Texas Broker "Urges" PUC To Require Brokers To Procure Bonds, Maintain Minimum Accounts As Part Of Registration

Marketing Systems Group, LLC ("MSG"), a registered broker in Texas, filed comments with the Public Utility Commission of Texas urging the Commission to include a bonding or similar requirement under the proposed electric broker registration rules

EnergyChoiceMatters.com was first to report (story here) the strawman electric broker regulations filed by PUC Staff, which includes, among other things, a proposal for brokers to disclosure their compensation to customers (see prior story for details)

As part of its comments to the Texas PUC, Marketing Systems Group said, "Although the Commission did not specify this directly in the proposed changes, we would urge the Commission to require brokers to procure bonds or maintain minimum accounts as part of the registration process under §25.112 (b) (10)."

Marketing Systems Group also raised concern with the strawman's proposal requiring the disclosure of compensation to brokers

"[W]e would like to express out concern regarding §25.486 (d) (5), which states brokers must disclose to clients how brokers will be compensated for providing brokerage services including the method of calculation for the compensation. We regard this information as highly confidential, specifically how we calculate our fees. Furthermore, it is not industry standard to disclose this information," Marketing Systems Group said in its comments

A reminder that under Staff's original filing of the strawman, Staff requested that interested persons submit written comments on the strawman by September 30, 2019.

Project 49794