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PUCT Signals Broad Jurisdiction Over REP Complaints

Category: Texas

At last month’s January 15 open meeting, the Public Utility Commission of Texas addressed a jurisdictional issue that has meaningful implications for retail electric providers: whether a formal customer complaint requires an ongoing customer relationship or an ongoing violation in order for the Commission to hear the case.

The Commissioners’ answer was unequivocal—it does not.

Commissioners agreed that a formal complaint against a REP may proceed even if the complainant is no longer a customer and even if the alleged conduct has already ceased. In doing so, the Commission rejected argu-ments that a complaint must present a “live controversy” in order to fall within the PUC’s jurisdiction.

The discussion arose from a specific complaint against Express Energy, but the Commission made clear that its conclusions apply more broadly to the complaint process as a whole. Commissioners largely aligned with the views previously outlined in memoranda from Chair Thomas Gleeson and Commissioner Courtney Hjaltman, both of whom had recommended denying an appeal of an ALJ order refusing to dismiss the complaint.

In that case, the REP had moved to dismiss on the grounds that the customer had switched to another provider, arguing that the relief sought—offering a deferred payment plan—was no longer available and that the matter therefore presented no live controversy. The ALJ rejected that argument, and the Commission agreed.

Commissioners emphasized that the PUC’s role is regulatory, not judicial. Unlike courts, the Commission is not bound by constitutional “case or controversy” requirements. Instead, it has statutory authority to examine alleged violations of Commission rules and applicable law governing REP conduct, even when the customer relationship has ended.

Overall, the Commission’s position underscores that the formal complaint process is not limited to resolving active customer disputes. It also serves a broader regulatory function: reviewing past REP conduct, enforcing compliance, and setting precedents for the competitive retail market.