| (19) Failure to comply with §25.272 of this title
(relating to Code of Conduct for Electric Utilities and Their Affiliates);
and
(20) Other significant violations or a pattern of failures
to meet the requirements of PURA, commissions rules or orders, or
protocols adopted by the applicable independent organization.
(l) Suspension of a REP's ability to acquire new customers.
The commission may suspend a REP's ability to acquire new customers
for a significant violation, as described by subsection (k) of this
section. A suspension of a REP's ability to acquire new customers
may be limited to specific customer classes. The suspension order
may also impose administrative penalties or other conditions for reinstatement
on a REP whose ability to acquire new customers has been suspended.
(1) Commission staff may initiate a proceeding for
suspension of a REP's ability to acquire new customers under this
subsection by filing a petition for suspension.
(A) Commission staff must provide reasonable notice
of a petition for suspension to the affected REP in accordance with §22.54
of this title (relating to Notice to Be Provided by the Commission).
(B) The REP may submit a request for hearing on the
petition for suspension within 20 days after the date the REP receives
notice of the petition. Notice is deemed to have been received upon
the earlier of receipt of actual notice or three days after the order
is mailed. A request for hearing received more than 20 days after
the date the petition is received by the REP will be denied by the
presiding officer.
(C) If the REP does not submit a request for hearing
within 20 days after receiving notice of the petition for suspension,
the presiding officer may administratively approve the petition for
suspension under §22.35 of this title (relating to Informal Disposition).
The commission delegates authority to the presiding officer to approve
a petition for suspension under this subsection with a notice of approval
in accordance with §22.35(b)(1) of this title.
(2) The executive director may suspend a REP's ability
to acquire new customers without prior notice or opportunity for a
hearing in the form of a cease and desist order if the executive director
determines that providing notice and an opportunity for a hearing
is impracticable and that the conduct of the REP meets the criteria
for issuing such an order under PURA §15.104(a)(2). In determining
the practicability of providing notice and an opportunity for hearing,
the executive director may consider, among other relevant factors,
whether immediate action is necessary to ensure the REP is able to
provide continuous and reliable service to its current or potential
customers, reduce the risk of the REP exposing its current or potential
customers to a mass transition event, or otherwise ensure the REP
is able to meet its financial obligations. For purposes of determining
whether the criteria of PURA §15.104(a)(2) are met, the statutory
term continuous and adequate electric service includes continuous
and reliable electric service as defined in this section. If the executive
director issues a cease and desist order suspending a REP's ability
to acquire new customers without prior notice or opportunity for a
hearing, the procedural provisions of §25.54(d)(2) of this title
(relating to Cease and Desist Orders) apply.
(3) In addition to any other applicable requirements,
an order suspending a REP's ability to acquire new customers must
describe the conduct of the of the REP and the significant violations
that support the issuance of the order. The order must also describe
any conditions the REP must meet for reinstatement.
(4) If appropriate, an order suspending a REP's ability
to acquire new customers may also include specific, verifiable conditions
for expedited reinstatement. The conditions for expedited reinstatement
may require actions beyond those required to come into compliance
with applicable law and may include verification from commission staff
that the conditions for expedited reinstatement have been met, verification
that commission staff has not identified any reasons the suspension
should remain in effect, or a deadline for meeting one or more of
the conditions. Expedited reinstatement is not appropriate if the
basis for the suspension cannot be redressed by the fulfillment of
specific, predetermined remedial actions, if the pattern of conduct
giving rise to the suspension supports a general concern about the
REP's ability to comply with applicable law or provide customers with
continuous and reliable service, or if there is evidence that may
support additional grounds for suspension. If appropriate, a compliance
docket will be opened for filings relevant to this paragraph. If the
REP fulfills the conditions for expedited reinstatement and files
all required supporting documentation, commission staff must lift
the suspension, notify ERCOT of the reinstatement, and file a notice
of reinstatement as soon as practicable. If commission staff verification
is required and commission staff does not agree that expedited reinstatement
is appropriate under the terms of the suspension order, the REP may
seek reinstatement under paragraph (6) of this subsection.
(5) A REP that has its ability to acquire new customers
suspended must cease, within three working days, the solicitation
or enrollment of new customers and the applicable independent organization
will be directed to report to commission staff, on a weekly basis,
any new customers that have been added by the REP. In this subparagraph,
the term "enrollment" means the act of executing a contract with an
applicant for the provision of electric service but does not include
renewing the contract of an existing customer.
(6) A REP may request reinstatement by filing a petition
for reinstatement. The commission delegates authority to the presiding
officer to approve a petition for reinstatement under this subsection
with a notice of approval in accordance with §22.35(b)(1) of
this title. In determining whether to lift the suspension, the presiding
officer may consider, as appropriate, whether:
(A) the REP has resolved all violations underlying
the suspension and fulfilled all conditions for reinstatement;
(B) the REP is in compliance with all or specific individual
technical, managerial, and financial requirements in this section;
and
(C) there exist any additional grounds that would support
the suspension of the REPs ability to acquire new customers under
this subsection.
(7) A REP subject to suspension of acquiring new customers
under this section must continue to serve existing customers and maintain
compliance with PURA, commission substantive rules, and protocols
adopted by the applicable independent organization. Suspension of
the ability to acquire new customers does not impact a REP's obligation
to timely initiate service to a customer that completed enrollment
with the REP prior to the effective date of the suspension, even if
the scheduled service initiation date falls within the suspension
period.
(8) Nothing in this subsection limits the commission's
ability to revoke a REP's certificate, proceed with a draw on a REP's
financial instruments, or impose administrative penalties. Commission
staff retains the discretion to seek to revoke the certificate of
a REP subject to suspension.
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