Groups Ask Texas Commission to Require Re-certification of Retail Electric Providers Every Two Years

The Public Utility Commission of Texas should require retail electric providers to be re-certified by the Commission every two years, Texas Legal Services Center and Texas Ratepayers' Organization to Save Energy proposed in a rulemaking concerning REP certification rules (Subst. R. 25.107).

"TLSC and Texas ROSE urge the commission to establish expiration dates for REP certifications and to establish procedures for periodic REP re-certification. REP re-certification would review a REP's business practices on a regular basis to ensure a REP possesses adequate financial and technical resources and adheres to customer protection standards. Other states such as Ohio utilize a re-certification process," TLSC and Texas ROSE said.

TLSC and Texas ROSE specifically proposed that the Commission require REPs to be re-certified every two years to ensure continuing compliance with marketplace rules and standards for customer protection.

TLSC and Texas ROSE also requested that a REP's certification and continued certification be conditioned upon the REP not violating Texas and federal laws relating to the REP's marketing to, contracting with, providing services to, selling to, billing to and collection actions against its customers.

Although TLSC and Texas ROSE said that violation of Texas and federal laws should be grounds for certificate revocation under current rule, the groups noted that, "arguments have been raised that unless a PUC rule incorporates violations of Texas and federal laws into the commission rules, the commission cannot bring enforcement actions for those violations."

"For instance, Texas law prohibit sellers from charging more than $30.00 for a returned check; yet, research on the Texas retail electric market found that some REPs were charging in excess of the state cap for returned checks. Even though this violation of state law constituted a deceptive trade practice, and was contrary to the Legislative directive to the commission to ensure retail electric service consumers were provided 'reasonably priced electricity' by the REPs, arguments were raised that the PUC could not enforce this violation because it was not set out in the commission's rules," TLSC and Texas ROSE said

Docket 41615