UTILITIES CODE
CHAPTER 17. CUSTOMER PROTECTION
SUBCHAPTER A. GENERAL PROVISIONS
§ 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, § 3, eff. Aug. 30, 1999.
§ 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, § 3, eff. Aug. 30, 1999.
§ 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.
(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, § 3, eff. Aug. 30, 1999.
§ 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;
(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, § 3, eff. Aug. 30, 1999.
§ 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, § 3, eff. Aug. 30, 1999.
§ 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, § 3, eff. Aug. 30, 1999.
§ 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, § 1, eff. Sept. 1, 2001.
SUBCHAPTER B. CERTIFICATION, REGISTRATION, AND REPORTING
REQUIREMENTS
§ 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, § 3, eff. Aug. 30, 1999.
Amended by Acts 2003, 78th Leg., ch. 48, § 1, eff. Sept. 1, 2003.
§ 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, § 3, eff. Aug. 30, 1999.
§ 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, § 3, eff. Aug. 30, 1999.
SUBCHAPTER C. CUSTOMER'S RIGHT TO CHOICE
§ 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, § 3, eff. Aug. 30, 1999.
§ 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;
(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, § 3, eff. Aug. 30, 1999.
SUBCHAPTER D. PROTECTION AGAINST UNAUTHORIZED CHARGES
§ 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); and
(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).
(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, § 3, eff. Aug. 30, 1999.
§ 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, § 3, eff. Aug. 30, 1999.
§ 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, § 3, eff. Aug. 30, 1999.
§ 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, § 3, eff. Aug. 30, 1999.
§ 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, § 3, eff. Aug. 30, 1999.
§ 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, § 3, eff. Aug. 30, 1999.
§ 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, § 3, eff. Aug. 30, 1999.
§ 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, § 3, eff. Aug. 30, 1999.
