POLRized in Texas: A Duty Unresolved

The Texas method for assigning provider of last resort draws criticism from market players and consumer advocates.

Texas, like every other jurisdiction that has instituted choice, has had to confront the methods, obligations, and responsibility associated with the assignment of a provider of last resort (POLR). In other words, what do regulators and market participants do about customers who choose not to choose, customers whose competitive provider goes out of business, and customers who are not paying their bills?

Texas chose a different path to the POLR assignment, but is currently revisiting some of those choices because of various degrees of dissatisfaction with the original decisions. For example, when queried about what she liked about the current POLR rules, Barbara Alexander, a consumers affairs expert who provided testimony on behalf of Texas Legal Services, replied, "Nothing." But we get ahead of the story. To understand Texas POLR, one must understand the basics of the Texas market structure.