Texas Bill Aims to Safeguard Texas Electric Customers Served by Sales Agents

Texas Bill Aims to Safeguard Texas Electric Customers Served by Sales Agents

March 9, 2015

by Denise Stokes; Copyright 2015 by Competitive Assets, LLC.  All rights reserved

On 3/6/15 Texas Representative Hubert Vo filed HB 2563 relating to persons who solicit customers on behalf of a retail electric provider; adding provisions subject to criminal penalty.  The bill would require that Retail Electric Providers (REPs) verify that a person soliciting potential customers on behalf of the REP have complied with the PUCT’s customer protection standards.  REPs must make this verification before paying such person, and the bill further clarifies that such person is an agent of the REP.  This bill could help plug a gap in current customer protection rules of the PUCT.  While at this time one interpretation of the PUCT’s rules would construe such persons as agents of the REP, in practice, there are persons who attempt to avoid such responsibility by calling themselves brokers or consultants, and not registering as aggregators. 

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