Aug. 18--If you have a fixed-rate contract for electricity, do you know when it expires?

In the past, some residential customers in the state's deregulated electricity market were burned because they didn't know that their fixed-rate contract had expired. They were automatically switched to higher variable, month-to-month rates by their retail electric provider.

Other consumers switching from one provider to another were irked on finding that the conversion could take up to 45 days and that they could temporarily be saddled with considerably higher interim rates.

Reducing hassles

New state regulations are designed to alert consumers of looming contract expirations and accelerate switching from one provider to another to quickly secure a lower electric rate.

A new state law that takes effect no later than Dec. 1 will require providers to notify residential customers at least 30 days before their fixed contract expires. Before the state law kicks in, an interim Texas Public Utility Commission rule that took effect Monday requires providers to give at least 14 days' notice of a contract expiration.

In the past, many electric customers have been unaware that their contracts had expired or were about to. In such instances, the provider usually switches the customer to a variable-rate plan that is "often at a higher rate," said Terry Hadley, spokesman for the PUC.

Accelerated switching

Another new regulation requires that switching consumers from one provider to another take effect within seven business days.

The new rule took effect July 5, but has received limited media attention. It includes a transitional provision that allows providers to estimate electric charges during the conversion from one plan to another, based on past electric usage, if there isn't time to get a meter reading during the reduced switchover period. The final bill would be reconciled after the meter was read, Hadley said.

Effective Dec. 1, the transitional provision will end and bills sent to customers switching providers will have to be based on actual meter readings, Hadley said.

Critic of rule

Carol Biedrzycki, executive director of the Texas Ratepayers Organization to Save Energy, said the transitional rule could result in some consumers being jarred by an additional charge if a belated meter reading shows higher usage than initially estimated.

"I don't like that part of the rule at all. I just think the [retail electric providers] ought to accept the estimate and eat it [any added cost]," she said.