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Texas PUC Staff File Draft Proposal For Adoption For Door-to-Door Enrollments Using Portable Electronic Devices

Addresses Earlier Proposal Which Would Have Indefinitely Extended Rescission Period

Addresses Requirement for REPs To Inform Customers of Potential Early Termination Fees From Current REP

February 3, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Staff of the Public Utilities Commission of Texas have filed a draft proposal for adoption that would establish rules to allow retail electric providers to use portable electronic devices (PEDs) to enroll customers in door-to-door sales

Notably, the draft proposal for adoption would remove an earlier proposal which would have essentially indefinitely extended the rescission period for customers who did not affirm receipt of an email from the REP.

The proposal for publication had included the provision that if an enrollment confirmation (which includes notification of the right of rescission) was, "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."

Such language would have, for enrollment confirmations not sent via first class mail, extended the rescission period indefinitely in cases where the customer never acknowledges receipt of the enrollment notice, since the clock of the three-day rescission period would not start until the customer affirmed that they received the REP's enrollment confirmation notice

The draft proposal for adoption deletes from the proposed rule the language, "If the confirmation 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."

The draft proposal for adoption, however, does retain the requirement to notify door-to-door customers enrolling via portable electronic device of the potential for an early termination fee from the customer's current REP.

Specifically, if the REP (or aggregator) provides the disclosures using a PED, the REP or aggregator shall, "advise the applicant that if the applicant is under contract with another REP, termination fees for that contract may apply."

Such advisement only concerns the potential presence of an early termination fee, and the enrolling REP is not required to determine the amount of any such fee.

"The commission determines that the unique nature of using a PED for door-to-door sales without requiring third-party verification should have this additional customer protection," the draft preamble states

The draft proposal for adoption would also decline to extend this provision concerning the required notice of a potential early termination fee to door-to-door sales made without the use of a PED, as such recommendation for consumer advocates was outside the scope of the rulemaking

The draft proposal for adoption would also decline consumer advocates' recommendation that enrolling REPs be required to time the switch to avoid early termination fees or provide a specific date for the switch to avoid early termination fees.

The draft proposal for adoption maintains the process envisioned by the proposal for publication where, for customers enrolled via PED, the customer needs to provide confirmation twice during enrollment -- first to confirm they agree to receive disclosures via the PED, and second to verify the actual enrollment.

If a REP or aggregator provides the disclosures using a PED, the REP or aggregator shall, "obtain an electronic signature from the applicant that adheres to Texas and federal guidelines or, alternatively, require unassisted direct entry of a uniquely identifiable input by the applicant affirming that the applicant has read and understands the disclosures, terms of service, EFL, PDS, if applicable, and all written or electronic materials disclosed prior to verification of authorization."

REPs using a PED in door-to-door sales would be required to, "obtain confirmation from the applicant that the applicant is authorized to perform the enrollment and consents to the enrollment being verified using a PED."

Under the draft proposal for adoption, if the applicant consents to verification being conducted using a PED, the REP or aggregator shall:

(i) obtain or confirm the applicant’s email address or other agreed upon means of communication, billing name, billing address, service address, and name of any authorized representative;

(ii) obtain or confirm the applicant’s electric service identifier (ESI-ID), if available;

(iii) obtain or confirm at least one of the following account access verification data for the applicant: last four digits of the social security number, mother’s maiden name, city or town of birth, month and day of birth, driver’s license number or government issued identification number. For non-residential applicants, the REP may obtain the applicant’s federal tax identification number; and

(iv) obtain applicant’s electronic signature that adheres to Texas and federal guidelines or, alternatively, require unassisted direct entry of a uniquely identifiable input by the applicant matching the input obtained pursuant to paragraph (3) of this subsection [relating to authorization to receive disclosures via PED noted above] affirming that the customer or applicant is authorized to select or change REPs for the service address and authorizes the new REP to perform necessary tasks to complete a switch or move-in for the customer’s or applicant’s service with the new REP.

For the purpose of the proposed rule, a PED is defined as a nonstationary light-weight, electrically-powered device that is capable of communications, data storage and processing, and accessing, directly or indirectly, the REP or aggregator network. Examples of PEDs include, but are not limited to: laptop computers, tablets, tablet computers, personal digital assistants, and smart phones.

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