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Data Miners Seeking Texas Customer AMI Data Say They Shouldn't Be Subject To Same Requirements As Retail Electric Providers

March 28, 2017

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

Third party non-LSE energy service providers seeking access to customers' Smart Meter Texas (SMT) data should not be held to the same standards as retail electric providers, several data firms said in comments to the Public Utility Commission of Texas

One such non-LSE energy service provider, Awesome Power, which uses SMT data to provide a cost comparison of retail electric plans, said, "[t]hird parties should not be held to the same standard as REPs."

"Choosing a REP is mandatory; if you do not share your usage data with a REP, you will not have electricity. In contrast, agreeing to share your data with a third party is entirely optional," Awesome Power said

"What interest does PUC have in demanding a certain level of privacy and data security, over and above what is required of any other website? People can read a third party's privacy policy and decide for themselves if they are happy sharing their usage data and other information with that third party. There is no reason for any special rules to apply. People can make their own decisions," Awesome Power said

In a less blunt fashion, the Texas Advanced Energy Business Alliance made similar comments.

"REPs provide what is in some cases a life-critical service, and what is for everyone a necessary service for modern daily life and successful business operation. REPs have various rights and responsibilities related to retail electric service, including but not limited to the authority to request that a transmission and distribution utility (TDU) either connect or disconnect a customer and the power to report customers to credit agencies, thus affecting a consumers credit score. CSPs [competitive energy service providers] that do not provide retail electric service do not have the same level of power over retail customers and their retail service, and it is important to keep this distinction in mind when considering the level of regulation needed for CSPs. In short, the level of regulation required for CSPs should not be equal to that of REPs," TAEBA said

The South Central Partnership For Energy Efficiency said that to the extent the PUCT does deem additional regulatory protections necessary for third party access to data, then such third parties should receive, "broader latitude," in accessing SMT, including the use of a "warrant" process for customer authorization.

"If the PUCT determines that additional regulatory protections are necessary in order to simplify the authorized access of third-parties to authenticated customer energy data, we would argue that additional simplifications of the customer data sharing process should also be adopted, beyond those highlighted here. That is, if the Commission determines that CSPs should themselves be brought further under the jurisdiction of the PUCT directly, then they should also be afforded broader latitude. This would entail what has come to be known as a "warrant" process, in that it would allow a PUCT registered or licensed CSP to request energy data from SMT for customers for which it warrants to have obtained authenticated authorization to do so," SPEER said

In contrast, the Steering Committee of Cities Served by Oncor said that the PUCT should initiate a, "formal certification and oversight process," for third parties seeking access to SMT data

Likewise, the joint TDUs said, "[i]f third-parties are to be afforded the same considerations and accessibility to retail customers' advanced metering data as REPs, they should go through a registration process with the Commission and be subject to the Commission's oversight just as the REPs are."

However, the Alliance for Retail Markets noted that under PURA, the PUCT lacks jurisdiction over entities such as non-REP energy service providers.

While certain stakeholders have suggested enforcing non-REP energy service provider compliance via the SMT agreement, ARM said that, without authority from PURA over such entities, any such mechanisms would be unenforceable.

"[A]ny Commission imposition of the privacy and disclosure obligations in its customer protection rules upon CSPs would be unenforceable as a matter of law, regardless of the reason (e.g., parity with REPs, facilitation of the SMT third-party authorization process) for expanding those rules' application," ARM said

ARM compared the situation to the PUCT's recent conclusion regarding third-party authorization for customer interconnection agreements (IA), where the PUCT expressed concern that well-intentioned efforts to subject DG installers to Commission jurisdiction via installers' signing of the IA would exceed the authority granted under PURA, with the PUCT finding that, "jurisdiction cannot be conferred by agreement."

Given that the PUCT lacks jurisdiction and authority to regulate the business activities of a third party such as a CSP, ARM said that access to SMT data must reflect this reality. ARM said that the current process was designed with this in mind, and is working well in achieving the stated statutory goals for SMT, and PURA's emphasis on data privacy.

"The current process by which a customer authorizes third-party access to the customer's consumption information stored in the SMT data repository is deliberately and purposefully designed to safeguard against the unauthorized disclosure of such proprietary customer information," ARM said

"This secure and trustworthy authorization process allows SMT to track and document the customer's provision of affirmative consent through verifiable means. To this end, it reasonably permits SMT to adequately safeguard against the unauthorized release of proprietary customer information to a third party. It also provides a third party with convenient access to the information on balance with the paramount need to protect the customer's privacy interests in this information. The Legislature and the Commission have made it abundantly clear that usage data and other proprietary customer information belong to the customer, are highly sensitive, and must be protected. Electric utilities and REPs are held to high standards in the protection of this information and are subject to enforcement actions, including administrative penalties, for abusing or failing to protect proprietary customer data. The absence of any Commission regulatory and enforcement authority over CSPs makes it difficult to approach the third-party authorization issue much differently than the manner of the status quo," ARM said

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