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TITLE 16ECONOMIC REGULATION
PART 2PUBLIC UTILITY COMMISSION OF TEXAS
CHAPTER 25SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
SUBCHAPTER BCUSTOMER SERVICE AND PROTECTION
RULE §25.27Retail Electric Service Switchovers

(a) Right to switchover.

  (1) General principles. A consumer has the right to switch retail electric service to any electric or municipally owned utility that has the right to provide service in the area in which the consumer's consuming facility is located, subject to the terms of any contract for electric service entered into pursuant to the disconnecting utility's tariff. Because a consuming facility for which a switchover is sought can obtain electric service from the disconnecting utility prior to the switchover, an electric or municipally owned utility shall give a switchover a lower priority than the elimination of outages and requests for service to consuming facilities that do not have service. Nevertheless, a switchover shall be performed as soon as reasonably possible, and the disconnecting and connecting utilities shall strive to take the actions required below more quickly than the deadlines listed below. In addition, the disconnecting and connecting utilities shall minimize any outages related to making a switchover.

  (2) Options and availability. This section provides two switchover options: partial switchover and full switchover. All subsections of this section apply to electric utilities, while only subsections (a), (c), (e), and (g) of this section apply to municipally owned utilities. The partial switchover option is not available in a particular area prior to September 1, 1999 and prior to such time as both the disconnecting and connecting utilities have approved tariffs for transmission service at the transmission and primary and secondary distribution voltage levels. Until the utilities have such approved tariffs, subsections (d) and (e) of this section do not apply. In addition, the partial switchover option is not available to the extent that it would reduce the state's jurisdiction over a utility. The provisions for full switchovers in this section become effective for a particular area once the electric utilities that have a right to provide service in the area have tariffs in effect that are consistent with this section.

  (3) Limitations and refunds. A consuming facility may not be switched more than once every 12 months. A consumer or connecting utility who pays a switchover fee does not waive the right to seek a refund on the basis that the switchover fee was excessive. In addition, a connecting utility or consumer who buys facilities pursuant to this section waives the right to seek a refund only if it expressly agrees to waive that right.

(b) Definitions. As used in this section, the following terms have the following meanings.

  (1) Idle facilities--The disconnecting utility's facilities that are used to serve only the consuming facility being switched, as well as the easements for these facilities. For consuming facilities served above 480 volts, idle facilities also include costs, or a portion of costs, pertaining to the upgrade of transmission and distribution facilities that were necessary to serve the consuming facility, if the current or prior owner of the consuming facility agreed to pay the costs upon switching. In all other respects, idle facilities do not include facilities that were installed or are being used to serve more than one consuming facility, including: facilities that were designed with a capacity greater than necessary to serve the consuming facility being switched in order that additional consuming facilities could be served using the facilities in the future; and upgrades that were made to common facilities in order to serve the consuming facility being switched.

  (2) Common facilities--The disconnecting utility's facilities that are used, installed, or designed to serve more than one consuming facility, except as specified in the definition of idle facilities.

(c) Documentation. The requests, notices, offers, agreements, and switchover requests provided for in this section must be in writing, unless otherwise indicated.

(d) Notice of switchover options. Upon receiving an oral switchover request, the disconnecting utility shall at that time orally describe the two switchover options, including stating that there is no charge for a partial switchover, stating that there will be a switchover fee for a full switchover, stating that switchover requests must be in writing, stating that written general information on switchover fees will be provided within two working days, and providing a fax number and mailing address to send the switchover request. Within two working days of a switchover request that does not specify whether a partial or full switchover is being requested, the disconnecting utility shall provide the consumer a document describing the two switchover options, including a statement that there is no charge for a partial switchover, specifying for a full switchover the base charge and base charge adder and stating that the facilities recovery charge will vary depending on the circumstances, and providing the deadlines prescribed in subsection (f)(2)(C) of this subsection for the disconnecting utility to notify the connecting utility after payment of the switchover fee that the full switchover can proceed.

(e) Partial switchover.

  (1) Description. Under the partial switchover option, the connecting utility provides power to the consuming facility using the disconnecting utility's transmission and/or distribution facilities. The disconnecting utility shall provide the connecting utility transmission service to the same point of delivery that the disconnecting utility provided electricity to the consuming facility prior to the switchover. Except where necessary or where the connecting utility requests it, all of the disconnecting utility's facilities needed to serve the consuming facility prior to the switchover shall remain in place. The disconnecting utility may not charge a switchover fee for a partial switchover, except that it may charge the connecting utility a cost-based fee where the connecting utility requests that the disconnecting utility remove facilities that were needed by the disconnecting utility to serve the consuming facility prior to the switchover. In addition, the disconnecting utility may charge a switching customer any account closing fee that applies to all departing customers, not just switching customers.

  (2) Procedure for partial switchover. The disconnecting utility shall contact the connecting utility within three working days of receiving a request for a partial switchover in order to coordinate the switchover. The switchover shall occur within eight working days of the disconnecting utility's receipt of the request, unless the consumer agrees to a longer schedule or unless good cause exists for not completing the switchover within eight working days. If the switchover will not be completed within eight working days, then the disconnecting utility must notify the consumer, with copies to the commission's Office of Customer Protection and to the connecting utility, providing the reasons why the switchover has been delayed and when the switchover will be completed. This notice must be provided as soon as possible, by fax to the commission's Office of Customer Protection, connecting utility, and, if possible, the consumer.

(f) Full switchover. A full switchover involves the disconnecting utility disconnecting its facilities and the connecting utility installing and/or purchasing transmission and/or distribution facilities to serve the consuming facility. If the consumer is a tenant, the consumer must obtain the clear and specific agreement of the owner or owner's agent to switch over the consuming facility and must provide it to the disconnecting utility as an attachment to a notarized affidavit stating that the consumer has obtained the owner's or owner's agent's agreement. This subsection does not apply within municipalities exercising original jurisdiction that enacted switchover rules by August 28, 1998 that provide for more expeditious full switchovers than provided by this subsection.

  (1) Switchover fee. The switchover fee applies regardless of whether the consumer requesting the switchover has ever received service from the disconnecting utility at the consuming facility. The fee consists of a base charge and, where applicable, a base charge adder and facilities recovery charge. The disconnecting utility may not include in the switchover fee a charge for general administrative expenses related to closing the consumer's account. However, the disconnecting utility shall charge a switching customer any account closing fee that applies to all departing customers, not just switching customers. Where the disconnecting utility is allowed to charge for the original cost of facilities, it must deduct contributions in aid of construction that apply to those facilities. Accumulated depreciation shall be calculated using the depreciation rates that are currently used to book depreciation. Upon the payment of the switchover fee or purchase, or refusal of an offer to purchase, under the circumstances described in subparagraph (B)(i) of this paragraph, any construction charges owed by the consumer, pursuant to a contract entered into after the effective date of this subsection, for idle facilities used to provide service to the consuming facility being switched are extinguished.

Cont'd...

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