Current through Reg. 50, No. 13; March 28, 2025
(a) Billing and payment. Within a reasonable
time after the first day of each month, transmission service providers (TSPs)
shall issue invoices for the prior month's transmission service to distribution
service providers (DSPs) and customers responsible for the export of power from
the Electric Reliability Council of Texas (ERCOT) region.
(1) An invoice for transmission service shall
be paid so that the TSP will receive the funds by the 35th calendar day after
the date of issuance of the invoice, unless the TSP and the transmission
service customer agree on another mutually acceptable deadline. All payments
shall be made in immediately available funds payable to the TSP, or by wire
transfer to a bank named by the service provider or by other mutually
acceptable terms.
(2) Interest on
any unpaid amount shall be calculated by using the interest rate applicable to
overbillings and underbillings, set by the commission, and compounded monthly.
Interest on delinquent amounts shall be calculated from the due date of the
bill to the date of payment. When payments are made by mail, bills shall be
considered as having been paid on the date of receipt by the TSP.
(3) In the event the transmission service
customer fails, for any reason other than a billing dispute as described in
subparagraph (A) of this paragraph, to make payment to the TSP on or before the
due date, and such failure of payment is not corrected within 30 calendar days
after the TSP notifies the customer to cure such failure, the customer shall be
deemed to be in default.
(A) Upon the
occurrence of a default, the TSP may initiate a proceeding with the commission
to terminate service. If the commission finds that a default has occurred, the
transmission service customer shall pay to the TSP an amount equal to two times
the amount of the payment that the customer failed to pay, in addition to any
other remedy ordered by the commission. In the event of a billing dispute
between the TSP and the transmission service customer, the TSP will continue to
provide service during the pendency of the proceeding, as long as the customer:
(i) continues to make all payments not in
dispute; and
(ii) pays into an
independent escrow account the portion of the invoice in dispute, pending
resolution of such dispute.
(B) If the transmission service customer
fails to meet the requirements in subparagraph (A) of this paragraph, then the
TSP will provide notice to the customer and to the commission of its intention
to terminate service.
(C) Any
dispute arising in connection with the termination or proposed termination of
service shall be referred to the alternative dispute resolution process
described in §
25.203 of this title (relating to
Alternative Dispute Resolution (ADR)).
(b) Indemnification and liability.
(1) Neither a transmission service customer
nor TSP shall be liable to the other for damages for any act that is beyond
such party's control, including any event that is a result of an act of God,
labor disturbance, act of the public enemy, war, insurrection, riot, fire,
storm or flood, explosion, breakage or accident to machinery or equipment, a
curtailment, order, regulation or restriction imposed by governmental,
military, or lawfully established civilian authorities, or by the making of
necessary repairs upon the property or equipment of either party.
(2) Notwithstanding the provisions of
paragraph (1) of this subsection, a transmission service customer and TSP shall
assume all liability for, and shall indemnify each other for, any losses
resulting from negligence or other fault in the design, construction, or
operation of their respective facilities. Such liability shall include a
transmission service customer or TSP's monetary losses, costs and expenses of
defending an action or claim made by a third person, payments for damages
related to the death or injury of any person, damage to the property of the TSP
or transmission service customer, and payments for damages to the property of a
third person, and damages for the disruption of the business of a third person.
This paragraph does not create a liability on the part of a TSP or transmission
service customer to a retail customer or other third person, but requires
indemnification where such liability exists. The indemnification required under
this paragraph does not include responsibility for the TSP's or transmission
service customer's costs and expenses of prosecuting or defending an action or
claim against the other, or damages for the disruption of the business of the
service provider or customer. The limitations on liability set forth in this
subsection do not apply in cases of gross negligence or intentional
wrongdoing.
(c)
Creditworthiness for transmission service. For the purpose of determining the
ability of a transmission service customer to meet its obligations related to
transmission and any other obligation in Division 1 of this subchapter
(relating to Open-Access Comparable Transmission Service for Electric Utilities
in the Electric Reliability Council of Texas), a TSP may require reasonable
credit review procedures. This review shall be made in accordance with standard
commercial practices.
(1) The TSP may require
a transmission service customer to provide and maintain in effect during the
term of service, an unconditional and irrevocable letter of credit in a
reasonable amount as security to meet its responsibilities and obligations
under Division 1 of this subchapter or an alternative form of security proposed
by the customer and acceptable to the service provider and consistent with
commercial practices established by the Uniform Commercial Code that reasonably
protects the TSP against the risk of non-payment. Credit worthiness standards
must be applied to all transmission service customers on a non-discriminatory
basis.
(2) If a transmission
service customer is creditworthy, no letter of credit or alternative form of
security shall be required.