“Five star rating from the Public Utility Commission of Texas,” the billboards scream. This summer we’ve seen three retail electricity providers (REPs) bragging on their 5-star rating with the Public Utility Commission of Texas (PUCT), just in the Houston area alone. Are 5-star ratings from the PUCT like 5-star reviews on Google? Not exactly.
In this article we break down what PUCT ratings are, and why we think they don’t matter much in your search for the best electricity provider.
Key Takeaways
- PUCT Ratings reflect complaint volume relative to the size of a provider’s customer base, not customer satisfaction.
- The Complaint Scorecard is graded on a curve, with electricity providers grouped into five equal complaint categories. This means a company may receive 5 stars even if the scoring difference from a 4-star company is minimal.
- PUCT investigates legal compliance, not overall service quality.
- Rather than relying only on PUCT Ratings, use Google reviews, expert recommendations and satisfaction guarantees to choose a provider.
What is the PUCT Consumer Complaint Process?
Consumer complaint resolution is one of the PUCT’s primary roles. Follow these steps to file a consumer complaint with the Texas Public Utility Commission:
- You must contact your electricity provider and let them investigate the issue.
- If you’re unable to come to a satisfactory resolution with your REP, you can file a complaint with the PUCT’s Consumer Protection Division.
- You’ll file an informal complaint on the PUCT’s web site, providing details. You can even upload documentation supporting your case.
- Once you’ve filed a complaint, a PUCT staffer reviews it and the process begins.
- The Consumer Protection Division sends the complaint to your electricity provider, which has 15 days to investigate and respond to the PUCT.
- After receiving the REP’s response, an investigator determines if the company has failed to follow the law.
- Once complete, the PUCT will send you and the company a letter with the investigator’s resolution.
If you disagree with their decision, you can pursue a formal complaint, which will require your attendance at legal proceedings.
What do the PUCT Customer Complaint Statistics Track?
The PUCT categorizes customer complaints in the following categories:
- Slamming – Switching electricity provider without consent
- Cramming – Billing for additional services not agreed to by the consumer
- Billing – General billing errors or bill issuance
- Quality of Service – Service issues including customer support
- Discontinuation of Service – disconnection for non-payment
- Provision of Service – not connecting service as requested by customer.
Keep in mind, the PUCT only considers whether the provider followed the law when deciding the outcome of your complaint. However, they track all complaints, regardless of the outcome or legal validity.
As you can imagine, companies with more customers like Reliant Energy and TXU Energy have a higher volume of complaints than smaller companies like Champion Energy or APG&E.
That’s why the PUCT created their electricity industry score card. The scorecard, with ratings from one to five stars, lets consumers compare compliant statistics regardless of company size.
What Does the PUCT 5-Star Rating System Mean?
The industry scorecard assigns a one through five-star rating based on the number of complaints a REP receives relative to the number of customers they serve.
The PUCT’s five‑star system reflects complaint volume relative to the provider’s customer base, based on a rolling 6‑month average of complaints per 1,000 customers. Providers are grouped into five equal‑sized buckets (i.e. graded on a curve), which means the gap between a 5‑star and a 4‑star provider can be quite slim. It’s purely a regulatory compliance metric, not a measure of customer satisfaction or service quality.
You can find the current PUCT industry scorecard on their website. You’ll also see these star ratings reflected on the PUCT’s Power to Choose Website.
How to Use Reviews & Ratings to Choose Your Electricity Provider
The PUCT ratings and scorecard can tell you whether consumers are happy with a REP and feel like they fulfill their marketing promises. If you read the electricity facts label, avoid signing up through a door to door sales representative, and pay your bill on time? It’s unlikely you’ll ever file a complaint.
Instead, our suggested approach is to use Google reviews, ask trusted friends or look for a company with a satisfaction guarantee. These companies let you switch to a different plan or switch away within the first 30-60 days if you don’t like them, with your early termination fee waived.
You can also check our expert recommendations of best electricity companies in Texas. This is our annual review of companies, their policies, offers and service levels, with category awards like best company for fixed rate plans, best company for free nights & weekends etc. It’s a good starting place for comparison shopping.
Read our step-by-step guide to Texas electricity shopping for more tips!
