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TXU Opposes Aggregator's Sought Use of Name "Texas Utilities Exchange", Alleging Name Is "Misleading"

May 10, 2017

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

TXU Energy Retail Company LLC filed comments with the Public Utility Commission of Texas asking that the PUCT deny the application of Texas Utilities Exchange, LLC to register as an aggregator under the name Texas Utilities Exchange, LLC, as "TXU asserts that use of the name Texas Utilities Exchange, LLC by the applicant is misleading and requests that the application be denied."

Texas Utilities Exchange's application had been first reported by EnergyChoiceMatters.com

Noting the history of the name "Texas Utilities" TXU stated, "Texas Utilities Company, Inc. was formed on September 4, 1945, formalizing the historic and traditional bonds connecting TP&L, DP&L and TESCO in a new holding company for the three utilities. TXU is a part of the corporate structure that formed Texas Utilities Company in the 1940s and the family of companies has been known in the industry as Texas Utilities ever since. The term 'Texas Utilities' is synonymous in this state with TXU and its parent companies."

Notably, TXU said that, "Texas Utilities Company, Inc. is still owned by the TXU family of companies today," and provided a Certificate of Fact which, "substantiates that Texas Utilities Company, Inc. is still in existence and registered with the Texas Secretary of State today."

"The name Texas Utilities Exchange is confusingly similar to TXU and to Texas Utilities. TXU submits that there is a significant possibility for customer confusion, in violation of PURA and the Commission's rules, because TXU markets and provides retail electric service to the same types of customers to whom TXUE intends to provide aggregation service," TXU said

"[T]he applicant's requested name will likely lead existing and potential customers of TXU to believe that TXUE is the same as, or affiliated with, TXU and thereby cause substantial customer confusion as to the identity of the company from whom customers are buying aggregation, or even retail electric, services," TXU said

"The applicant is attempting to benefit financially from the reputation and brand recognition of the TXU family of companies," TXU alleged

"Actual intent to confuse consumers is not required in order assert [sic] a valid objection to the applicant's name and the customer confusion it would cause," TXU said [emphasis by TXU]

"TXU posits that full legal names are not used by consumers or typically disclosed by companies when marketing to consumers. Full legal names are commonly shortened to the first name or first two names of a legal entity. For example, TXU Energy Retail Company LLC is commonly shortened to TXU or TXU Energy. Texas Utilities Company Inc. is shortened to Texas Utilities. Similarly, the applicant's full legal name of Texas Utilities Exchange, LLC will be shortened by the market to Texas Utilities regardless of any efforts to the contrary promised by the applicant. Therefore, the application under this name should be denied," TXU said

"Even the applicant's website, which is a marketing tool, evidences the applicant holding itself out to consumers as 'Texas Utilities' (www.texasutilities.exchange). No reasonable consumer thinks that .com, .net, .org or .exchange is a part of the brand or company name," TXU said

"It is difficult to take at face value the assertion that the applicant will only hold itself out to customers in the full legal name indicated when a brief inspection of its website (www.texasutilities.exchange) reveals that the company doesn't include this full legal name ('Texas Utilities Exchange, LLC') anywhere on its website, including legal copy like copyright footers. In addition to the articulated objections to the full legal name, TXU is also concerned about the prospective scope creep to using abbreviated names like 'Texas Utilities' or 'Texas Utilities Exchange' in its marketing to customers," TXU alleged

Prior to the filing of TXU's comments, PUCT Staff had recommended that Texas Utilities Exchange, LLC (TUE) be granted registration as an aggregator, stating, "TUE has met all of the requirements for persons seeking to register as a Class I and Class II.A. aggregator."

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