Texas Commission Requests Comments in First Step in Reviewing Utility-Competitive Affiliate Rules, Restrictions

The Public Utility Commission of Texas has commenced a project (41616) reviewing rules governing utilities and their affiliates by seeking comments on several questions and existing rule provisions.

The project, which serves as a forum for a generic rulemaking on the question of competitive affiliates, was prompted by several recent cases regarding the shared corporate brand between a distribution utility and an affiliate active in the retail market, whether as a REP or broker (see prior story).

Among other things, the Commission asks whether the definition of "competitive affiliate" contained in Subst. R. §25.272(c)(2) is appropriate in light of the types of competitive affiliates that actually exist in today's market.

How should the definition of "competitive affiliate" be revised or clarified to be consistent with the existing definition in PURA §39.157(i)(1) and to accomplish the broader goals of PURA §39.157 to avoid potential market power abuses and cross-subsidization between regulated and competitive activities, the Commission asks.

The Commission also asked whether current Subst. R. §25.272(h)(2), relating to prohibitions on joint marketing, advertising, and promotional activities, adequately addresses, "new types of technology, branding, and business practices developed subsequent to the adoption of the rule in 1999?"

Should §25.272(h)(2)(B) be revised to further define or describe activities that "favor" an affiliate, the Commission asks.

Should §25.272(h)(2)(B)(vi) be revised to limit the circumstances under which links from the website of a utility to the website of a competitive affiliate would be permitted, the Commission asks.