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Staff of the Public Utility Commission of Texas have filed an updated recommendation that recommends that the PUC deny, with prejudice, Enron Energy Texas LLC’s application for an Option 1 retail electric provider certificate, due to what Staff alleges is “satire” which Staff alleges, when presented alongside legitimate retail electric services, “is misleading and likely to confuse consumers.”

An Enron spokesperson provided the following statement concerning the matter: “We look forward to responding to the PUC staff’s recommendation.”

In Staff’s filing, Enron Energy Texas LLC is referred to, after the initial reference, as “Enron” or “Enron Energy”.

Staff alleged, “Staff cannot recommend approval of Enron Energy’s application. As further detailed below, it is Staff’s position that Enron’s presentation of itself is misleading and that granting the company a REP certification would be inconsistent with consumer protection standards. Accordingly, Staff recommends that the application be denied and that this proceeding be dismissed with prejudice.”

Staff alleged, “Enron’s presentation of itself and its services is misleading and likely to confuse consumers. Although the website provided in Enron’s application is inactive, Staff is aware of a separate website which lists Gregory A. Forero as the company’s Vice President of Energy Services, the same position listed in Enron’s REP application, and Connor Gaydos as the company’s Chief Executive Officer.”

Staff alleged, “In a January interview with the Houston Chronicle, Mr. Forero confirmed that he is working with Mr. Gaydos, co-creator of the satirical ‘Birds Aren’t Real’ conspiracy theory. In that interview, Mr. Forero claimed that Enron is not a parody; however, Mr. Gaydos has staged several events that directly contradict this statement, including a fake town hall at which Enron appeared to present a fifty-thousand dollar check to Houston residents and a satirical quarterly earnings call in which the company’s plans for REP certification in Texas are presented amidst feigned audio issues and visual gags.”

Staff alleged, “Enron’s site also contains references to a seemingly fake at-home nuclear reactor, Enron merchandise, and links to the company’s satirical social media accounts, all alongside a form that allows customers to sign up to receive a notification when the Enron’s energy services are ready for launch. Notably, the site’s Terms of Use state that ‘[t]he information on the website about Enron is First Amendment protected parody, represents performance art, and is for entertainment purposes only.’ Enron’s own website claims that the company is fictitious and fails to differentiate the company’s retail electric services. By attempting to market potentially legitimate retail electric services alongside satire, Enron has made it unnecessarily difficult for Texans to differentiate between real information and humor.”

Staff said, “The consumer protection standards set forth in PURA Chapter 17 recognize that all buyers of retail electric services are entitled to protection from fraudulent, unfair, misleading, deceptive, or anticompetitive practices. The Commission has been granted the authority and the duty to create and enforce rules to protect retail consumers from such practices and to protect customers of electric services consistent with the public interest.”

Staff alleged, “Enron’s presentation of itself and its services is misleading, and the public interest is not served by forcing consumers to meticulously sort fact from fiction when selecting an electric provider. Therefore, granting Enron’s application for a REP certificate would be inconsistent with the Commission’s consumer protection standards. Accordingly, Staff recommends that Enron’s application be denied and that this proceeding be dismissed with prejudice.”