| (a) Purpose. This section establishes requirements
for the offering of wholesale indexed products and products containing
separate assessment of ancillary services costs to a customer other
than a residential or small commercial customer.
(b) Application. This section applies to all retail
electric providers (REPs), aggregators and brokers. The Acknowledgement
of Risk (AOR) for wholesale indexed products required by this section
is effective for enrollments or re-enrollments entered into on or
after September 1, 2021. The AOR required for other product types
required under this section are effective for enrollments or re-enrollments
entered into on or after April 1, 2021. REPs are not required to modify
contract documents related to contracts or enrollments entered into
before this date.
(c) Definitions. The definitions set forth in §25.5
(relating to Definitions) and §25.471(d) (relating to General
Provisions of Customer Protection Rules) of this title apply to this
section. In addition, wholesale indexed product, when used in this
section, means a retail electric product in which the price a customer
pays for electricity includes a direct pass-through of real-time settlement
point prices determined by the independent organization certified
under the Public Utility Regulatory Act (PURA) §39.151 for the
ERCOT power region.
(d) Acknowledgement of Risk (AOR). Before a customer
other than a residential or small commercial customer is enrolled
in a wholesale indexed product, or a product that contains a separate
assessment of ancillary service charges, an aggregator, broker, or
REP must obtain an AOR, signed by the customer, verifying that the
customer accepts the potential price risks associated with the product.
(1) For Wholesale Indexed Products, the AOR must include
the following statement in clear, boldfaced text: "I understand that
the volatility and fluctuation of wholesale energy pricing may cause
my energy bill to be multiple times higher in a month in which wholesale
energy prices are high. I understand that I will be responsible for
charges caused by fluctuations in wholesale energy prices."
(2) For products that contain a separate assessment
of ancillary service charges the AOR must include the following statement
in clear, boldfaced text: "I understand that my energy bill may include
a separate assessment of ancillary service charges, which may cause
my energy bill to be multiple times higher in a month in which ancillary
services charges are high. I understand that I will be responsible
for charges caused by fluctuations in ancillary service charges."
(3) An AOR may be included as an addendum to a contract.
(4) A REP, aggregator, or broker must retain a record
of the AORs for each customer during the time the applicable plan
is in effect and for four years after the contract ceases to be in
effect for any customer. A REP must provide such documents at the
request of the commission or its staff.
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