HBA-BSM H.B. 2806 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2806 By: Kitchen Energy Resources 3/23/2001 Introduced BACKGROUND AND PURPOSE The price of natural gas has skyrocketed in recent months. Gas utility customers in Texas received winter heating bills that were as much as four times higher than for the same period in the previous year. Many people, particularly those on fixed incomes, could not pay their gas bills in full. 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. Currently, the Gas Utility Regulatory Act does not cover these emergency conditions, and customers are liable to have their gas supply disconnected if the bill is not paid. House Bill 2806 prohibits a gas provider from disconnecting gas supply in specified adverse weather conditions 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 customer on a day when the previous day's temperature in the county in which the customer is located fell below 40 degrees Fahrenheit and the National Weather Service predicts that the temperature in that county will fall below that temperature during the next 24 hours. The bill also prohibits the disconnection of a natural gas service to a residential customer who did not pay the customer's bill when due: _if the provider receives for that billing period a pledge, letter of intent, purchase order, or other notification from an energy assistance provider that it is forwarding payment to continue the service; or _on a holiday, weekend, or other day on which personnel of the provider are not available to receive payment or make a collection and to reconnect service, or on a day preceding such a day. These provisions are not applicable if there is a known dangerous condition or use of natural gas service in a manner that is dangerous or unreasonably interferes with service to others. The bill provides that at a minimum the provider is required to offer a deferred payment plan to a residential customer who is not able to make complete payment of a bill when due, and a level or average payment plan to all customers. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.