Texas Senate Committee Reports Favorably Bill Subjecting Brokers To PUC Regulation, Registration
Bill Placed On Intent Calendar
March 28, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
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The Texas Senate Business & Commerce Committee has reported favorably a committee substitute for SB 1497, which would subject electricity brokers to regulation by the Texas PUC
The bill has been placed on the April 1 intent calendar
Under the committee substitute (hereafter, "bill"), "brokerage services" is defined as follows:
(1) providing advice or procurement services to, or acting on behalf of, a retail electric customer regarding the selection of a retail electric provider, or a product or service offered by a retail electric provider; or
(2) selling or attempting to sell a product or service offered by a retail electric provider to a retail electric customer.
Under the bill, a person may not provide brokerage services, including brokerage services offered online, in this state for compensation or other consideration unless the person is registered with the PUC as a broker.
Under the bill, a broker may not sell or take title to electric energy.
Under the bill, brokers shall comply with customer protection provisions, disclosure requirements, and marketing guidelines established by the PUC and by statute.
Under the bill, a retail electric provider may not register as a broker.
Under the bill, a retail electric provider may not knowingly provide bids or offers to a person who: (1) provides brokerage services in this state for compensation or other consideration; and (2) has not registered as a broker with the PUC.
The bill provides that the PUC shall adopt rules as necessary to implement the bill.
The bill requires that the PUC shall process a person's application for registration as a broker not later than the 60th day after the date the person files the application.