HBA-BSM H.B. 2806 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2806 By: Kitchen Energy Resources 7/26/2001 Enrolled BACKGROUND AND PURPOSE The price of natural gas has recently skyrocketed. Gas utility customers in Texas received winter heating bills during the 2000-2001 season that were as much as four times higher than for the same period in the previous year. Many people, could not pay their gas bills in full particularly those on fixed incomes. Consumer organizations petitioned the Railroad Commission of Texas to adopt an emergency rule to prevent disconnections for nonpayment during cold weather. When gas prices are high, customers may restrict their consumption of natural gas for residential heating to levels that could be detrimental to their well being, especially during times of adverse weather conditions. Prior to the 77th Legislature, the Gas Utility Regulatory Act did not cover these emergency conditions, and customers were liable to have their gas supply disconnected if the bill was not paid. House Bill 2806 prohibits a gas provider from disconnecting gas supply to a residential customer in specified adverse weather conditions or on a weekend day unless personnel of the provider are available on that day to take payment or reconnect service, and sets forth provisions for payment plans. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 2806 amends the Utilities Code to prohibit a gas provider from disconnecting a natural gas service to a residential customer on a weekend day unless personnel of the provider are available on that day to take payments and reconnect service, or during an extreme weather emergency during which the previous day's highest temperature did not exceed 32 degrees Fahrenheit and the temperature is predicted to remain at or below that level for the next 24 hours according to the nearest National Weather Service reports. The bill requires providers to defer collection of the full payment of bills that are due during an extreme weather emergency until after the emergency is over and work with customers to establish a pay schedule for deferred bills. EFFECTIVE DATE September 1, 2001.