| (B) identify whether it is currently providing service
to customers in Texas.
(i) Reporting requirements. An Option 1 REP must file
with the commission an annual and a semi-annual report each year.
Option 2 and Option 3 REPs do not have reporting obligations under
this section.
(1) The annual report is due on March 5, or
(A) 65 days after the end of the REP's fiscal year;
or
(B) if the REP elects to maintain an executed version
of the commission approved standard form irrevocable guaranty agreement
as its access to capital requirement under subsection (f)(1)(A) of
this section, then 65 days after the end of the guarantor's fiscal
year.
(2) The semi-annual report is due on August 15, or
(A) 225 days after the end of the REP's fiscal year;
or
(B) if the REP elects to maintain an executed version
of the commission approved standard form irrevocable guaranty agreement
as its access to capital requirement under subsection (f)(1)(A) of
this section, then 225 days after the end of the guarantor's fiscal
year.
(3) The annual and semi-annual report must include
the following information.
(A) A signed, notarized affidavit from an executive
officer affirming that the certificate holder is not in material violation
of any of the requirements of its certificate under this section and
that the information reported in the entire report is true and correct.
(B) Any changes in ownership, control, corporate restructuring,
or transfer of a REP certificate.
(C) Any changes in management, experience, and persons
relied on for certification in subsection (e) of this section including
the person or third-party provider acting as the REP's risk manager.
(D) A list of all principals, provided in Microsoft
Excel format.
(E) A list of all executive officers, provided in Microsoft
Excel format.
(F) A list of all third-party providers and a description
of their responsibilities and delegation of authority, provided in
Microsoft Excel format.
(G) For a REP providing retail electric service in
the ERCOT region, a copy of the REP's current LSE contact information
kept on file with ERCOT, including a copy of each Notice of Change
of Information submitted to ERCOT since the REP's last annual or semi-annual
report was filed. If the REP's designated QSE is the same entity as
the REP or an affiliate of the REP or REP's corporate parent, the
REP must also include a copy of the current QSE and counter party
contact information kept on file with ERCOT, including a copy of all
notices of change of information submitted to ERCOT in the time since
the REP's last annual or semi-annual report was filed.
(H) Demonstration of ongoing compliance with the financial
requirements of subsection (f) of this section.
(i) This can include:
(I) calculations demonstrating a guarantor's adequate
tangible net worth and financial ratios,
(II) proof that a REP maintains adequate shareholders'
equity,
(III) a statement of the value of customer deposits
and prepayments the REP is currently liable for, and
(IV) a current account statement demonstrating that
the balance of the account in which customer deposits and prepayments
are held 100% covers the value of customer deposits and prepayments
the REP is liable for.
(ii) A REP must submit relevant documentation as required
by subsection (f)(4) of this section to demonstrate its ongoing compliance
with the financial requirements of subsection (f)(1) and (2) of this
section.
(iii) Financial statements provided as part of the
annual and semi-annual report must be as of the end of the most recent
fiscal quarter.
(4) In addition to the information required in paragraph
(3) of this subsection, the annual report must also include the following
information.
(A) Any changes in a REP's contact information identified
in subsection (d)(1)(D) of this section.
(B) A list of aggregators with whom the REP has conducted
business in the reporting period, and the commission registration
number for each aggregator.
(C) The information required by §25.491 of this
title (relating to Record Retention and Reporting Requirements) and
other commission rules, as applicable.
(5) Reporting under this subsection does not change
the requirement for a REP to amend its certification to reflect the
change in accordance with subsection (h) of this section.
(j) Protection of TDU financial integrity.
(1) A TDU must not require a deposit from a REP except
to secure the payment of transition charges as provided in §25.108
of this title (relating to Financial Standards for Retail Electric
Providers Regarding Billing and Collection of Transition Charges),
or if the REP has defaulted on one or more payments to the TDU. A
TDU may impose credit conditions on a REP that has defaulted to the
extent specified in its statewide standardized tariff for retail delivery
service and as allowed by commission substantive rules.
(2) A TDU must create a regulatory asset for bad debt
expenses, net of collateral posted under paragraph (1) of this subsection
and bad debt already included in its rates, resulting from a REP's
default on its obligation to pay delivery charges to the TDU. Upon
a review of reasonableness and necessity, a reasonable level of amortization
of such regulatory asset will 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.
(k) Revocation of a REP certificate. A certificate
granted under this section may be revoked for a significant violation
of PURA, commission substantive rules, or protocols adopted by the
applicable independent organization. The revocation of a REP's certificate
requires the cessation of all REP activities in the state of Texas,
in accordance with commission order. The commission may impose an
administrative penalty on a person for a violation of PURA, commission
substantive rules, or protocols adopted by an independent organization.
Significant violations include, but are not limited to:
(1) Providing false or misleading information to the
commission, including a failure to disclose any information required
by this section;
(2) Engaging in fraudulent, unfair, misleading, deceptive,
or anticompetitive practices, or unlawful discrimination;
(3) Switching, or causing to be switched, the REP for
a customer without first obtaining the customer's permission;
(4) Billing an unauthorized charge, or causing an unauthorized
charge to be billed, to a customer's retail electric service bill;
(5) Failure to maintain continuous and reliable electric
service to a customer or customers under this section;
(6) Failure to maintain financial resources in accordance
with subsection (f) of this section;
(7) The inability to meet financial obligations on
a reasonable and timely basis;
(8) Failure to timely remit payment for invoiced charges
to an independent organization;
(9) Failure to observe any applicable scheduling, operating,
planning, reliability, and settlement policies, protocols, guidelines,
procedures, and other protocols established by an applicable independent
organization;
(10) A pattern of not responding to commission inquiries
or customer complaints in a timely fashion;
(11) Suspension or revocation of a registration, certification,
or license by any state or federal authority;
(12) Termination of the REP's SFA with ERCOT or similar
agreements with an applicable independent organization other than
ERCOT;
(13) Conviction of a felony by the certificate holder,
a person controlling the certificate holder, or principal employed
by the certificate holder, or any crime involving fraud, theft, or
deceit related to the certificate holder's service;
(14) Failure to provide retail electric service to
a customer or customers within 24 months of the certificate being
granted by the commission or ceasing to provide retail electric service
for a period of 24 months;
(15) Failure to serve as a POLR if required to do so
by the commission under §25.43 of this title;
(16) Failure to timely remit payment for invoiced charges
to a TDU under §25.214, of this title (relating to Terms and
Conditions of Retail Delivery Service Provided by Investor Owned Transmission
and Distribution Utilities);
(17) Erroneously imposing switch-holds or failing to
remove switch-holds within the timeline described in §25.480
of this title (relating to Bill Payment and Adjustments);
(18) Failure to comply with the terms of a suspension
under subsection (l) of this section;
Cont'd... |
