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Texas City "Believed" It Had Original Jurisdiction Over Complaint Against Retail Provider, Now Reviewing Applicable Law

March 31, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The City of McAllen, Texas said in a filing with the Public Utility Commission of Texas that it "believed" it had original jurisdiction over a complaint against a retail provider, but said that it is now in the process of "reviewing" the facts and applicable law to reach its "definitive" position.

As first reported by EnergyChoiceMatters.com (click here for background), the City of McAllen, Texas had previously asserted jurisdiction in a complaint case brought to the City by customers LFD, LLC d/b/a LFD Homefurnishings (LFD) against AP Gas and Electric, and ordered AP Gas and Electric to refund a $250,000 early termination fee to the customer.

APG&E has filed a petition with the Public Utility Commission of Texas seeking the issuance of a declaratory or other order stating that the Mayor of the City of McAllen, acting on the City's behalf, exceeded the City's jurisdiction when hearing and ruling on the complaint

In such petition, APG&E argued that 16 TEX. ADMIN. CODE § 22.242 grants the City of McAllen with original jurisdiction over an, "electric utility providing service," and that a REP does not meet this definition, noting that the PUCT in prior rulings has found that cities lack broader regulatory authority on municipalities over REPs apart from cities' ability to impose registration requirements

In its initial response to the APG&E petition, which seeks more time to more substantively reply, the City of McAllen told the PUCT that, "As of this date, the City has not determined its formal position in this matter. When the Petition was filed, the City believed it had original jurisdiction. The City is now in the process of reviewing the facts and applicable law to reach its definitive position."

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