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.