Tip of the day…. A Way for Consumers to Ease High Summer Electricity Bills

PUC Substantive Electricity Rule 25.480 (h); Level and average payment plans. This rule states, "A REP shall offer a level or average payment plan to its customers who are not currently delinquent in payment to the REP." What does this mean?

Well, our office has been inundated with phone calls of citizens struggling with their higher than normal utility bills because of the sweltering Texas summer. High temperatures result in increased electricity usage and therefore higher bills in the summer months. We all know this and it occurs every summer, but what many of us don't know is about this rule which may allow consumer to avoid such financial crippling situations, especially those on FIXED INCOMES. So, I would like to take this blog opportunity to highlight the rule and inform consumers of this option.

The rule mandates that a retail electric provider must offer a customer an average or level billing plan if a customer so desires. The ONLY qualification one must meet is that they are current on their bills. If a company indicates otherwise, or is unwilling to meet the request of the customer the customer should IMMEDIATELY inform the utility company of their rights under the PUC Substantive Electricity Rule 25.480 (h) and ask again, if the company still refuses they should IMMEDIATELY contact the the PUC and lodge a complaint. It may be useful to also contact your State Representative and inform them as well.

A WARNING about this option is that the Utility has the right to (and they will) occasionally square up the bill. What this means is that anything used and not billed for will be billed and any over billing will be credited to the account. One negative impact of this could be, a bill which is higher than the others. What this also might mean is, if the company significantly miscalculates your average consumption, you could end up with a significantly large bill to square up the account. I assume they can get it pretty close, but you never know so beware!

Also many companies DO NOT INFORM you of this option or it is hidden in the terms of service agreement. Therefore you must ask them for it. And again, the only requirement is that you can not currently be delinquent! If the company implies otherwise, they are breaking the rules, so REPORT them!

One company, Champion Energy Services has this in their terms of service agreement…

35. Budget Billing Plan: Champion may offer a budget billing
plan for Buyers who are currently not delinquent and who have
not had more than two (2) delinquencies in the past twelve (12)
months. Variable payment amount is based upon prior usage
and may be adjusted for significant differences between actual
and billed usage.

This appears to me to be against PUC rules, because of the additional requirement (2), stating you must not have been delinquent in the past twelve months. While, I don't know what would happen if a customer of Champion Energy Services were to request a average bill plan and point out their rights under PUC Rules, I'm currently looking into this and similar situations with other companies.

Good luck consumers!