Texas PUC Chair Concerned With "Misleading" Tiered Rates On Power To Choose

Note: The following story was first posted at 11 a.m. on June 28, with an alert to our email subscribers

During today's open meeting, Texas PUC Chairman DeAnn Walker expressed "concerns" with the posting of tiered rate plans on the Power To Choose website, which have low quoted rates at 1,000 kWh but higher rates outside of certain usage conditions

Staff reported that one product which had a quoted 2.3 cents per kWh average at 1,000 kWh actually had a real-word average of 10.8 cents per kWh through the product's term, when using usage based on a standard load profile, as opposed to usage of 1,000 kWh each and every month.

Walker said that such products are, "maybe not deceptive," but they are, "at least misleading". Walker said that the PUC has been receiving more complaints about such tiered plans on Power to Choose

Walker directed Staff to open a review of the transparency of offers on Power To Choose

Walker said that she has talked with Staff about pulling some of such offers off of Power to Choose, especially as the Commission has been encouraging customers to go to Power to Choose to get on fixed rates, but was concerned with such action as it currently stands

Walker encouraged REPs to re-examine the transparency of what they are posting

Commissioner Arthur D'Andrea agreed with such concerns, stating that the offering of such a low quoted rate, "doesn't reflect any economic reality," unless a REP is just trying to game the website. D'Andrea said such behavior is understandable and rational, "but it deceives consumers"

Staff indicated that they could move fast on the issue, as D'Andrea hoped the issue could be addressed this summer while people are shopping