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Texas Commission Denies Use of "AEP Retail Energy" Name by REP Serving Mass Market
August 17, 2012
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Copyright 2010-
This morning the Public Utility Commission of Texas voted 2-1 to reverse a proposal for decision which would have granted an amendment to the retail electric provider certificate of AEP Texas Commercial & Industrial Retail Limited Partnership (d/b/a AEP Retail Energy) to allow AEP Retail Energy to serve customers under 1 MW.
As was only reported by Matters, the proposal for decision would have granted approval for the use of the AEP Retail Energy name by a retail electric provider serving the mass market, finding that the REP's trade and certificated names were not deceptive or misleading, and were not in violation of Commission Rules
However, Commissioner Kenneth Anderson and Commissioner Rolando Pablos found that the proposed use, in this specific case, of the AEP name and service mark by both a retail electric provider and the affiliated transmission and distribution utilities is, in fact, inconsistent with the substantive rules.
Anderson stressed that his decision was fact-specific, and based on evidence as to how AEP Retail Energy would use the AEP service mark, including evidence in the record, as described by Anderson, that there would be, "a link that was going to go from your [AEP] TDU webpage to the competitive supplier."
Anderson said that the shared use of a corporate name or service mark by a transmission and distribution utility and competitive affiliate may not necessarily violate the substantive rules, and that the issue would depend on the specific facts and circumstances of each instance, and how the common name and service mark were used.
Pablos said that allowing the use of the AEP service mark by both a retail electric provider in the mass market and also the existing transmission and distribution utilities, "opens up a can of worms," and, to a certain extent, constitutes joint marketing.
The situation contemplated by allowing such dual use of a service mark and name, "creates confusion," Pablos said.
Pablos did not oppose utilities having affiliates in the competitive space, but said that there must be a "bright-line" distinction among the companies, and did not find that the use of the term "retail" in the name "AEP Retail Energy" met this bright-line standard.
Chairman Donna Nelson dissented, and would have granted the application to allow AEP Retail Energy to serve customers under 1 MW. Nelson said that customers were sophisticated and understood, after 10 years of retail choice, the difference between REPs and TDUs.
Copyright 2010-
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