Texas Coalition For Affordable Power Underscores Lack Of Bond, Vetting For Texas Broker Registration, Versus Other Choice States

The Texas Coalition for Affordable Power in a social network post contrasted the requirements for registration as a Texas electric broker versus the requirements in most other retail choice states

TCAP noted that electric broker registration in Texas requires no bond and has no registration fee, and with Texas registrations issued within 20 working days, provided that the registration filing was complete

"No test. No experience. No one checking whether the broker calling your office has ever done this before, or if the promises they make are even legal," TCAP said in an infographic

TCAP compared Texas' broker registration process to the applications required in five other choice states: Illinois, Massachusetts, Maryland, New Jersey, and Pennsylvania.

TCAP noted that four of those states require a $10,000 bond, with TCAP stating that Illinois requires a $5,000 bond

TCAP said that the broker application process in Illinois, Massachusetts, Maryland, New Jersey, and Pennsylvania includes a review of the broker's financial statements and (except Illinois) credit report. Illinois, Massachusetts, Maryland, New Jersey, and Pennsylvania require the disclosure of any criminal or bankruptcy history of the broker applicant, TCAP said

TCAP further said that Illinois, Massachusetts, New Jersey, and Pennsylvania require that a broker must disclose its fee structure to the customer

"None of this means every Texas broker is a bad actor. It means the one calling your office may be brand new, financially un-vetted, and under no obligation to tell you how they're being paid," TCAP said

TCAP, which is a registered Texas electric aggregator, invites entities receiving broker proposals to send such broker contracts to TCAP before the entity signs with a broker. TCAP offers to review the broker proposal at no cost

TCAP said that Texas has 1,845 registered brokers and aggregators, with the next highest total (among the five states listed above) listed on TCAP's infographic being Illinois at 644