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Texas Complaint Alleges REP Contracts Longer Than 12 Months Must Be In Writing & Signed By Both Parties
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A complaint has been filed against Discount Power at the Texas PUC which alleges that, under a Texas statute governing contracts, a REP customer agreement which lasts longer than 12 months must be signed by both parties to be valid
The complainant, Craig McClelland, alleges that the complainant became a customer of Discount Power via a
transfer or purchase of their account from their prior retail electric provider, Energy Texas. McClelland filed the complaint as an individual. McClelland's profession appears to be an attorney, based on the domain name for the complainant's contact email as well as the inclusion of a State Bar number accompanying the complainant's signature
The complainant alleges, "I originally signed up with Energy Texas over the phone and signed no contract. Discount Power
alleges that I had a 36-month contract with Energy Texas and, therefore, Discount Power. Yet, I
entered no such contract."
The complainant alleges, "Under Texas Business and Commerce Code section 26.01, an
'an agreement which is not to be performed within one year from the date of making the
agreement' MUST BE '(1) in writing and (2) signed by the person to be charged with the promise
or agreement....' (emphasis added [by complainant]).
"The alleged contract with Energy Texas/Discount Power was to run for 36 months... a time that
is longer than one year. The alleged contract is not able to be fully performed within one year.
As such, Texas Business and Commerce Code Section 26.01(a) applies requiring the 3-year
contract to be (1) in writing and (2) signed by both parties. No such written contract exists, and
no such contract has been signed by either party. Without a binding contract, I, the consumer,
was not bound by any of its alleged terms and was a mere day-to-day service customer," the complainant alleges
As relief, the complainant is specifically seeking non-assessment of a $500 early cancellation fee allegedly sought to be imposed on the complainant by Discount Power
Texas Business and Commerce Code section 26.01 specifically provides:
Sec. 26.01. PROMISE OR AGREEMENT MUST BE IN WRITING.
(a) A promise or agreement described in Subsection (b) of this section is not enforceable unless the promise or agreement, or a memorandum of it, is
(1) in writing; and
(2) signed by the person to be charged with the promise or agreement or by someone lawfully authorized to sign for him.
(b) Subsection (a) of this section applies to:
[...]
(6) an agreement which is not to be performed within one year from the date of making the agreement;
[...]
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April 8, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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