Texas Utilities Code 39.110 – Wholesale Indexed Products Prohibited
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(a) In this section, “wholesale indexed product” 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 § 39.151 for the ERCOT power region.
(b) An aggregator, a broker, or a retail electric provider may not offer a wholesale indexed product to a residential or small commercial customer.
Terms Used In Texas Utilities Code 39.110
- Contract: A legal written agreement that becomes binding when signed.
- Month: means a calendar month. See Texas Government Code 312.011
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005
(c) An aggregator, a broker, or a retail electric provider may enroll a customer other than a residential and small commercial customer in a wholesale indexed product only if the provider, aggregator, or broker obtains before the customer’s enrollment an acknowledgment signed by the customer that the customer accepts the potential price risks associated with a wholesale indexed product.
(d) An acknowledgment required by Subsection (c) 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.”
(e) An acknowledgment required by Subsection (c) may be included as an addendum to a contract.
(f) A retail electric provider that provides a wholesale indexed product to a customer must keep on file the acknowledgment required by Subsection (c) for each customer while the customer is enrolled with the retail electric provider in the wholesale indexed product.