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Texas Staff Say PUCT Should Determine Threshold Issue of Whether Enrollment Rule Waiver Request Better Addressed Through Rulemaking To Maintain Competitive Balance Among REPs

July 7, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The Public Utility Commission of Texas should determine as a threshold matter whether the issue of IGS Energy's sought good cause exception to the enrollment requirements in P.U.C. SUBST. R. 25.474(f)(2) and (3), to enable a new enrollment method developed by IGS Energy, is better addressed through a rulemaking rather than a petition for a good cause exception.

As previously reported, IGS Energy (Accent Energy) is seeking a good cause exception to the rule to allow customers solicited door-to-door the option of choosing a retail electric product via a hand-held electronic device without requiring the customer to participate in a recorded third-party verification voice telephone call. IGS Energy has said that the current Texas rules governing door-to-door sales can be read to require that, even where an enrolling customer has electronically interfaced with IGS through its new iPad technology, the customer cannot have that choice effectuated without participating in a recorded third-party verification phone call. Under IGS Energy's iPad-based door-to-door sales and enrollment process, the customer would verify their consent to the terms and conditions via their electronic signature that is captured as a digital image.

Click here for more specifics on the IGS Energy enrollment process

In a proposed list of issues for hearing, Staff requested the Commission address the following threshold question: Do the proposed exceptions to the requirements in 16 TAC § 25.474(f)(2) and (3) for door-to-door solicitation using handheld electronic devices constitute changes that would more appropriately be addressed as a rulemaking to preserve customer protections and maintain competitive balance among Retail Electric Providers (REPs)?

"[T]his threshold question should be addressed at this stage of the proceeding so the Commission may determine whether exceptions to the required disclosures and telephone verification for door-to-door solicitation is better addressed as a rulemaking," Staff said.

"It is anticipated that TXU [an intervenor in the case] as well as other REPs will likely be seeking good cause exceptions if IGS Energy's request is granted. In such a case, IGS Energy will be provided a competitive advantage until other REPs are granted similar good cause exceptions. And, each such REP will likely be seeking an exception with different elements that they believe provide sufficient protections. Presuming the Commission is convinced that the requirement for telephonic verification is unnecessary when using handheld, electronic devices in door-to-door solicitations, then duplicative proceedings involving different REPs and different programs is an inefficient method to achieve that outcome. A rulemaking allows the Commission to consider all potential programs desired by the REPs to cultivate the best procedures for incorporating new technology while still protecting customers," Staff said

"Whether ... specific safeguards [proposed by IGS] are sufficient to protect the customer in the manner that is intended under 16 TAC § 25.474(f)(3) is a question better vetted through the rulemaking process, wherein all market participants may provide feedback and suggestions to create the best framework to protect customers considering new technology in door-to-door solicitation," Staff said

To the extent that the hearing on IGS Energy's specific petition proceeds, Staff said that the following question, among others, should be addressed: "Is enrolling customers in door-to-door solicitation via a handheld electronic device in the presence of the REP representative different from applicants enrolling via the internet where the applicant does not have a sales representative present and is seeking out new services on his or her own?"

Docket 44518

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