Proposed PUC Rules Draw Fire

Unfair and anticompetitive. That’s how some members of the public and consumer advocates have characterized proposed rules that would keep Texans from getting electric service if they owe an outstanding balance to a previous electric provider.

These complaints and others were aired during a May 17th public hearing in Austin regarding proposed changes to the Public Utility Commission’s rules for electricity service disconnections. The changes would modify eligibility requirements for deferred payment plans and other low-income customer protections. They also modify the disconnection notice requirements as they pertain to customers with life-threatening medical conditions. Finally, the proposed rules contain the controversial switch-hold provisions intended to keep customers from changing retail providers without first paying any balance they owe to their previous provider.

Various groups offered comments on the proposed rules. Some participants requested removal of language that would prevent customers with battery backups for medical devices from qualifying for special protection. Participants also said that seriously ill and disabled customers should never face disconnections. Participants overwhelmingly weighed in against the switch-hold portion of the proposed rules.

Various parties also filed written comments, which can be found here and here. Additional comments are due Friday, May 21.

-- Eileen McPhee

Electric Disconnection Rules Pending at PUC

On April 16, the Public Utility Commission proposed amendments to its electric service disconnection rules. The amendments would modify the eligibility requirements for deferred payment plans and other low-income customer protections. The amendments also modify the disconnection notice requirements as they pertain to customers with life-threatening medical conditions. Finally, the amendments contain a proposed switch-hold rule intended to prevent customers from changing retail providers without first paying any balance they owe to their previous provider.

The proposed amendments, drafted by Commission staff, are part of an ongoing effort by the agency to clarify various billing issues that are important both to retail electric providers and consumers. The Commission is accepting public comments on the proposed amendments, although comments must be submitted by May 6. Interested parties can also submit replies to those comments by May 21. The agency’s three Commissioners are expected to adopt a final version of the rules sometime early this summer.

To read the proposed amendments, click here.

--Eileen McPhee

Regulatory experts needed for Afghanistan, Iraq

Never thought your knowledge of tariff methodologies and docketing systems would lead to exciting adventure? Think again.

In an email blast to American utility officials and consultants, the National Association of Regulatory Commissioners signals that the war-torn countries of Afghanistan and Iraq need help establishing electric regulatory agencies. Explains Erin Skootsky, director of NARUC's international programs: "Afghanistan is planning to create a regulatory agency, pending passage of legislation (and) Iraq plans to create a Department of Regulation at the Ministry of Electricity following passage of an electricity regulatory law.”

Skootsky notes that her organization “has been approached” about potentially assisting with in-country technical training programs and workshops. She said the training would be short-term — one week for NARUC member volunteers and 1-3 weeks for consultants — and focused on the foundations of regulation, management of a regulatory agency, tariff methodologies, licensing issues, docketing systems and consumer protection. There’s no indication from Ms. Skootsky’s email about which government or organization, specifically, solicited NARUC’s assistance.

Other details? According to preliminary security information cited by Ms. Skootsky, participants would be lodged at United States government facilities or guest houses and not in independent hotels. "Project security would inspect all locations prior to meetings and provide local ground transportation," writes Ms. Skootsky, adding that "country clearance and other security arrangements will be quite extensive."

For those interested, replies should be sent to Ms. Skootsky by April 12, 2010. Her email address is eskootsky@naruc.org.

-- R.A. Dyer

Meter Tampering: A Thorny Issue

The Public Utility Commission is currently considering new rules relating to a very important and thorny issue: meter tampering. That is, on occasion a private individual may improperly disconnect, rewire or otherwise alter an electric meter in such a way as to reduce its usage measurements.

It's an important issue for electric companies because meter tampering can result in a loss of revenue. As such, some companies want the PUC to grant them wider discretion to backbill customers with tampered meters.

And with the advent of advanced meters, such backbilling has become a much easier proposition for utilities. But it's also true that a back-billed customer may have had nothing to do with the tampering — in fact, that customer may have moved onto the property after the tampering occurred, or the meter may have malfuctioned for unrelated reasons. That's why this issue is so thorny for home consumers.

A related issue involves so-called “switch-holds,” which would prohibit customers from changing retail electric providers until that customer has paid for charges relating to alleged meter tampering. Also, the Texas Apartment Association is seeking notification of meter tampering on rental properties. This presents privacy concerns for residents, especially residents who may have moved in after the tampering occured.

Comments from interested parties have been filed at the Commission, which will likely soon make a decision. You can read some of the comments here.

-- Eileen McPhee

EPA Greenhouse Gases Endangerment Finding

On December 7, 2009, EPA finalized its long-expected finding that greenhouse gases (“GHG”) endanger human health and cause and contribute to air pollution. Although the findings, issued in response to the U.S. Supreme Court’s decision in Massachusetts v. EPA (2007), do not in themselves create any regulation of GHGs, they are necessary for the EPA to begin regulating GHGs, and in fact, obligate the EPA to regulate them under the Clean Air Act.

The findings set the stage for regulations of GHG emissions from vehicles and stationary sources, for lawsuits challenging the findings, for lawsuits seeking to require EPA to regulate GHG emissions, and for lawsuits collaterally attacking permits that do not address GHG emissions whether issued by EPA or state agencies.

In response, U.S. Senator Lisa Murkowski of Alaska (that's her picture, above) has announced plans to introduce a resolution in Congress to disapprove the endangerment finding. If the resolution is approved by both the House and the Senate, and ultimately signed by the President, the EPA’s endangerment finding would be nullified and EPA would be unable to regulate GHGs. However, in the absence of legislation addressing GHGs it is considered unlikely that the President would sign the resolution.

A Tale of Two Cities: Houston and San Antonio

Here’s a bit more bad news about prices under the state’s flawed deregulated system. According to recent figures from the Public Utility Commission web site, residents in the state's largest city under deregulation (Houston) continue paying far more for electricity than residents living in the largest city outside deregulation (San Antonio).

Specifically, the PUC figures show that as of December 2009 (the latest data available) a home consumer in San Antonio would spend $77.38 for 1,000 KW/H of power. A consumer using the exact same amount of juice in Houston -- even a consumer with the very lowest rate available -- would spend $86, or more than 11.1 percent more. And, of course, most rates in Houston are far higher.

Likewise, a recent survey from a commercial website, Whitefence.com, lists Houston as having the second highest electricity prices among the cities it surveyed in the entire nation.

Many proponents of the flawed deregulated system continue making apples-to-oranges comparisons between lowest-cost offers under deregulation and average rates outside deregulation. But as these figures show, even those comparisons often don't hold water.

-- R.A. Dyer

Consumer workshop scheduled for Houston

May 15th – mark it on your calendar. That’s the date of a public workshop scheduled in Houston devoted specifically to consumer rights under the state’s electric deregulation law. Sponsored by state Rep. Sylvester Turner, the first annual “Consumer Rights Electricity Workshop” will provide a forum to discuss products, pricing, social services and cost-cutting measures. Turner’s office also promises discussions “on consumer rights, (on) how to effectively advocate for policy changes, and … of important electricity issues the state will face in the 2011 legislative session.”

When it comes to electricity issues, the 2011 session should be a contentious one. That’s because both the Public Utility Commission and the Electric Reliability Council of Texas, which operates the power grid, are now both under special legislative review. At the same time, residential electricity consumers continue to pay rates above the national average after enjoying a long history of below-average rates before deregulation.

Rep. Turner’s consumer workshop is tentatively scheduled for 9 a.m. to 3 p.m. at the CWA Union Hall in Houston. The address is 1730 Jefferson Street. For more information contact Cory Henrickson in Rep. Turner's office. His email address is cory.henrickson@house.state.tx.us.

-- R.A. Dyer