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Texas PUC Staff Propose Final Rule To Eliminate Formal Complaint Process Currently Available To Customers Of Retail Electric Providers
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Staff of the Texas PUC have filed a draft proposal for adoption which would eliminate the current ability for customers of retail electric providers to file at the Texas PUC formal complaints against retail electric providers, in the form of a contested case docketed at the Texas PUC
As part of implementing a streamlined complaint process, customer complaints at the PUC against REPs would still begin with a process, similar to the current "informal" process, under which the PUC's Office of Consumer Assistance (OCA, formerly the Consumer Protection Division) would investigate an individual’s complaint to evaluate whether a possible violation of Commission rule has taken place. OCA would assist the parties in coming to an informal resolution
"At the conclusion of the complaint resolution process, the OCA will provide the complainant and the regulated entity with a closing letter with a summary of the complaint, any known remedial actions that were taken, and an assessment of whether the available documentation suggests the regulated entity may have committed any violations of commission rules," a draft preamble states
"Critically, this is not a formal legal decision made by the commission," a draft preamble states
"At the conclusion of the informal complaint process, if a complainant is not satisfied with the outcome of the process, they are then free to pursue an action in a court of proper jurisdiction," a draft preamble states, rather the complainant having the ability to file a formal, docketed complaint at the PUC as is the case currently
Essentially, the draft final rule would make a process similar to the current informal complaint process the only PUC complaint process available to REP customers, with customers still seeking remedies after conclusion of the new PUC process now directed to court, rather than a formal PUC complaint process
Further, the draft states that if OCA identifies a possible violation during its investigation, OCA will refer the complaint to the PUC's Division of Compliance and Enforcement (DICE) for evaluation
The draft preamble notes that, "DICE may ... identify additional violations or seek beneficial outcomes for an entire customer base."
"For example, an individual ratepayer may file a formal complaint to seek a refund for a particular billing error; a DICE investigation into that service provider might uncover dozens or hundreds of consumers that experienced that same error and that the billing documents themselves do not comply with commission rules. Further, DICE can monitor compliance over time and seek escalating penalties for recurring violations," the draft preamble states
The draft preamble notes that, "Under the new rule, the coordination of efforts between the two divisions will increase by establishing a more direct pipeline to DICE for complaints involving potential violations identified by the OCA and, if appropriate, an increased cadence of DICE’s periodic review of the complaint database".
The draft preamble said that the existing formal complaint process, which requires complainants to engage in formal legal proceedings with counsel (or pro se), "has resulted in protracted and resource intensive contested cases, often involving claims requesting relief the commission is incapable of granting, minor disputes relative to the arduousness of the process, and delayed judicial or enforcement action."
"Under the adopted rules, the commission anticipates the enforcement-driven approach will achieve better, more efficient results for a greater number of consumers, especially those without the resources to obtain legal counsel to litigate a formal complaint," the draft states
The draft further states, "The commission appreciates the concerns related to the ability of individual complainants to bring their own cases in front of the commission. However, the commission expects the amended process to produce significantly better results for consumers and to be significantly more user friendly. Under the current process, potential complainants often express frustration over having to bring their own formal case at the conclusion of an informal complaint in which OCA identifies a possible violation that the regulated entity does not agree to remedy. The time and resources required to litigate a formal complaint is a significant barrier to doing so. By increasing DICE’s role in the review of potential rule violations identified during the complaint process, experienced enforcement attorneys can act, not only on behalf of the individual customer, but on behalf of all similarly situated customers. Under the current process, enforcement actions are sometimes delayed until after the outcome of an ongoing formal complaint. The adopted rules eliminate that delay. Further, the elimination of the formal complaint process enables an individual complainant who is interested in pursuing legal action in a court of proper jurisdiction to do so sooner."
As first reported by ECM (full details here), during the proceeding retail electric provider NEC Co-op Energy had requested "consideration" regarding the reporting of complaints against retail electric providers for circumstances when an investigation determines that the REP fully complied with all applicable PUCT Substantive Rules and no violation occurred.
NEC Co-op Energy had said, "While we fully support a member's right to file a complaint and appreciate the role of the PUCT in reviewing concerns, we believe that reporting complaints that are ultimately found to be without merit can inadvertently impact a provider's reputation and the goodwill it has worked hard to build within the communities it serves."
The draft proposal for adoption would decline to modify how complaints are reported by the Commission as requested by NEC Co-op Energy.
The draft proposal for adoption would also decline to modify current provisions in PUC rules which prohibit requiring that residential and small commercial customers must agree to alternative dispute resolution as part of a terms of service document.
"These rule provisions were initially adopted as important customer protections that were not noticed for amendment in this project. Even if, as the Texas REP Coalition contends, the rule is inconsistent with federal law, the possible amendments to address the inconsistency require public scrutiny prior to adoption," the draft states
The draft would also not require a customer to participate in a REP’s complaint process prior to being allowed to file a complaint with the PUC.
Project 59557
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September 15, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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