| (ii) the sum of the estimated billings for the next
two months.
(B) A REP may base the estimated annual billing for
initial deposits for applicants on a reasonable estimate of average
usage for the customer class. If a REP requests additional or initial
deposits from existing customers, the REP shall base the estimated
annual billing on the customer's actual historical usage, to the extent
that the historical usage is available. After 12 months of service
with a REP, a customer may request that a REP recalculate the required
deposit based on actual historical usage of the customer.
(2) For the purpose of determining the amount of the
deposit, the estimated billings shall include only charges for electric
service that are disclosed in the REP's terms of service document
provided to the customer or applicant.
(f) Interest on deposits. A REP that requires a deposit
pursuant to this section shall pay interest on that deposit at an
annual rate at least equal to that set by the commission on or before
December 1 of the preceding calendar year, pursuant to Texas Utilities
Code §183.003 (relating to Rate of Interest). If a deposit is
refunded within 30 days of the date of deposit, no interest payment
is required. If the REP keeps the deposit more than 30 days, payment
of interest shall be made from the date of deposit.
(1) Payment of the interest to the customer shall be
made annually, if requested by the customer, or at the time the deposit
is returned or credited to the customer's account.
(2) The deposit shall cease to draw interest on the
date it is returned or credited to the customer's account.
(g) Notification to customers. When a REP requires
a customer to pay a deposit, the REP shall provide the customer written
information about the provider's deposit policy, the customer's right
to post a guarantee in lieu of a cash deposit if applicable, how a
customer may be refunded a deposit, and the circumstances under which
a provider may increase a deposit. These disclosures shall be included
either in the Your Rights as a Customer disclosure or the REP's terms
of service document.
(h) Records of deposits.
(1) A REP that collects a deposit shall keep records
to show:
(A) the name and address of each depositor;
(B) the amount and date of the deposit; and
(C) each transaction concerning the deposit.
(2) A REP that collects a deposit shall issue a receipt
of deposit to each customer or applicant paying a deposit or reflect
the deposit on the customer's bill statement. A REP shall provide
means for a depositor to establish a claim if the receipt is lost.
(3) A REP shall maintain a record of each unclaimed
deposit for at least four years.
(4) A REP shall make a reasonable effort to return
unclaimed deposits.
(i) Guarantees of residential customer accounts. A
guarantee agreement in lieu of a cash deposit issued by any REP, if
applicable, shall conform to the following requirements:
(1) A guarantee agreement between a REP and a guarantor
shall be in writing and shall be for no more than the amount of deposit
the provider would require on the customer's account pursuant to subsection
(e) of this section. The amount of the guarantee shall be clearly
indicated in the signed agreement. The REP may require, as a condition
of the continuation of the guarantee agreement, that the guarantor
remain a customer of the REP, have no past due balance, and have no
more than one late payment in a 12-month period during the term of
the guarantee agreement.
(2) The guarantee shall be voided and returned to the
guarantor according to the provisions of subsection (j) of this section.
(3) Upon default by a residential customer, the guarantor
of that customer's account shall be responsible for the unpaid balance
of the account only up to the amount agreed to in the written agreement.
(4) If the guarantor ceases to be a customer of the
REP or has more than one late payment in a 12-month period during
the term of the guarantee agreement, the provider may treat the guarantee
agreement as in default and demand a cash deposit from the residential
customer as a condition of continuing service.
(5) The REP shall provide written notification to the
guarantor of the customer's default, the amount owed by the guarantor,
and the due date for the amount owed.
(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
Bills).
(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
reestablish credit.
(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 |
