PUCT Seeks Briefing on Threshold Legal Issues on AEP Mass Market REP Application

The PUCT has sought briefing on several threshold legal issues concerning the application of AEP Texas Commercial & Industrial Retail Limited Partnership to serve customers under 1 MW as a retail electric provider (39509).

As only reported by Matters, the use of the AEP name by a mass market REP has been opposed by other retail electric providers (see 7/26), and the case has been referred to SOAH.

The Commission requested briefing on the following:

- Does PURA Sec. 39.157(d) and PUCT Subst. R. 25.272(h) have an applicability to an affiliated REP?

- If so, does PURA 39.157(d)(5)(B) and Subst. R. 25.272(h) preclude the Commission from determining under Subst. R. 25.107(e)(1)(B) whether a REP's use of the same corporate name, trademark, brand, or logo as that of its affiliate TDU is deceptive, misleading, vague, or otherwise contrary to Subst. R. 25.272?

PURA 39.157(d)(5)(B) provides that the PUCT shall develop rules to ensure that a utility does not, "allow a competitive affiliate, before September 1, 2005, to use the utility's corporate name, trademark, brand, or logo unless the competitive affiliate includes on employee business cards and in its advertisements of specific services to existing or potential residential or small commercial customers locating within the utility's certificated service area a disclaimer that states, '(Name of competitive affiliate) is not the same company as (name of utility) and is not regulated by the Public Utility Commission of Texas, and you do not have to buy (name of competitive affiliate)'s products to continue to receive quality regulated services from (name of utility).'"

AEP Texas Commercial & Industrial Retail Limited Partnership has sought a dispositive ruling that this provision allows it to use "AEP" as part of is trade names as a retail electric provider (see 8/8)

Briefs are due August 30. The threshold legal issue is scheduled to be addressed at the PUCT's September 15 open meeting.