Texas Retail Provider Appeal ALJ's "Unprecedented" Decision Requiring REPs To Provide Newspaper, Website Notice Of A/S Fixed Price Petition

February 1, 2024

Email This Story
Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com

The REP Coalition has appealed a Texas PUC ALJ's ruling on the notice required to be undertaken by retail electric providers in connection with a petition from ARM and TEAM for the PUC to designate new ERCOT Contingency Reserve Service (ECRS) costs as an, "ancillary service product as incurring charges beyond the REP’s control for a customer’s existing contract"

Such a designation would allow REPs to apply a one-time price adjustment to a fixed rate contract that was executed before the implementation of this new ancillary service

As previously reported, adapting slightly rules for TDU rate case notices, an ALJ ordered, among other things, that REPs publish notice of their petition in a newspaper in each county in which an affected customer resides, and that REPs post notice on their websites

See full details on the requirements under the ALJ's ruling here

The REPs are appealing to the Commission the newspaper and website notice requirements

The REP Coalition said:

"This case does not involve the Public Utility Commission of Texas (Commission) ruling on any retail price for electric service. Even if it did, the additional notice requirements of newspaper publication and individual REP website notice in Order No. 4 [the ALJ's notice order] are not consistent with the existing mechanisms in the Commission’s rules for informing customers of adjustments to fixed price contract prices for changes beyond a retail electric provider’s (REP) control.

"Order No. 4’s expansion of the notice requirement to newspaper publication that is applicable to transmission and distribution utility (TDU) base rate case proceedings is not reasonable to apply in this case.

"Order No. 4 would impose additional website publication requirements on entities that are not parties to this proceeding.

"Order No. 4’s requirements are unprecedented for competitive entities and rate-regulated entities, and are not consistent with the Commission’s rules."

"Order No. 4 effectively treats this proceeding as analogous to a transmission and distribution utility base rate proceeding. No customer charges or rate adjustments, however, will be determined in this proceeding. Whether or not a REP applies a one-time price adjustment to residential and/or small commercial contracts after this designation will vary by REP, and by individual customer contract. In other words, a Commission designation will not automatically result in a price change for all existing customers who entered into a contract before the implementation of ECRS. Further, the retail market is open to customer choice, which means that unlike customers of electric utilities, a customer in an area open to competitive choice is not required to take service from any particular REP. Retail customers served by REPs have the ability to choose both their REP and their electric plan," the REPs said

"Treating this proceeding as analogous to an electric rate case steps well outside the regulatory paradigm applicable to retail electric service. Under PURA, the Commission’s role in the retail electric space is one of customer protection as opposed to rate regulation. Rather than original ratemaking jurisdiction over REP pricing, the Commission has the authority 'to adopt and enforce rules to protect retail customers from fraudulent, unfair, misleading, deceptive, or anticompetitive practices.' The Commission is also charged with developing a process for the timely resolution of disputes between REPs and the retail customers they serve. To perform these functions, the Commission has adopted comprehensive customer protection rules that include a series of requirements regarding how adjustments to fixed price products are implemented and how those price changes are disclosed to customers.11 If an individual customer receives a one-time price adjustment that they believe is inconsistent with their contract for service, they may complain with their REP, and if dissatisfied with the results of the REP’s complaint investigation or supervisory review, they have a right to utilize the Commission’s complaint process," the REPs said

"Notice through Electric Reliability Council of Texas (ERCOT) market notice and Texas Register notice is reasonable," the REPs said

Docket 55959

ADVERTISEMENT

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Customer Care Specialist I & II- remote/hybrid -- Retail Supplier
• NEW! -- Pricing Analyst - Retail Power
• NEW! -- Electricity Pricing Analyst -- Retail Supplier
• Business Development Manager -- Retail Supplier
• Call Center Manager -- Retail Supplier

HOME

Copyright 2010-23 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.