Texas REPs Say Customer Data Proposal from Demand Response Providers Would Compel REPs to Act as "Middleman" for Third Parties

A proposal from demand response providers regarding access to Texas electric customers' account information would compel REPs, "to act as the middleman between the electric utility and any third party for the purpose of allowing the third party access to the customer's proprietary information," a group of REPs said in opposition to the proposal.

Several demand response providers had proposed to amend the customer authorization rules to provide that a third party is allowed to directly obtain verifiable authorization from the customer to require the customer's REP to release the proprietary information to the third party pursuant to such consent. Such an amendment would expand the scope of the rule to allow third parties to directly obtain customer authorization from the customer and then to directly obtain the customer's information from the REP.

This proposed amendment, "places an unreasonable burden on REPs in the release of proprietary customer information to third parties," the REPs said.

"P.U.C. SUBST. R. 25.472(b) currently requires the REP to initiate the process for obtaining verifiable authorization to disclose such information to a third party. Presumably, the REP undertakes this action to facilitate an agreement or relationship with the third party to which the information is being released. The DR Coalition's proposal, however, would require the REP to undertake such action regardless of whether the REP has an agreement or relationship with the third party. In other words, proposed new P.U.C. SUBST. R. 25.472(c) mandates that the REP expend its time and resources to act as the middleman between the electric utility and any third party for the purpose of allowing the third party access to the customer's proprietary information," the REPs said.

"The REP Coalition notes that processes and procedures to allow customers to authorize third-parties to have access to their information via the Smart Meter Texas ('SMT') portal are currently under development ... Given this avenue for third-party access to proprietary customer information, REPs should not be required to unnecessarily expend additional resources to facilitate the DR Coalition's proposal," the REPs said.

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