Current through Reg. 50, No. 13; March 28, 2025
(a)
Applicability. This section applies to a transmission and distribution utility
(TDU) and a retail electric provider (REP) in an area in which customer choice
is available. The implementation of this section shall take effect on July 1,
2010. This section does not limit a TDU's or REP's right to seek redress for
meter tampering through civil and criminal proceedings.
(b) Back-billing and meter tampering charges.
(1) If any meter is found to be non-compliant
with the accuracy standards required by §
25.121(e) of
this title (relating to Meter Requirements), or if the TDU has provided
incorrect consumption or billing data to the REP, then consumption or billing
data shall be corrected, and adjusted bills shall be rendered. The TDU shall
not back-bill for any period in which the current customer was not the customer
of record, or the current REP was not the REP of record. The TDU shall not
assess any meter tampering fees, meter repair charges, or restoration charges
due to meter tampering, if the current customer was not the customer of record
when the meter tampering began, or if the current REP was not the REP of record
when the meter tampering began.
(2)
Back-billing under this subsection shall not exceed a period of:
(A) three months, if the TDU discovers a
non-compliant meter or other equipment that has not been affected by meter
tampering and the back-billing would result in additional electricity charges
to the customer; or
(B) six months,
if the TDU discovers a non-compliant meter that has been affected by meter
tampering and the back-billing would result in additional charges or fees to
the customer.
(3) The
back-billing shall not be limited if the TDU discovers a non-compliant meter
that has not been affected by meter tampering or has provided incorrect meter
readings that are unrelated to meter tampering and the back-billing would
result in a credit to the customer.
(4) In instances where the TDU finds it
appropriate, the TDU may assess charges for services received by the customer
prior to the six months back-billed to the REP, and the charges assessed beyond
six months shall be sent to the end-use customer directly by the TDU. Charges
assessed by the TDU pursuant to this paragraph may extend to periods in which
the current REP of Record was not the REP of record. Energy charges shall be
determined using the ERCOT-wide bus average hub price as calculated by the
independent system operator for the applicable time periods. The utility shall
notify the current REP of record of the charges assessed to the customer beyond
six months. The TDU shall pay the current REP of record 50% of the energy
charges collected for the period of time in which that REP was the REP of
record. The TDU shall provide the energy charges to the REP pursuant to a
method agreed to by the REP and the TDU.
(c) Calculation of charges. The charge for
any period in which the meter was not in compliance with the accuracy standard
shall be based on an estimate using the standards for calculation as stated in
the Tariff for Retail Delivery Service, Section 4.8.1.4, adopted pursuant to
§
25.214 of this title (relating to
Terms and Conditions of Retail Delivery Service Provided by Investor Owned
Transmission and Distribution Utilities).
(d) TDU responsibilities concerning metering
accuracy. A TDU shall undertake all reasonable efforts to minimize losses
associated with inaccurate meters and meter tampering, including the prompt
detection and investigation of circumstances in which a meter is not accurately
recording and reporting consumption. The TDU shall also take the steps
necessary to deter meter tampering and to mitigate the adverse impacts of
inaccurate meters on the metering and billing of electricity consumption.
(1) Once meter tampering is determined to
have taken place, the TDU shall restore normal meter registration and reading
within three business days. If the tampering involves a bypass of the meter,
and the TDU cannot eliminate the bypass, the TDU shall, within this period,
disconnect service to the premises.
(2) Following disconnection, the TDU shall
provide written notice of disconnection to the customer of record and notice to
the REP using a standard market process.
(3) The TDU shall, concurrent with the
back-billing, supply the REP with the revised estimated meter read resulting
from consumption at the premises that the TDU has determined was not previously
billed as a result of the meter tampering. The electronic transaction
transmitting the estimated meter read to the REP shall clearly denote that the
meter read is an estimate and shall state the reason for the
estimation.
(4) All applicable
meter repair and restoration charges shall be sent in a single transaction by
the TDU and shall not be spread over several months. The TDU shall send
corresponding back-billing transactions concurrently with the transaction for
meter repair and restoration charges.
(5) The TDU shall investigate, and remedy if
necessary, all instances of meter tampering reported under this section within
ten business days from the date the tampering was reported to the
TDU.
(6) The TDU may not invoice
the current REP for any back-billed TDU charges related to meter tampering or
for any meter repair and restoration charges, until the TDU has placed a
switch-hold on the affected ESI pursuant to subsection (g) of this section and
collected and prepared the following information in support of a determination
of meter tampering. The TDU shall make the information specified in this
paragraph electronically and readily available to the REP of record through a
secure method, without requiring the REP of record to first request the
information. The TDU shall also provide the affected customer this information
within five business days of the customer's request. The TDU shall provide
reasonable and timely access to the physical items specified in subparagraph
(D) of this paragraph to any requesting REP of record or customer.
(A) Photographs of the premises including a
general photograph of the residence/business (showing address number if
available), a wide shot photograph of the meter against the wall or where
attached to the premises, and close-ups of the meter and/or diversion evidence
(prior to removing the meter cover if the tampering is obvious and after
removing the meter cover if the damage is inside the meter), and any other
relevant evidence that can be photographed;
(B) A detailed description of the detection
and investigation methodology employed by the TDU;
(C) Documentation of the methodology or
rationale used by the TDU to determine the date or approximate date upon which
the meter ceased accurately registering consumption at the premises and the
detailed calculation and methodology for estimating consumption subject to
back-billing, and the methodology used to calculate the back-billing;
(D) The affected meter and other metering
equipment that the TDU may need to remove from the premises because the
tampering involved an unauthorized alteration, manipulation, change or
modification of that equipment, and any available object used for meter
tampering;
(E) Any other reliable
and credible information that supports its conclusion that the meter was
tampered with, while maintaining confidentiality of anonymous tips provided to
the TDU; and
(F) A sworn affidavit
from an employee or other representative of the TDU attesting to the veracity
of the information.
(7)
The information specified in paragraph (6) of this subsection shall be retained
by the TDU for 24 months from the date the TDU invoices the REP pursuant to
paragraph (6) of this subsection and, if a legal proceeding is initiated during
those 24 months, the information shall be retained by the TDU until the final
resolution of that proceeding, or 24 months, whichever is later.
(e) Notification of meter
tampering. The TDU shall notify the REP within one business day, upon a
determination that meter tampering has occurred through a standard market
process. The TDU shall also notify the customer within two business days of the
determination of meter tampering.
(1) The
notice to the customer shall be either provided to the customer in the form of
a door hanger, or mailed to the premises address assigned to the ESI ID or an
address provided by the REP if there is no valid postal premises address
assigned to the ESI ID.
(2) The
notice shall include the following information in the same format as follows:
Attached
Graphic
(f) Burden of Proof. If a retail customer
challenges the TDU's determination of meter tampering, or the imposition of
charges based on any such determination, in a contested case proceeding before
the commission, the TDU shall bear the burden of proof that meter tampering
occurred.
(g) Switch-hold and
disconnection of service. Upon determination by the TDU that tampering has
occurred at a premises, the TDU shall on the same day place a switch-hold on
the ESI ID, which shall prevent a switch or move-in transaction from being
completed for the ESI ID. If the REP exercises its right to disconnect service
for non-payment pursuant to §
25.483 of this title (relating to
Disconnection of Service), the switch-hold shall continue to remain in place.
The switch-hold shall remain in effect until the REP of record notifies the TDU
to remove the switch-hold because the customer has satisfied its payment
obligations for back-billings and meter repair charges due to tampering, or
until such time as removal of the switch-hold is otherwise authorized by this
section. The TDU shall create and maintain a secure list of ESI IDs with
switch-holds that REPs may access. The list shall not include any customer
information other than the ESI ID and date the switch-hold was placed. The list
shall be updated daily, and made available through a secure means by the TDU.
The TDU may provide this list in a secure format through the web portal
developed as part of its AMS deployment.
(1)
The REP via a standard market process shall submit a request to remove the
switch-hold once satisfactory payment is received from the retail customer for
the back-billings and meter repair and restoration charges.
(2) For a customer receiving service under
§
25.498 of this title (relating to
Retail Electric Service Using a Customer Prepayment Device or System), a TDU
shall disconnect service within one day of its receipt of the REP's request for
disconnection if the TDU has determined that tampering with the customer's
meter has occurred.
(3) At the time
of a mass transition, the TDU shall remove the switch-hold for any ESI ID that
is transitioned to a provider of last resort (POLR). No later than the business
day following the completion of the last mass transition switch, the TDU shall
provide all POLR providers a list of ESI IDs previously subject to a
switch-hold.
(4) When the REP of
record issues a move-out request for an ESI ID under a switch-hold, the REP of
record's relationship with the ESI ID is terminated and the switch-hold shall
be removed.
(h) Move-ins
with a valid switch-hold.
(1) If a retail
applicant for electric service selects a REP and the selected REP submits a
move-in transaction for an ESI ID that has an existing switch-hold as defined
in subsection (g) of this section due to meter tampering, the TDU shall notify
the selected REP that the move-in transaction is rejected via a standard market
process. If the selected REP determines the applicant's premise has an existing
switch-hold, the selected REP may request removal of the switch-hold prior to
submitting a move-in transaction.
(2) The selected REP shall use best efforts
to promptly determine whether the applicant for electric service is a new
occupant not associated with the customer for which the switch-hold was imposed
and, if so, obtain adequate documentation that the move-in request is
legitimate. Adequate documentation shall include a copy of a signed lease, an
affidavit of a landlord, closing documents, a certificate of occupancy, a
utility bill dated within the past two months from a different premise, or
other comparable documentation in the name of the retail applicant for electric
service, and shall include a signed statement from the applicant stating that
the applicant is a new occupant of the premises and is not associated with the
preceding occupant.
(3) Upon
receipt of such information from the applicant, the selected REP shall ensure
that the applicant's financial information, driver's license number, and social
security number and federal tax ID number are protected from improper release.
Another REP or a TDU that receives such information from the selected REP shall
also protect such information from release.
(4) The selected REP shall initiate the use
of ERCOT's MarkeTrak issue process to request removal of the switch-hold and
provide the supporting documentation to the TDU. This request and supporting
documentation shall be subsequently provided to the current REP of record
through the MarkeTrak process.
(5)
The current REP of record may submit other information in response to the
supporting documentation submitted by the selected REP, using the MarkeTrak
process. This additional information shall be made available to the TDU and the
selected REP through the MarkeTrak process. Within four business hours of
receiving the request to remove the switch-hold and supporting documentation,
the TDU shall determine whether the switch-hold should be removed by confirming
the documentation provided under subsection (h)(2) of this section is adequate.
In making this decision, the TDU shall take into consideration any additional
information submitted by the current REP of record. If the TDU determines the
documentation is inadequate, the selected REP and the current REP of record
shall be immediately notified through the MarkeTrak process that the request to
remove the switch-hold is rejected, and the switch-hold shall remain in effect
pursuant to subsection (g) of this section. If the TDU concludes that the
documentation is adequate, it shall immediately grant the request to remove the
switch-hold and both the selected REP and current REP record shall be
immediately notified of the removal through the MarkeTrak process. After being
notified of the removal of the switch-hold, the selected REP shall resubmit the
move-in transaction to initiate the move-in request.
(6) A TX SET transaction or process developed
specifically for the purpose of addressing the treatment of switch-holds in the
context of move-in transactions shall be used as a substitute for the
equivalent process described in this subsection once that TX SET transaction
becomes available. The Electric Reliability Council of Texas (ERCOT) shall
develop this TX SET transaction process as soon as possible.
(7) For a move-in transaction indicating that
the ESI ID is subject to a continuous service agreement, the TDU shall remove
any switch-hold on that ESI ID and complete the move-in.
(i) Additional requirements.
(1) By April 1 of each calendar year, each
TDU shall file with the commission a report detailing the following for the
previous calendar year concerning meter tampering:
(A) Total number of customers for which meter
tampering was determined by the TDU;
(B) The number of customers back-billed and
the average of the following charges per customer:
(i) utility delivery charges; and
(ii) meter repair, and restoration
charges.
(C) Total
number of cases referred to law enforcement for prosecution that included
photographs, a descriptive incident report, affidavit, and notification to law
enforcement of the availability of physical evidence in the case;
(D) Total number of cases
prosecuted;
(E) Switch-hold
statistics, including the number of ESI IDs for which a switch-hold was placed,
the number of ESI IDs placed under a switch hold for three months, six months,
one year, or longer; and
(F) The
number of premises for which a TDU assessed charges directly to the customer
pursuant to subsection (b)(4) of this section.
(2) The utility shall maintain adequate staff
responsible for monitoring suspicious activity related to meter tampering in
its service territory. The utility shall establish a process for REPs and
customers to report meter tampering. The TDU shall also include a customer
hotline telephone number or email address on its website, prominently displayed
on its front page for electric service.
(3) The utility shall maintain a record of
meter tampering investigations. The record shall include a timeline by ESI ID,
starting with the date information is reported by a REP, landlord, TDU employee
or other individual on meter tampering, the date the TDU completed the
investigation, and the date the TDU issued the back-billing to the REP. The
utility shall make this information available to the commission upon
request.
(4) The utility shall
engage in a customer information campaign to educate customers on the safety
hazards associated with electricity theft, diversion, and meter
tampering.
(j)
Proprietary Customer Information. The prohibition against the release of
proprietary customer information in §
25.472 of this title (relating to
Privacy of Customer Information) does not prohibit the release of customer
proprietary information to the registration agent, a REP, a POLR provider, or a
TDU when the information is necessary to complete a market transaction
described in this section. Customer proprietary information provided in
accordance with this section shall be treated as confidential, shall be
securely destroyed by the current REP of record after 24 months, and shall be
used only for the purposes of evaluating whether to lift a switch-hold and
cannot be used for any other purpose, including but not limited to marketing or
sales efforts by the current REP.
