| (C) ERCOT terminates a REP's SFA or the applicable
independent organization terminates a similar agreement and the REP's
financial resource expires in 30 days less; or
(D) The commission's executive director determines
that a REP has failed to satisfy its financial obligations under PURA,
the commission's substantive rules, or the applicable independent
organization's protocols; and the financial resource expires in 30
days or less.
(6) Proceeds from financial instruments.
(A) Proceeds from an irrevocable stand-by letter of
credit or irrevocable guaranty agreement provided under this subsection
may be used to satisfy the following obligations of a REP, in the
following order of priority:
(i) first, if available, to assist in the payment of
residential customer deposits to retail electric providers that volunteer
to provide service in a mass transition event under §25.43 of
this title of low-income customers as identified by the Low-Income
List Administrator under §25.45 of this title (relating to Low-Income
List Administrator);
(ii) second, if available, to assist in the payment
of residential customer deposits to retail electric providers that
are designated to provide service in a mass transition event under §25.43
of this title of low-income customers as identified by the Low-Income
List Administrator under §25.45 of this title;
(iii) third, if available, to assist in the payment
of residential customer deposits to retail electric providers that
volunteer to provider service in a mass transition event under §25.43
of this title, and to retail electric providers that are designated
to provide service in a mass transition event under §25.43 of
this title;
(iv) fourth, for services provided by the independent
organization related to serving customer load;
(v) fifth, for services provided by a TDU; and
(vi) sixth, for administrative penalties assessed under
Chapter 15 of PURA or commission rules.
(B) Proceeds from an irrevocable stand-by letter of
credit or irrevocable guaranty agreement provided under this subsection
must, to the extent that the proceeds are not needed to satisfy an
obligation set out in subparagraph (A) of this paragraph, be paid
to the applicable entity identified as the Applicant on the irrevocable
stand-by letter of credit or the Guarantor on the irrevocable guaranty
agreement.
(g) Persons prohibited from exercising control. An
Option 1 REP must maintain compliance with this subsection at all
times. This subsection does not apply to an Option 2 or Option 3 REP.
(1) In no instance may any of the following persons
control the REP or be relied upon to meet the requirements of subsections
(d) and (e) of this section:
(A) A person who was a principal of a market participant,
at any time within the six months prior to the market participant:
(i) experiencing a mass transition of the REP's customers
under §25.43 of this title;
(ii) having their ERCOT SFA, or similar agreement for
an independent organization other than ERCOT terminated; or
(iii) exiting an electricity or gas market with outstanding
payment obligations that, at the time of the application or amendment,
remain outstanding; or
(B) A person who, by commission order, is prohibited
from serving as a principal for any commission-regulated entity.
(2) If an independent organization or TDU is aware
that a person who is otherwise barred from exercising direct or indirect
control over a REP is acting in violation of this section or other
commission substantive rules, the independent organization or TDU
has an affirmative duty to report this information to the division
of the commission charged with enforcement of the commission's substantive
rules.
(h) Update or relinquishment of certification. A REP
must maintain and update the information required by subsections (d),
(e), and (f) of this section, as applicable, on an ongoing basis.
(1) A REP must electronically submit updated information
in the manner established by the commission within five working days
of any change to its contact information as identified in subsection
(d)(1)(D) or this section.
(2) A REP must apply to amend its certification within
ten working days from the occurrence of a material change to its certification.
A REP may apply for the commission to approve a material change by
filing an application to amend its certification before the material
change is anticipated to occur. A material change includes:
(A) a change in control of the REP including a change
in the controlling owner, a corporate restructuring that involves
the REP, a transfer of a REP certificate, or a change in the persons
that have a minimum of ten percent ownership of the REP or a controlling
parent of the REP, but not including a change in the ownership percentages
of individual owners;
(B) a name change (including addition or deletion of
assumed names);
(C) for Option 1 REPs, a change in service area;
(D) for Option 1 REPs, a change in technical or managerial
qualifications, including
(i) any information previously provided or attested
to under the technical and managerial requirements of subsection (e)(1)(A)
and (B) of this section that correspond with the documentation requirements
under subsection (e)(2)(B) and (C), and (E)(iv) and (v) of this section.
Such information includes:
(ii) personnel relied upon for experience, and
(iii) changes, termination, or expiration of a contract
to provide commodity risk management services;
(iv) a change in identification of any of the applicant's
principals, executive officers, employees, and third-party providers
that meet the criteria under subsection (e)(2)(E)(iv)(I) of this section,
or a change in the applicant's relationship with such persons under
subsection(e)(2)(E)(iv)(II) of this section, if such a relationship
exists; and
(v) a change necessitating an updated statement affirming
that the persons identified under subsection (g)(1) of this section
do not control the REP and are not relied upon to meet the requirements
of subsection (e)(1)(A) and (B) of this section; and
(E) for Option 1 REPs, a change in financial qualifications,
including:
(i) the REP's certificated method for maintaining its
access to capital requirement of subsection (f)(1) of this section,
including terminations made to the irrevocable guaranty agreement
or power purchase agreement;
(ii) the certificated method for protecting its customer
deposits and prepayments, and
(iii) the approved account for protecting customer
deposits and prepayments;
(F) a change in REP's type of certification as an Option
1, Option 2, or Option 3 REP; and
(G) for Option 2 REPs, the addition or removal of customers
served by the Option 2 REP.
(3) A REP that no longer serves customers may relinquish
its REP certificate by filing an application for relinquishment on
a form prescribed by the commission. A REP that does not serve customers
for two consecutive years must relinquish its certificate. Prior to
relinquishing its certificate, the REP must no longer serve any customers.
At least 45 days prior to ceasing operations, a REP that intends to
cease operations as a REP and is not seeking to relinquish its REP
certificate must file a notice in the commission control number established
under this paragraph to notify the commission of a REP ceasing operations.
A REP must not cease operations as a REP without prior notice of at
least 45 days to each of the REP's customers to whom the REP is providing
service on the planned date of cessation of operations. The REP must
also notify, the Low Income Discount Administrator, the applicable
independent organization, and all TDUs and the providers of last resort
for service territories in which the REP serves customers. As applicable,
a REP must also notify all electric cooperatives and municipally owned
utilities in whose service territory the REP serves customers. If
a REP improperly transfers customers without providing adequate notice,
under §25.493 of this title (relating to Acquisition and Transfer
of Customers from One Retail Electric Provider to Another) then the
REP may be subject to enforcement proceedings even after relinquishment
of its certificate. Within the application to relinquish its certificate
a REP must include a statement explaining whether customers' deposits
were refunded to the customers or transferred to an alternative REP.
The statement must be supported by a signed, notarized affidavit from
an executive officer of the REP.
(4) A REP that applies to amend its certification must:
(A) state the effective date of each material change
that prompted the amendment application; and
Cont'd... |
