Although an important bill assistance program has ended, low-income ratepayers should continue to access other important protections thanks to legislation now pending in Austin.
Sponsored by state Sen. John Whitmire and Rep. Chris Paddie — and supported by the Texas Coalition for Affordable Power — Senate Bill 1976 is intended to provide a continued leg up for electric and telecommunications customers of limited means. The bill cleared some of the last important legislative hurdles this week.
In specific terms, SB 1976 calls upon the Health and Human Services Commission to continue working with the Public Utility Commission to identify eligible low-income ratepayers. With this assistance, the PUC can then ensure those ratepayers get help paying late fees and can access other important protections.
The legislation became important after the depletion in 2016 of the System Benefit Fund, which for years financed electric bill discounts for the poorest Texans. To identify those eligible customers, the PUC accessed data provided by the HHSC.
But with the depletion of the System Benefit Fund, questions arose as to whether the PUC could continue accessing the HHSC data. And without it, the PUC could not ensure poor ratepayers could continue accessing other important customer protections unrelated to the System Benefit Fund — such as the right to pay security deposits in two installments and to obtain waivers on late fees.
SB 1976 fixes this problem by directing the HHSC to continue its coordination with the PUC. By extension, the legislation also leaves the door open for the provision of additional benefits to low-income Texans in the future. The bill likewise makes it possible for retail electric providers to offer their own customer service protections — including bill discounts — at the retail electric providers’ discretion.
“We want to thank state Sen. John Whitmire and state Rep. Chris Paddie for their leadership on this issue,” said TCAP Executive Director Jay Doegey. “Although we lament the loss of the System Benefit Fund, the potential adoption this year of Senate Bill 1976 is still good news for Texans.”
SB 1976 has been given the green light by the Texas House and Senate, and now heads to Gov. Greg Abbot for his signature.
Is a policy analyst consultant for TCAP, a coalition of political subdivisions in Texas that purchase electricity in the deregulated market for their own governmental use. Because energy costs are typically a significant budget item to our members, TCAP is consistently looking for ways to save our members money, through cost-saving contracts, energy efficiency or demand response programs.