others'

distribution facilities, after the legislature authorizes retail

competition, the provisions of this chapter as administered by

the commission shall apply. Nothing in this chapter shall be

deemed to apply to a wholesale customer of an electric

cooperative.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.007. ELIGIBILITY PROCESS FOR CUSTOMER SERVICE DISCOUNTS.

The commission by rule shall provide for an integrated

eligibility process for customer service discounts, including

discounts under Sections 39.903 and 55.015.

Added by Acts 2001, 77th Leg., ch. 1451, Sec. 1, eff. Sept. 1,

2001.

Sec. 17.008. PROTECTION OF RESIDENTIAL ELECTRIC SERVICE

APPLICANTS AND CUSTOMERS. (a) In this section and in Section

17.009:

(1) "Credit history":

(A) means information regarding an individual's past history of:

(i) financial responsibility;

(ii) payment habits; or

(iii) creditworthiness; and

(B) does not include an individual's outstanding balance for

retail electric or telecommunications service.

(2) "Credit score" means a score, grade, or value that is

derived by a consumer reporting agency, as defined under Section

603(f) of the Fair Credit Reporting Act (15 U.S.C. Section

1681a(f)), using data from a credit history in any type of model,

method, or program for the purpose of grading or ranking credit

report data, whether derived electronically, from an algorithm,

through a computer software application model or program, or

through any other analogous process.

(3) "Utility payment data" means a measure that is derived by a

consumer reporting agency, as defined under Section 603(f) of the

Fair Credit Reporting Act (15 U.S.C. Section 1681a(f)), from a

model specifically designed to correlate to utility payment

histories.

(b) A retail electric provider may not deny an applicant's

request to become a residential electric service customer on the

basis of the applicant's credit history or credit score, but may

use the applicant's utility payment data until the later of

January 1, 2007, or the date on which the price to beat is no

longer in effect in the geographic area in which the customer is

located.

(c) Notwithstanding Subsection (b), while a retail electric

provider is required to provide service to a geographic area as

the affiliated retail electric provider, the provider may not

deny an applicant's request to become a residential electric

service customer within that geographic area on the basis of the

applicant's credit history, credit score, or utility payment

data.

(d) After the date described in Subsection (b), a retail

electric provider, including an affiliated retail electric

provider, may not deny an applicant's request to become a

residential electric service customer on the basis of the

applicant's credit history, credit score, or utility payment data

but may use the applicant's electric bill payment history.

(e) A retail electric provider may not use a credit score, a

credit history, or utility payment data as the basis for

determining the price for month-to-month electric service or

electric service that includes a fixed price commitment of 12

months or less:

(1) for an existing residential customer; or

(2) in response to an applicant's request to become a

residential electric service customer.

(f) After the date described in Subsection (b), on request by a

customer or former customer in this state, a retail electric

provider or electric utility shall timely provide to the customer

or former customer bill payment history information with the

retail electric provider or electric utility during the preceding

12-month period. Bill payment history information may be obtained

by the customer or former customer once during each 12-month

period without charge. If additional copies of bill payment

history information are requested during a 12-month period, the

electric service provider may charge the customer or former

customer a reasonable fee for each copy.

(g) On request by a retail electric provider, another retail

electric provider or electric utility shall timely verify

information that purports to show a customer's service and bill

payment history with the retail electric provider or electric

utility.

(h) This section does not limit a retail electric provider's

authority to require a deposit or advance payment as a condition

of service.

(i) Notwithstanding Subsection (e), a retail electric provider

may provide rewards, benefits, or credits to residential electric

service customers on the basis of the customer's payment history

for retail electric service to that provider.

Added by Acts 2005, 79th Leg., Ch.

926, Sec. 1, eff. September 1, 2005.

Sec. 17.009. PROTECTION OF RESIDENTIAL TELEPHONE SERVICE

APPLICANTS AND CUSTOMERS. (a) A provider of basic local

telecommunications services and nonbasic network services may not

deny an applicant's request to become a residential customer on

the basis of the applicant's credit history or credit score.

(b) A provider of basic local telecommunications services and

nonbasic network services may not use a credit score or credit

history as the basis for determining price for service:

(1) for an existing residential customer; or

(2) in response to an applicant's request to become a

residential customer.

(c) This section does not limit the authority of a provider of

basic local telecommunications services and nonbasic network

services to require a deposit, advance payment, or credit limit

as a condition of service.

Added by Acts 2005, 79th Leg., Ch.

926, Sec. 1, eff. September 1, 2005.

SUBCHAPTER B. CERTIFICATION, REGISTRATION, AND REPORTING

REQUIREMENTS

Sec. 17.051. ADOPTION OF RULES. (a) The commission shall adopt

rules relating to certification, registration, and reporting

requirements for a certificated telecommunications utility, a

retail electric provider, or an electric utility, as well as all

telecommunications utilities that are not dominant carriers, pay

telephone providers, qualifying facilities that are selling

capacity into the wholesale or retail market, exempt wholesale

generators, and power marketers.

(b) The rules adopted under Subsections (a) and (c) shall be

consistent with and no less effective than federal law and may

not require the disclosure of highly sensitive competitive or

trade secret information.

(c) The commission shall adopt rules governing the local

registration of retail electric providers under Section 39.358.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999. Amended by Acts 2003, 78th Leg., ch. 48, Sec. 1, eff. Sept.

1, 2003.

Sec. 17.052. SCOPE OF RULES. The commission may adopt and

enforce rules to:

(1) require certification or registration with the commission as

a condition of doing business in this state, except that this

requirement does not apply to municipally owned utilities;

(2) amend certificates or registrations to reflect changed

ownership and control;

(3) establish rules for customer service and protection;

(4) suspend or revoke certificates or registrations for repeated

violations of this chapter or commission rules, except that the

commission may not revoke a certificate of convenience and

necessity of an electric utility except as provided by Section

37.059 or a certificate of convenience and necessity of a

telecommunications utility except as provided by Section 54.008;

and

(5) order disconnection of a pay telephone service provider's

pay telephones or revocation of certification or registration for

repeated violations of this chapter or commission rules.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.053. REPORTS. The commission may require a

telecommunications service provider, a retail electric provider,

or an electric utility to submit reports to the commission

concerning any matter over which it has authority under this

chapter.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE

Sec. 17.101. POLICY. It is the policy of this state that all

customers be protected from the unauthorized switching of a

telecommunications service provider, a retail electric provider,

or an electric utility selected by the customer to provide

service, where choice is permitted by law.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.102. RULES RELATING TO CHOICE. The commission shall

adopt and enforce rules that:

(1) ensure that customers are protected from deceptive practices

employed in obtaining authorizations of service and in the

verification of change orders, including negative option

marketing, sweepstakes, and contests that cause customers to

unknowingly change their telecommunications service provider,

retail electric provider, or electric utility, where choice is

permitted by law;

(2) provide for clear, easily understandable identification, in

each bill sent to a customer, of all telecommunications service

providers, retail electric providers, or electric utilities

submitting charges on the bill;

(3) ensure that every service provider submitting charges on the

bill is clearly and easily identified on the bill along with its

services, products, and charges, using defined terms as required

by commission rules adopted under Section 17.003;

(4) provide that unauthorized changes in service be remedied at

no cost to the customer within a period established by the

commission;

(5) require refunds or credits to the customer in the event of

an unauthorized change; and

(6) provide for penalties for violations of commission rules

adopted under this section, including fines and revocation of

certificates or registrations, by this action denying the

certificated telecommunications utility, the retail electric

provider, or the electric utility the right to provide service in

this state, except that the commission may not revoke a

certificate of convenience and necessity of an electric utility

except as provided by Section 37.059 or a certificate of

convenience and necessity of a telecommunications utility except

as provided by Section 54.008.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

648, Sec. 3, eff. September 1, 2009.

SUBCHAPTER D. PROTECTION AGAINST UNAUTHORIZED CHARGES

Sec. 17.151. REQUIREMENTS FOR SUBMITTING CHARGES. (a) A

service provider, retail electric provider, or billing agent may

submit charges for a new product or service to be billed on a

customer's telephone or retail electric bill on or after the

effective date of this section only if:

(1) the service provider offering the product or service has

thoroughly informed the customer of the product or service being

offered, including all associated charges, and has explicitly

informed the customer that the associated charges for the product

or service will appear on the customer's telephone or electric

bill;

(2) the customer has clearly and explicitly consented to obtain

the product or service offered and to have the associated charges

appear on the customer's telephone or electric bill and the

consent has been verified as provided by Subsection (b);

(3) the service provider offering the product or service and any

billing agent for the service provider:

(A) has provided the customer with a toll-free telephone number

the customer may call and an address to which the customer may

write to resolve any billing dispute and to answer questions; and

(B) has contracted with the billing utility to bill for products

and services on the billing utility's bill as provided by

Subsection (c); and

(4) the service provider, retail electric provider, or billing

agent uses defined terms on the bill as required by commission

rules adopted under Section 17.003.

(b) The customer consent required by Subsection (a)(2) must be

verified by the service provider offering the product or service

by authorization from the customer. A record of the customer

consent, including verification, must be maintained by the

service provider offering the product or service for a period of

at least 24 months immediately after the consent and verification

have been obtained. The method of obtaining customer consent and

verification must include one or more of the following:

(1) written authorization from the customer;

(2) toll-free electronic authorization placed from the telephone

number that is the subject of the product or service;

(3) oral authorization obtained by an independent third party;

or

(4) any other method of authorization approved by the commission

or the Federal Communications Commission.

(c) The contract required by Subsection (a)(3)(B) must include

the service provider's name, business address, and business

telephone number and shall be maintained by the billing utility

for as long as the billing for the products and services

continues and for the 24 months immediately following the

permanent discontinuation of the billing.

(d) A service provider offering a product or service to be

charged on a customer's telephone or electric bill and any

billing agent for the service provider may not use any

fraudulent, unfair, misleading, deceptive, or anticompetitive

marketing practice to obtain customers, including the use of

negative option marketing, sweepstakes, and contests.

(e) Unless verification is required by federal law or rules

implementing federal law, Subsection (b) does not apply to

customer-initiated transactions with a certificated

telecommunications provider or an electric utility for which the

service provider has the appropriate documentation.

(f) If a service provider is notified by a billing utility that

a customer has reported to the billing utility that a charge made

by the service provider is unauthorized, the service provider

shall cease to charge the customer for the unauthorized product

or service.

(g) This section does not apply to message telecommunications

services charges that are initiated by dialing 1+, 0+, 0-,

1010XXX, or collect calls and charges for video services if the

service provider has the necessary call detail record to

establish the billing for the call or service.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

648, Sec. 4, eff. September 1, 2009.

Sec. 17.152. RESPONSIBILITIES OF BILLING UTILITY. (a) If a

customer's telephone or retail electric bill is charged for any

product or service without proper customer consent or

verification, the billing utility, on its knowledge or

notification of any unauthorized charge, shall promptly, not

later than 45 days after the date of knowledge or notification of

the charge:

(1) notify the service provider to cease charging the customer

for the unauthorized product or service;

(2) remove any unauthorized charge from the customer's bill;

(3) refund or credit to the customer all money that has been

paid by the customer for any unauthorized charge, and if the

unauthorized charge is not adjusted within three billing cycles,

shall pay interest on the amount of the unauthorized charge;

(4) on the customer's request, provide the customer with all

billing records under its control related to any unauthorized

charge within 15 business days after the date of the removal of

the unauthorized charge from the customer's bill; and

(5) maintain for at least 24 months a record of every customer

who has experienced any unauthorized charge for a product or

service on the customer's telephone or electric bill and who has

notified the billing utility of the unauthorized charge.

(b) A record required by Subsection (a)(5) shall contain for

each unauthorized charge:

(1) the name of the service provider that offered the product or

service;

(2) any affected telephone numbers or addresses;

(3) the date the customer requested that the billing utility

remove the unauthorized charge;

(4) the date the unauthorized charge was removed from the

customer's telephone or electric bill; and

(5) the date any money that the customer paid for the

unauthorized charges was refunded or credited to the customer.

(c) A billing utility may not:

(1) disconnect or terminate telecommunications or electric

service to any customer for nonpayment of an unauthorized charge;

or

(2) file an unfavorable credit report against a customer who has

not paid charges the customer has alleged were unauthorized

unless the dispute regarding the unauthorized charge is

ultimately resolved against the customer, except that the

customer shall remain obligated to pay any charges that are not

in dispute, and this subsection does not apply to those

undisputed charges.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.153. RECORDS OF DISPUTED CHARGES. (a) Every service

provider shall maintain a record of every disputed charge for a

product or service placed on a customer's bill.

(b) The record required under Subsection (a) shall contain for

every disputed charge:

(1) any affected telephone numbers or addresses;

(2) the date the customer requested that the billing utility

remove the unauthorized charge;

(3) the date the unauthorized charge was removed from the

customer's telephone or retail electric bill; and

(4) the date action was taken to refund or credit to the

customer any money that the customer paid for the unauthorized

charges.

(c) The record required by Subsection (a) shall be maintained

for at least 24 months following the completion of all steps

required by Section 17.152(a).

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.154. NOTICE. (a) A billing utility shall provide

notice of a customer's rights under this section in the manner

prescribed by the commission.

(b) Notice of a customer's rights must be provided by mail to

each residential and retail business customer within 60 days of

the effective date of this section or by inclusion in the

publication of the telephone directory next following the

effective date of this section. In addition, each billing utility

shall send the notice to new customers at the time service is

initiated or to any customer at that customer's request.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.155. PROVIDING COPY OF RECORDS. A billing utility shall

provide a copy of records maintained under Sections 17.151(c),

17.152, and 17.154 to the commission staff on request. A service

provider shall provide a copy of records maintained under

Sections 17.151(b) and 17.153 to the commission on request.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.156. VIOLATIONS. (a) If the commission finds that a

billing utility violated this subchapter, the commission may

implement penalties and other enforcement actions under Chapter

15.

(b) If the commission finds that any other service provider or

billing agent subject to this subchapter has violated this

subchapter or has knowingly provided false information to the

commission on matters subject to this subchapter, the commission

may enforce the provisions of Chapter 15 against the service

provider or billing agent as if it were regulated by the

commission.

(c) Neither the authority granted under this section nor any

other provision of this subchapter shall be construed to grant

the commission jurisdiction to regulate service providers or

billing agents who are not otherwise subject to commission

regulation, other than as specifically provided by this chapter.

(d) If the commission finds that a billing utility or service

provider repeatedly violates this subchapter, the commission may,

if the action is consistent with the public interest, suspend,

restrict, or revoke the registration or certificate of the

telecommunications service provider, retail electric provider, or

electric utility, by this action denying the telecommunications

service provider, retail electric provider, or electric utility

the right to provide service in this state, except that the

commission may not revoke a certificate of convenience and

necessity of an electric utility except as provided by Section

37.059 or a certificate of convenience and necessity of a

telecommunications utility except as provided by Section 54.008.

(e) If the commission finds that a service provider or billing

agent has repeatedly violated any provision of this subchapter,

the commission may order the billing utility to terminate billing

and collection services for that service provider or billing

agent.

(f) Nothing in this subchapter shall be construed to preclude a

billing utility from taking action on its own to terminate or

restrict its billing and collection services.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.157. DISPUTES. (a) The commission may resolve disputes

between a retail customer and a billing utility, service

provider, telecommunications utility, retail electric provider,

or electric utility.

(b) In exercising its authority under Subsection (a), the

commission may:

(1) order a billing utility, service provider, retail electric

provider, or electric utility to produce information or records;

(2) require that all contracts, bills, and other communications

from a billing utility, service provider, retail electric

provider, or electric utility display a working toll-free

telephone number that customers may call with complaints and

inquiries;

(3) require a billing utility, service provider, retail electric

provider, or electric utility to refund or credit overcharges or

unauthorized charges with interest if the billing utility,

service provider, retail electric provider, or electric utility

has failed to comply with commission rules or a contract with the

customer;

(4) order appropriate relief to ensure that a customer's choice

of a telecommunications service provider, a retail electric

provider, or an electric utility that encompasses a geographic

area in which more than one provider has been certificated is

honored;

(5) require the continuation of service to a residential or

small commercial customer while a dispute is pending regarding

charges the customer has alleged were unauthorized; and

(6) investigate an alleged violation.

(c) The commission shall adopt procedures for the resolution of

disputes in a timely manner, which in no event shall exceed 60

days.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.158. CONSISTENCY WITH FEDERAL LAW. Rules adopted by the

commission under this subchapter shall be consistent with and not

more burdensome than applicable federal laws and rules.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Utilities-code > Title-2-public-utility-regulatory-act > Chapter-17-customer-protection

UTILITIES CODE

TITLE 2. PUBLIC UTILITY REGULATORY ACT

SUBTITLE A. PROVISIONS APPLICABLE TO ALL UTILITIES

CHAPTER 17. CUSTOMER PROTECTION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 17.001. CUSTOMER PROTECTION POLICY. (a) The legislature

finds that new developments in telecommunications services and

the production and delivery of electricity, as well as changes in

market structure, marketing techniques, and technology, make it

essential that customers have safeguards against fraudulent,

unfair, misleading, deceptive, or anticompetitive business

practices and against businesses that do not have the technical

and financial resources to provide adequate service.

(b) The purpose of this chapter is to establish retail customer

protection standards and confer on the commission authority to

adopt and enforce rules to protect retail customers from

fraudulent, unfair, misleading, deceptive, or anticompetitive

practices.

(c) Nothing in this section shall be construed to abridge

customer rights set forth in commission rules in effect at the

time of the enactment of this chapter.

(d) This chapter does not limit the constitutional, statutory,

and common law authority of the office of the attorney general.

(e) Nothing in this chapter authorizes a customer to receive

retail electric service from a person other than a certificated

retail electric utility.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.002. DEFINITIONS. In this chapter:

(1) "Billing agent" means any entity that submits charges to the

billing utility on behalf of itself or any provider of a product

or service.

(2) "Billing utility" means any telecommunications provider, as

defined by Section 51.002, retail electric provider, or electric

utility that issues a bill directly to a customer for any

telecommunications or electric product or service.

(3) "Certificated telecommunications utility" means a

telecommunications utility that has been granted either a

certificate of convenience and necessity, a certificate of

operating authority, or a service provider certificate of

operating authority.

(4) "Customer" means any person in whose name telephone or

retail electric service is billed, including individuals,

governmental units at all levels of government, corporate

entities, and any other entity with legal capacity to be billed

for telephone or retail electric service.

(5) "Electric utility" has the meaning assigned by Section

31.002.

(6) "Retail electric provider" means a person that sells

electric energy to retail customers in this state after the

legislature authorizes a customer to receive retail electric

service from a person other than a certificated retail electric

utility.

(7) "Service provider" means any entity that offers a product or

service to a customer and that directly or indirectly charges to

or collects from a customer's bill an amount for the product or

service on a customer's bill received from a billing utility.

(8) "Telecommunications utility" has the meaning assigned by

Section 51.002.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.003. CUSTOMER AWARENESS. (a) The commission shall

promote public awareness of changes in the electric and

telecommunications markets, provide customers with information

necessary to make informed choices about available options, and

ensure that customers have an adequate understanding of their

rights.

(b) The commission shall compile a report on customer service at

least once each year showing the comparative customer information

from reports given to the commission it deems necessary.

(c) The commission shall adopt and enforce rules to require a

certificated telecommunications utility, a retail electric

provider, or an electric utility to give clear, uniform, and

understandable information to customers about rates, terms,

services, customer rights, and other necessary information as

determined by the commission. The rules must include a list of

defined terms common to the telecommunications and electricity

industries and require that applicable terms be labeled uniformly

on each retail bill sent to a customer by a certificated

telecommunications utility, retail electric provider, or electric

utility to facilitate consumer understanding of relevant billing

elements.

(d) Customer awareness efforts by the commission shall be

conducted in English and Spanish and any other language as

necessary.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

648, Sec. 1, eff. September 1, 2009.

Sec. 17.004. CUSTOMER PROTECTION STANDARDS. (a) All buyers of

telecommunications and retail electric services are entitled to:

(1) protection from fraudulent, unfair, misleading, deceptive,

or anticompetitive practices, including protection from being

billed for services that were not authorized or provided;

(2) choice of a telecommunications service provider, a retail

electric provider, or an electric utility, where that choice is

permitted by law, and to have that choice honored;

(3) information in English and Spanish and any other language as

the commission deems necessary concerning rates, key terms and

conditions, and the basis for any claim of environmental benefits

of certain production facilities;

(4) protection from discrimination on the basis of race, color,

sex, nationality, religion, marital status, income level, or

source of income and from unreasonable discrimination on the

basis of geographic location;

(5) impartial and prompt resolution of disputes with a

certificated telecommunications utility, a retail electric

provider, or an electric utility and disputes with a

telecommunications service provider related to unauthorized

charges and switching of service;

(6) privacy of customer consumption and credit information;

(7) accuracy of metering and billing;

(8) bills presented in a clear, readable format and

easy-to-understand language that uses defined terms as required

by commission rules adopted under Section 17.003;

(9) information in English and Spanish and any other language as

the commission deems necessary concerning low-income assistance

programs and deferred payment plans;

(10) all consumer protections and disclosures established by the

Fair Credit Reporting Act (15 U.S.C. Section 1681 et seq.) and

the Truth in Lending Act (15 U.S.C. Section 1601 et seq.); and

(11) after retail competition begins as authorized by the

legislature, programs provided by retail electric providers that

offer eligible low-income customers energy efficiency programs,

an affordable rate package, and bill payment assistance programs

designed to reduce uncollectible accounts.

(b) The commission may adopt and enforce rules as necessary or

appropriate to carry out this section, including rules for

minimum service standards for a certificated telecommunications

utility, a retail electric provider, or an electric utility

relating to customer deposits and the extension of credit,

switching fees, levelized billing programs, and termination of

service and to energy efficiency programs, an affordable rate

package, and bill payment assistance programs for low-income

customers. The commission may waive language requirements for

good cause.

(c) The commission shall request the comments of the office of

the attorney general in developing the rules that may be

necessary or appropriate to carry out this section.

(d) The commission shall coordinate its enforcement efforts

regarding the prosecution of fraudulent, misleading, deceptive,

and anticompetitive business practices with the office of the

attorney general in order to ensure consistent treatment of

specific alleged violations.

(e) Nothing in this section shall be construed to abridge

customer rights set forth in commission rules or to abridge the

rights of low-income customers to receive benefits through

pending or operating programs in effect at the time of the

enactment of this chapter.

(f) The commission shall adopt rules to provide automatic

enrollment of eligible utility customers for lifeline telephone

service and reduced electric rates available to low-income

households. Each state agency, on the request of the commission,

shall assist in the adoption and implementation of those rules.

(g) Notwithstanding any other provision of this title, the rules

adopted under Subsection (b) shall provide full, concurrent

reimbursement for the costs of any programs provided under

Subsection (a)(11) and for reimbursement for the difference

between any affordable rate package provided under Subsection

(a)(11) and any rates otherwise applicable.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

648, Sec. 2, eff. September 1, 2009.

Sec. 17.005. PROTECTIONS FOR CUSTOMERS OF MUNICIPALLY OWNED

UTILITIES. A municipally owned utility may not be deemed to be a

"service provider" or "billing agent" for purposes of Sections

17.156(b) and (e). The governing body of a municipally owned

utility shall adopt, implement, and enforce rules that shall have

the effect of accomplishing the objectives set out in Sections

17.004(a) and (b) and 17.102, as to the municipally owned utility

within its certificated service area. The governing body of a

municipally owned utility or its designee shall perform the

dispute resolution function provided for by Section 17.157 for

disputes arising from services provided by the municipally owned

utility to electric customers served within the municipally owned

utility's certificated service area. With respect to electric

customers served by a municipally owned utility outside its

certificated service area or otherwise served through others'

distribution facilities, after retail competition begins as

authorized by the legislature, the provisions of this chapter as

administered by the commission apply. Nothing in this chapter

shall be deemed to apply to a wholesale customer of a municipally

owned utility.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.006. PROTECTIONS FOR CUSTOMERS OF ELECTRIC COOPERATIVES.

An electric cooperative shall not be deemed to be a "service

provider" or "billing agent" for purposes of Sections 17.156(b)

and (e). The electric cooperative shall adopt, implement, and

enforce rules that shall have the effect of accomplishing the

objectives set out in Sections 17.004(a) and (b) and 17.102. The

board of directors of the electric cooperative or its designee

shall perform the dispute resolution function provided for by

Section 17.157 for electric customers served by the electric

cooperative within its certificated service area. With respect to

electric customers served by an electric cooperative outside its

certificated service area or otherwise served through others'

distribution facilities, after the legislature authorizes retail

competition, the provisions of this chapter as administered by

the commission shall apply. Nothing in this chapter shall be

deemed to apply to a wholesale customer of an electric

cooperative.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.007. ELIGIBILITY PROCESS FOR CUSTOMER SERVICE DISCOUNTS.

The commission by rule shall provide for an integrated

eligibility process for customer service discounts, including

discounts under Sections 39.903 and 55.015.

Added by Acts 2001, 77th Leg., ch. 1451, Sec. 1, eff. Sept. 1,

2001.

Sec. 17.008. PROTECTION OF RESIDENTIAL ELECTRIC SERVICE

APPLICANTS AND CUSTOMERS. (a) In this section and in Section

17.009:

(1) "Credit history":

(A) means information regarding an individual's past history of:

(i) financial responsibility;

(ii) payment habits; or

(iii) creditworthiness; and

(B) does not include an individual's outstanding balance for

retail electric or telecommunications service.

(2) "Credit score" means a score, grade, or value that is

derived by a consumer reporting agency, as defined under Section

603(f) of the Fair Credit Reporting Act (15 U.S.C. Section

1681a(f)), using data from a credit history in any type of model,

method, or program for the purpose of grading or ranking credit

report data, whether derived electronically, from an algorithm,

through a computer software application model or program, or

through any other analogous process.

(3) "Utility payment data" means a measure that is derived by a

consumer reporting agency, as defined under Section 603(f) of the

Fair Credit Reporting Act (15 U.S.C. Section 1681a(f)), from a

model specifically designed to correlate to utility payment

histories.

(b) A retail electric provider may not deny an applicant's

request to become a residential electric service customer on the

basis of the applicant's credit history or credit score, but may

use the applicant's utility payment data until the later of

January 1, 2007, or the date on which the price to beat is no

longer in effect in the geographic area in which the customer is

located.

(c) Notwithstanding Subsection (b), while a retail electric

provider is required to provide service to a geographic area as

the affiliated retail electric provider, the provider may not

deny an applicant's request to become a residential electric

service customer within that geographic area on the basis of the

applicant's credit history, credit score, or utility payment

data.

(d) After the date described in Subsection (b), a retail

electric provider, including an affiliated retail electric

provider, may not deny an applicant's request to become a

residential electric service customer on the basis of the

applicant's credit history, credit score, or utility payment data

but may use the applicant's electric bill payment history.

(e) A retail electric provider may not use a credit score, a

credit history, or utility payment data as the basis for

determining the price for month-to-month electric service or

electric service that includes a fixed price commitment of 12

months or less:

(1) for an existing residential customer; or

(2) in response to an applicant's request to become a

residential electric service customer.

(f) After the date described in Subsection (b), on request by a

customer or former customer in this state, a retail electric

provider or electric utility shall timely provide to the customer

or former customer bill payment history information with the

retail electric provider or electric utility during the preceding

12-month period. Bill payment history information may be obtained

by the customer or former customer once during each 12-month

period without charge. If additional copies of bill payment

history information are requested during a 12-month period, the

electric service provider may charge the customer or former

customer a reasonable fee for each copy.

(g) On request by a retail electric provider, another retail

electric provider or electric utility shall timely verify

information that purports to show a customer's service and bill

payment history with the retail electric provider or electric

utility.

(h) This section does not limit a retail electric provider's

authority to require a deposit or advance payment as a condition

of service.

(i) Notwithstanding Subsection (e), a retail electric provider

may provide rewards, benefits, or credits to residential electric

service customers on the basis of the customer's payment history

for retail electric service to that provider.

Added by Acts 2005, 79th Leg., Ch.

926, Sec. 1, eff. September 1, 2005.

Sec. 17.009. PROTECTION OF RESIDENTIAL TELEPHONE SERVICE

APPLICANTS AND CUSTOMERS. (a) A provider of basic local

telecommunications services and nonbasic network services may not

deny an applicant's request to become a residential customer on

the basis of the applicant's credit history or credit score.

(b) A provider of basic local telecommunications services and

nonbasic network services may not use a credit score or credit

history as the basis for determining price for service:

(1) for an existing residential customer; or

(2) in response to an applicant's request to become a

residential customer.

(c) This section does not limit the authority of a provider of

basic local telecommunications services and nonbasic network

services to require a deposit, advance payment, or credit limit

as a condition of service.

Added by Acts 2005, 79th Leg., Ch.

926, Sec. 1, eff. September 1, 2005.

SUBCHAPTER B. CERTIFICATION, REGISTRATION, AND REPORTING

REQUIREMENTS

Sec. 17.051. ADOPTION OF RULES. (a) The commission shall adopt

rules relating to certification, registration, and reporting

requirements for a certificated telecommunications utility, a

retail electric provider, or an electric utility, as well as all

telecommunications utilities that are not dominant carriers, pay

telephone providers, qualifying facilities that are selling

capacity into the wholesale or retail market, exempt wholesale

generators, and power marketers.

(b) The rules adopted under Subsections (a) and (c) shall be

consistent with and no less effective than federal law and may

not require the disclosure of highly sensitive competitive or

trade secret information.

(c) The commission shall adopt rules governing the local

registration of retail electric providers under Section 39.358.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999. Amended by Acts 2003, 78th Leg., ch. 48, Sec. 1, eff. Sept.

1, 2003.

Sec. 17.052. SCOPE OF RULES. The commission may adopt and

enforce rules to:

(1) require certification or registration with the commission as

a condition of doing business in this state, except that this

requirement does not apply to municipally owned utilities;

(2) amend certificates or registrations to reflect changed

ownership and control;

(3) establish rules for customer service and protection;

(4) suspend or revoke certificates or registrations for repeated

violations of this chapter or commission rules, except that the

commission may not revoke a certificate of convenience and

necessity of an electric utility except as provided by Section

37.059 or a certificate of convenience and necessity of a

telecommunications utility except as provided by Section 54.008;

and

(5) order disconnection of a pay telephone service provider's

pay telephones or revocation of certification or registration for

repeated violations of this chapter or commission rules.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.053. REPORTS. The commission may require a

telecommunications service provider, a retail electric provider,

or an electric utility to submit reports to the commission

concerning any matter over which it has authority under this

chapter.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE

Sec. 17.101. POLICY. It is the policy of this state that all

customers be protected from the unauthorized switching of a

telecommunications service provider, a retail electric provider,

or an electric utility selected by the customer to provide

service, where choice is permitted by law.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.102. RULES RELATING TO CHOICE. The commission shall

adopt and enforce rules that:

(1) ensure that customers are protected from deceptive practices

employed in obtaining authorizations of service and in the

verification of change orders, including negative option

marketing, sweepstakes, and contests that cause customers to

unknowingly change their telecommunications service provider,

retail electric provider, or electric utility, where choice is

permitted by law;

(2) provide for clear, easily understandable identification, in

each bill sent to a customer, of all telecommunications service

providers, retail electric providers, or electric utilities

submitting charges on the bill;

(3) ensure that every service provider submitting charges on the

bill is clearly and easily identified on the bill along with its

services, products, and charges, using defined terms as required

by commission rules adopted under Section 17.003;

(4) provide that unauthorized changes in service be remedied at

no cost to the customer within a period established by the

commission;

(5) require refunds or credits to the customer in the event of

an unauthorized change; and

(6) provide for penalties for violations of commission rules

adopted under this section, including fines and revocation of

certificates or registrations, by this action denying the

certificated telecommunications utility, the retail electric

provider, or the electric utility the right to provide service in

this state, except that the commission may not revoke a

certificate of convenience and necessity of an electric utility

except as provided by Section 37.059 or a certificate of

convenience and necessity of a telecommunications utility except

as provided by Section 54.008.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

648, Sec. 3, eff. September 1, 2009.

SUBCHAPTER D. PROTECTION AGAINST UNAUTHORIZED CHARGES

Sec. 17.151. REQUIREMENTS FOR SUBMITTING CHARGES. (a) A

service provider, retail electric provider, or billing agent may

submit charges for a new product or service to be billed on a

customer's telephone or retail electric bill on or after the

effective date of this section only if:

(1) the service provider offering the product or service has

thoroughly informed the customer of the product or service being

offered, including all associated charges, and has explicitly

informed the customer that the associated charges for the product

or service will appear on the customer's telephone or electric

bill;

(2) the customer has clearly and explicitly consented to obtain

the product or service offered and to have the associated charges

appear on the customer's telephone or electric bill and the

consent has been verified as provided by Subsection (b);

(3) the service provider offering the product or service and any

billing agent for the service provider:

(A) has provided the customer with a toll-free telephone number

the customer may call and an address to which the customer may

write to resolve any billing dispute and to answer questions; and

(B) has contracted with the billing utility to bill for products

and services on the billing utility's bill as provided by

Subsection (c); and

(4) the service provider, retail electric provider, or billing

agent uses defined terms on the bill as required by commission

rules adopted under Section 17.003.

(b) The customer consent required by Subsection (a)(2) must be

verified by the service provider offering the product or service

by authorization from the customer. A record of the customer

consent, including verification, must be maintained by the

service provider offering the product or service for a period of

at least 24 months immediately after the consent and verification

have been obtained. The method of obtaining customer consent and

verification must include one or more of the following:

(1) written authorization from the customer;

(2) toll-free electronic authorization placed from the telephone

number that is the subject of the product or service;

(3) oral authorization obtained by an independent third party;

or

(4) any other method of authorization approved by the commission

or the Federal Communications Commission.

(c) The contract required by Subsection (a)(3)(B) must include

the service provider's name, business address, and business

telephone number and shall be maintained by the billing utility

for as long as the billing for the products and services

continues and for the 24 months immediately following the

permanent discontinuation of the billing.

(d) A service provider offering a product or service to be

charged on a customer's telephone or electric bill and any

billing agent for the service provider may not use any

fraudulent, unfair, misleading, deceptive, or anticompetitive

marketing practice to obtain customers, including the use of

negative option marketing, sweepstakes, and contests.

(e) Unless verification is required by federal law or rules

implementing federal law, Subsection (b) does not apply to

customer-initiated transactions with a certificated

telecommunications provider or an electric utility for which the

service provider has the appropriate documentation.

(f) If a service provider is notified by a billing utility that

a customer has reported to the billing utility that a charge made

by the service provider is unauthorized, the service provider

shall cease to charge the customer for the unauthorized product

or service.

(g) This section does not apply to message telecommunications

services charges that are initiated by dialing 1+, 0+, 0-,

1010XXX, or collect calls and charges for video services if the

service provider has the necessary call detail record to

establish the billing for the call or service.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

648, Sec. 4, eff. September 1, 2009.

Sec. 17.152. RESPONSIBILITIES OF BILLING UTILITY. (a) If a

customer's telephone or retail electric bill is charged for any

product or service without proper customer consent or

verification, the billing utility, on its knowledge or

notification of any unauthorized charge, shall promptly, not

later than 45 days after the date of knowledge or notification of

the charge:

(1) notify the service provider to cease charging the customer

for the unauthorized product or service;

(2) remove any unauthorized charge from the customer's bill;

(3) refund or credit to the customer all money that has been

paid by the customer for any unauthorized charge, and if the

unauthorized charge is not adjusted within three billing cycles,

shall pay interest on the amount of the unauthorized charge;

(4) on the customer's request, provide the customer with all

billing records under its control related to any unauthorized

charge within 15 business days after the date of the removal of

the unauthorized charge from the customer's bill; and

(5) maintain for at least 24 months a record of every customer

who has experienced any unauthorized charge for a product or

service on the customer's telephone or electric bill and who has

notified the billing utility of the unauthorized charge.

(b) A record required by Subsection (a)(5) shall contain for

each unauthorized charge:

(1) the name of the service provider that offered the product or

service;

(2) any affected telephone numbers or addresses;

(3) the date the customer requested that the billing utility

remove the unauthorized charge;

(4) the date the unauthorized charge was removed from the

customer's telephone or electric bill; and

(5) the date any money that the customer paid for the

unauthorized charges was refunded or credited to the customer.

(c) A billing utility may not:

(1) disconnect or terminate telecommunications or electric

service to any customer for nonpayment of an unauthorized charge;

or

(2) file an unfavorable credit report against a customer who has

not paid charges the customer has alleged were unauthorized

unless the dispute regarding the unauthorized charge is

ultimately resolved against the customer, except that the

customer shall remain obligated to pay any charges that are not

in dispute, and this subsection does not apply to those

undisputed charges.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.153. RECORDS OF DISPUTED CHARGES. (a) Every service

provider shall maintain a record of every disputed charge for a

product or service placed on a customer's bill.

(b) The record required under Subsection (a) shall contain for

every disputed charge:

(1) any affected telephone numbers or addresses;

(2) the date the customer requested that the billing utility

remove the unauthorized charge;

(3) the date the unauthorized charge was removed from the

customer's telephone or retail electric bill; and

(4) the date action was taken to refund or credit to the

customer any money that the customer paid for the unauthorized

charges.

(c) The record required by Subsection (a) shall be maintained

for at least 24 months following the completion of all steps

required by Section 17.152(a).

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.154. NOTICE. (a) A billing utility shall provide

notice of a customer's rights under this section in the manner

prescribed by the commission.

(b) Notice of a customer's rights must be provided by mail to

each residential and retail business customer within 60 days of

the effective date of this section or by inclusion in the

publication of the telephone directory next following the

effective date of this section. In addition, each billing utility

shall send the notice to new customers at the time service is

initiated or to any customer at that customer's request.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.155. PROVIDING COPY OF RECORDS. A billing utility shall

provide a copy of records maintained under Sections 17.151(c),

17.152, and 17.154 to the commission staff on request. A service

provider shall provide a copy of records maintained under

Sections 17.151(b) and 17.153 to the commission on request.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.156. VIOLATIONS. (a) If the commission finds that a

billing utility violated this subchapter, the commission may

implement penalties and other enforcement actions under Chapter

15.

(b) If the commission finds that any other service provider or

billing agent subject to this subchapter has violated this

subchapter or has knowingly provided false information to the

commission on matters subject to this subchapter, the commission

may enforce the provisions of Chapter 15 against the service

provider or billing agent as if it were regulated by the

commission.

(c) Neither the authority granted under this section nor any

other provision of this subchapter shall be construed to grant

the commission jurisdiction to regulate service providers or

billing agents who are not otherwise subject to commission

regulation, other than as specifically provided by this chapter.

(d) If the commission finds that a billing utility or service

provider repeatedly violates this subchapter, the commission may,

if the action is consistent with the public interest, suspend,

restrict, or revoke the registration or certificate of the

telecommunications service provider, retail electric provider, or

electric utility, by this action denying the telecommunications

service provider, retail electric provider, or electric utility

the right to provide service in this state, except that the

commission may not revoke a certificate of convenience and

necessity of an electric utility except as provided by Section

37.059 or a certificate of convenience and necessity of a

telecommunications utility except as provided by Section 54.008.

(e) If the commission finds that a service provider or billing

agent has repeatedly violated any provision of this subchapter,

the commission may order the billing utility to terminate billing

and collection services for that service provider or billing

agent.

(f) Nothing in this subchapter shall be construed to preclude a

billing utility from taking action on its own to terminate or

restrict its billing and collection services.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.157. DISPUTES. (a) The commission may resolve disputes

between a retail customer and a billing utility, service

provider, telecommunications utility, retail electric provider,

or electric utility.

(b) In exercising its authority under Subsection (a), the

commission may:

(1) order a billing utility, service provider, retail electric

provider, or electric utility to produce information or records;

(2) require that all contracts, bills, and other communications

from a billing utility, service provider, retail electric

provider, or electric utility display a working toll-free

telephone number that customers may call with complaints and

inquiries;

(3) require a billing utility, service provider, retail electric

provider, or electric utility to refund or credit overcharges or

unauthorized charges with interest if the billing utility,

service provider, retail electric provider, or electric utility

has failed to comply with commission rules or a contract with the

customer;

(4) order appropriate relief to ensure that a customer's choice

of a telecommunications service provider, a retail electric

provider, or an electric utility that encompasses a geographic

area in which more than one provider has been certificated is

honored;

(5) require the continuation of service to a residential or

small commercial customer while a dispute is pending regarding

charges the customer has alleged were unauthorized; and

(6) investigate an alleged violation.

(c) The commission shall adopt procedures for the resolution of

disputes in a timely manner, which in no event shall exceed 60

days.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.

Sec. 17.158. CONSISTENCY WITH FEDERAL LAW. Rules adopted by the

commission under this subchapter shall be consistent with and not

more burdensome than applicable federal laws and rules.

Added by Acts 1999, 76th Leg., ch. 1579, Sec. 3, eff. Aug. 30,

1999.