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Texas REPs: Proposed "Three Step" Enrollment Process Confusing To Customers

December 13, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott (at) energychoicematters.com

A proposed Texas process for door-to-door customers enrolled via portable electronic device (PED) described as a, "three-step enrollment process," by retail electric providers would be confusing to customers, the Retail Electric Provider Coalition said.

The REP Coalition was addressing a proposed provision proposed to be applicable only to door-to-door PED-enrolled customers who receive confirmation of enrollment via a means other than first class mail.

As first reported by EnergyChoiceMatters.com (click here for details), the proposed rules provide that if the confirmation of enrollment, which shall also include clear language regarding the rescission period, is sent by any means other than first-class mail, "the confirmation must allow for the applicant to confirm receipt and the three-day right of rescission period shall not begin until the REP receives the applicant's confirmation."

In other words, if the REP sends the enrollment confirmation notice by email or text, the three-day right of rescission shall not begin until the REP receives the applicant's confirmation of receipt of such notice. Note that the absence of a customer's confirmation that they received the enrollment confirmation information would not prevent the enrollment from being executed; it would only delay the start of the rescission period.

Under the current substantive rules, a REP, "may submit an applicant’s switch request to the registration agent prior to the expiration of the rescission period prescribed by subsection (j) of this section, provided that if the customer makes a timely request to cancel service the REP shall take action to ensure that the switch is canceled or the customer is promptly returned to its chosen REP without inconvenience or additional cost to the customer."

However, the REP Coalition described the provision requiring the customer to confirm their receipt of a confirmation notice sent by means other than first-class mail thusly, "The second sentence of subsection (f)(5)(D) of the proposed rule would require a customer to confirm receipt of the enrollment confirmation before the switch or move-in could proceed (unless the confirmation was sent via first class mail)."

Although not explicit, it is possible the REP Coalition was speaking as to the practical effect of the proposed rule, in that, while the REP could legally submit an enrollment prior to receipt of the customer's confirmation that they received the enrollment confirmation notice, no REP would do so due to the risk of having an indefinitely open rescission period, under which, taken to its extreme, the customer could elect to rescind the contract just prior to the completion of the contract's term, since the customer never confirmed the receipt of the confirmation letter which starts the clock for the rescission period.

"This requirement would, in effect, add a third step to an enrollment that has already been authorized by the customer pursuant to subsection (f)(3) and verified pursuant to subsection (f)(5)(B). Moreover, this new 'confirmation' step would likely take place after the enrollment interaction with the REP or aggregator has been completed. The addition of the confirmation step is unnecessary and would likely prove confusing to customers who have never previously been required to undergo a three-step enrollment process," the REP Coalition said

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