A bill (HB 2563) has been filed with the Texas legislature that would require retail electric providers to verify that a broker, agent, or other entity receiving a commission complied with the Public Utility Commission's consumer protection standards prior to paying a commission.

The bill specifically provides, "A retail electric provider may pay a commission or other form of remuneration to a person for soliciting potential customers on behalf of the retail electric provider or for otherwise representing the provider in a sales capacity only if the retail electric provider finds that the person complied with the commission's customer protection standards in acting on behalf of the retail electric provider."

Generally, as used in the Utilities Code (which HB 2563 would amend), the term "person" includes, "an individual, a partnership of two or more persons having a joint or common interest, a mutual or cooperative association, and a corporation, but does not include an electric cooperative."

The bill also provides that, "A person who receives a payment of a commission or other form of remuneration from a retail electric provider for actions taken by the person to solicit potential customers or to otherwise represent the retail electric provider in a sales capacity is considered an agent of the retail electric provider for purposes of enforcing commission rules regarding customer protection standards."

Furthermore, HB 2563 would require REPs to annually file a report with the PUCT that, "lists the name of each person to whom the provider has paid a commission or other remuneration for customer referral or for sales."

The PUCT shall compile a list of the required reports concerning entities to which a commission was paid, "and make the list available to the public on the commission's Internet website."