| (A) The REP shall allow the guarantor 16 days from
the date of notification to pay the amount owed on the defaulted account.
If the sixteenth day falls on a holiday or weekend, the due date shall
be the next business day.
(B) The REP may transfer the amount owed on the defaulted
account to the guarantor's own electric service bill provided the
guaranteed amount owed is identified separately on the bill as required
by §25.479 of this title (relating to Issuance and Format of
(6) The REP may initiate disconnection for nonpayment
of the guaranteed amount only if the disconnection of service was
disclosed in the written guarantee agreement, and only after proper
notice as described by paragraph (5) of this subsection or §25.483
of this title.
(j) Refunding deposits and voiding letters of guarantee.
(1) A deposit held by a REP shall be refunded when
the customer has paid bills for service for 12 consecutive residential
billings or for 24 consecutive non-residential billings without having
any late payments. A REP may refund the deposit to a customer via
a bill credit. REPs shall comply with this provision as soon as practicable,
but no later than August 31, 2004.
(2) Once the REP is no longer the REP of record for
a customer or if service is not established with the REP, the REP
shall either transfer the deposit plus accrued interest to the customer's
new REP or promptly refund the deposit plus accrued interest to the
customer, as agreed upon by the customer and both REPs. The REP may
subtract from the amount refunded any amounts still owed by the customer
to the REP. If the REP obtained a guarantee, such guarantee shall
be cancelled to the extent that it is not needed to satisfy any outstanding
balance owed by the customer. Alternatively, the REP may provide the
guarantor with written documentation that the contract has been cancelled
to the extent that the guarantee is not needed to satisfy any outstanding
balance owed by the customer.
(3) If a customer's or applicant's service is not connected,
or is disconnected, or the service is terminated by the customer,
the REP shall promptly void and return to the guarantor all letters
of guarantee on the account or provide written documentation that
the guarantee agreement has been voided, or refund the customer's
or applicant's deposit plus accrued interest on the balance, if any,
in excess of the unpaid bills for service furnished. Similarly, if
the guarantor's service is not connected, or is disconnected, or the
service is terminated by the customer, the REP shall promptly void
and return to the guarantor all letters of guarantee or provide written
documentation that the guarantees have been voided. This provision
does not apply when the customer or guarantor moves or changes the
address where service is provided, as long as the customer or guarantor
remains a customer of the REP.
(4) A REP shall terminate a guarantee agreement when
the customer has paid its bills for 12 consecutive months without
service being disconnected for nonpayment and without having more
than two delinquent payments.
(k) Re-establishment of credit. A customer or applicant
who previously has been a customer of the REP and whose service has
been terminated or disconnected for nonpayment of bills or theft of
service by that customer (meter tampering or bypassing of meter) may
be required, before service is reinstated, to pay all amounts due
to the REP or execute a deferred payment agreement, if offered, and
(l) Upon sale or transfer of company. Upon the sale
or transfer of a REP or the designation of an alternative POLR for
the customer's electric service, the seller or transferee shall provide
the legal successor to the original provider all deposit records.
|Source Note: The provisions of this §25.478 adopted to be effective January 15, 2001, 26 TexReg 125; amended to be effective September 12, 2002, 27 TexReg 8428; amended to be effective June 1, 2004, 29 TexReg 4756; amended to be effective April 25, 2005, 30 TexReg 2386; amended to be effective March 23, 2006, 31 TexReg 2143; amended to be effective July 2, 2006, 31 TexReg 5279; amended to be effective March 8, 2007, 32 TexReg 1286; amended to be effective August 19, 2012, 37 TexReg 6006; amended to be effective March 10, 2016, 41 TexReg 1681; amended to be effective May 13, 2018, 43TexReg 3001