(B) For a REP that has obtained a current list from
the LILA that identifies low-income customers, the Executive Director
or the staff designee will distribute available proceeds pursuant
to §25.107(f)(6) of this title to the VREPs proportionate to
the number of customers they received in the mass transition, who
at the time of the mass transition were identified as low-income customers
by the current LILA list, up to the reasonable deposit amount set
by the Executive Director or staff designee. If funds remain available
after distribution to the VREPs, the remaining funds must be distributed
to the appropriate LSPs by dividing the amount remaining by the number
of low income customers as identified in the LILA list that are allocated
to LSPs, up to the reasonable deposit amount set by the Executive
Director or staff designee.
(C) If the funds distributed in accordance with §25.107(f)(6)
of this title do not equal the reasonable deposit amount determined,
the VREP and LSP may request from the customer payment of the difference
between the reasonable deposit amount and the amount distributed.
Such difference must be collected in accordance with §25.478(e)(3)
of this title (relating to Credit Requirements and Deposits).
(D) Notwithstanding §25.478(d) of this title,
90 days after the transition date, the VREP or LSP may request payment
of an amount that results in the total deposit held being equal to
what the VREP or LSP would otherwise have charged a customer in the
same customer class and service area in accordance with §25.478(e)
of this title, at the time of the transition.
(10) On the occurrence of one or more of the following
events, ERCOT must initiate a mass transition to POLR providers, of
all of the customers served by a REP:
(A) Termination of the Load Serving Entity (LSE) or
Qualified Scheduling Entity (QSE) Agreement for a REP with ERCOT;
(B) Issuance of a commission order recognizing that
a REP is in default under the TDU Tariff for Retail Delivery Service;
(C) Issuance of a commission order de-certifying a
REP;
(D) Issuance of a commission order requiring a mass
transition to POLR providers;
(E) Issuance of a judicial order requiring a mass transition
to POLR providers; and
(F) At the request of a REP, for the mass transition
of all of that REP's customers.
(11) A REP must not use the mass transition process
in this section as a means to cease providing service to some customers,
while retaining other customers. A REP's improper use of the mass
transition process may lead to de-certification of the REP.
(12) ERCOT may provide procedures for the mass transition
process, consistent with this section.
(13) A mass transition under this section must not
override or supersede a switch request made by a customer to switch
an ESI ID to a new REP of choice, if the request was made before a
mass transition is initiated. If a switch request has been made but
is scheduled for any date after the next available switch date, the
switch must be made on the next available switch date.
(14) ERCOT must identify customers who are mass transitioned
for a period of 60 calendar days. The identification must terminate
at the first completed switch or at the end of the 60-day period,
whichever is first. If necessary, ERCOT system changes or new transactions
must be implemented no later than 14 months from the effective date
of this section to communicate that a customer was acquired in a mass
transition and is not charged the out-of-cycle meter read pursuant
to paragraph (16) of this subsection.
(15) In the event of a transition to a POLR provider
or away from a POLR provider to a REP of choice, the switch notification
notice detailed in §25.474(l) of this title (relating to Selection
of Retail Electric Provider) is not required.
(16) In a mass transition event, the ERCOT initiated
transactions must request an out-of-cycle meter read for the associated
ESI IDs for a date two calendar days after the calendar date ERCOT
initiates such transactions to the TDU. If an ESI ID does not have
the capability to be read in a fashion other than a physical meter
read, the out-of-cycle meter read may be estimated. An estimated meter
read for the purpose of a mass transition to a POLR provider must
not be considered a break in a series of consecutive months of estimates,
but must not be considered a month in a series of consecutive estimates
performed by the TDU. A TDU must create a regulatory asset for the
TDU fees associated with a mass transition of customers to a POLR
provider pursuant to this subsection. Upon review of reasonableness
and necessity, a reasonable level of amortization of such regulatory
asset must be included as a recoverable cost in the TDU's rates in
its next rate case or such other rate recovery proceeding as deemed
necessary. The TDU must not bill as a discretionary charge, the costs
included in this regulatory asset, which must consist of the following:
(A) fees for out-of-cycle meter reads associated with
the mass transition of customers to a POLR provider; and
(B) fees for the first out-of-cycle meter read provided
to a customer who transfers away from a POLR provider, when the out-of-cycle
meter read is performed within 60 calendar days of the date of the
mass transition and the customer is identified as a transitioned customer.
(17) In the event the TDU estimates a meter read for
the purpose of a mass transition, the TDU must perform a true-up evaluation
of each ESI ID after an actual meter reading is obtained. Within 10
days after the actual meter reading is obtained, the TDU must calculate
the actual average kWh usage per day for the time period from the
most previous actual meter reading occurring prior to the estimate
for the purpose of a mass transition to the most current actual meter
reading occurring after the estimate for the purpose of mass transition.
If the average daily estimated usage sent to the exiting REP is more
than 50% greater than or less than the average actual kWh usage per
day, the TDU must promptly cancel and re-bill both the exiting REP
and the POLR using the average actually daily usage.
(q) Termination of POLR service provider status.
(1) The commission may revoke a REP's POLR status after
notice and opportunity for hearing:
(A) If the POLR provider fails to maintain REP certification;
(B) If the POLR provider fails to provide service in
a manner consistent with this section;
(C) The POLR provider fails to maintain appropriate
financial qualifications; or
(D) For other good cause.
(2) If an LSP defaults or has its status revoked before
the end of its term, after a review of the eligibility criteria, the
commission staff designee will, as soon as practicable, designate
the next eligible REP, if any, as an LSP, based on the criteria in
subsection (j) of this section.
(3) At the end of the POLR service term, the outgoing
LSP must continue to serve customers who have not selected another
REP.
(r) Electric cooperative delegation of authority. An
electric cooperative that has adopted customer choice may select to
delegate to the commission its authority to select POLR providers
under PURA §41.053(c) in its certificated service area in accordance
with this section. After notice and opportunity for comment, the commission
will, at its option, accept or reject such delegation of authority.
If the commission accepts the delegation of authority, the following
conditions apply:
(1) The board of directors must provide the commission
with a copy of a board resolution authorizing such delegation of authority;
(2) The delegation of authority must be made at least
30 calendar days prior to the time the commission issues a publication
of notice of eligibility;
(3) The delegation of authority must be for a minimum
period corresponding to the period for which the solicitation must
be made;
(4) The electric cooperative wishing to delegate its
authority to designate a continuous provider must also provide the
commission with the authority to apply the selection criteria and
procedures described in this section in selecting the POLR providers
within the electric cooperative's certificated service area; and
(5) If there are no competitive REPs offering service
in the electric cooperative certificated area, the commission must
automatically reject the delegation of authority.
(s) Reporting requirements. Each LSP that serves customers
under a rate prescribed by subsection (m)(2) of this section must
file the following information with the commission on a quarterly
basis beginning January of each year in a project established by the
commission for the receipt of such information. Each quarterly report
must be filed within 30 calendar days of the end of the quarter.
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