| (vi) sixth, for administrative penalties assessed under
Chapter 15 of PURA.
(B) Proceeds from an irrevocable stand-by letter of
credit provided under this subsection shall, 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 REP.
(g) Technical and managerial requirements. A REP must
have the technical and managerial resources and ability to provide
continuous and reliable retail electric service to customers, in accordance
with its customer contracts, PURA, commission rules, ERCOT protocols,
and other applicable laws.
(1) Technical and managerial resource requirements
include:
(A) Capability to comply with all applicable scheduling,
operating, planning, reliability, customer registration, and settlement
policies, protocols, guidelines, procedures, and other rules established
by ERCOT or other applicable independent organization including any
independent organization requirements for 24-hour coordination with
control centers for scheduling changes, reserve implementation, curtailment
orders, interruption plan implementation, and telephone number, fax
number, e-mail address, and postal address where the REP's staff can
be directly reached at all times.
(B) Capability to comply with the registration and
certification requirements of ERCOT or other applicable independent
organization and its system rules, or contracts for services with
entities registered with or certified by ERCOT or other applicable
independent organization.
(C) Compliance with all renewable energy portfolio
standards in accordance with §25.173 of this title (relating
to Goal for Renewable Energy).
(D) Principals or permanent employees in managerial
positions whose combined experience in the competitive electric industry
or competitive gas industry equals or exceeds 15 years. An individual
that was a principal of a REP that experienced a mass transition of
the REP's customers to POLR shall not be considered for purposes of
satisfying this requirement, and shall not own more than 10% of a
REP or directly or indirectly control a REP.
(E) At least one principal or permanent employee who
has five years of experience in energy commodity risk management of
a substantial energy portfolio. Alternatively, the REP may provide
documentation demonstrating that the REP has entered into a contract
for a term not less than two years with a provider of commodity risk
management services that has been providing such services for a substantial
energy portfolio for at least five years. A substantial energy portfolio
means managing electricity or gas market risks with a minimum value
of at least $10,000,000.
(F) Adequate staffing and employee training to meet
all service level commitments.
(G) The capability and effective procedures to be the
primary point of contact for retail electric customers for distribution
system service in accordance with applicable commission rules, including
procedures for relaying outage reports to the TDU on a 24-hour basis.
(H) A customer service plan that describes how the
REP complies with the commission's customer protection and anti-discrimination
rules.
(2) An applicant shall include the following in its
initial application for REP certification:
(A) Prior experience of one or more of the applicant's
principals or permanent employees in the competitive retail electric
industry or competitive gas industry;
(B) Any complaint history, disciplinary record and
compliance record during the ten years immediately preceding the filing
of the application regarding: the applicant; the applicant's affiliates
that provide utility-like services such as telecommunications, electric,
gas, water, or cable service; the applicant's principals; and any
person that merged with any of the preceding persons;
(i) The complaint history, disciplinary record, and
compliance record shall include information from any federal agency
including the U.S. Securities and Exchange Commission and the U.S.
Commodity Futures Trading Commission; any self-regulatory organization
relating to the sales of securities, financial instruments, physical
or financial transactions in commodities, or other financial transactions;
state public utility commissions, state attorney general offices,
or other regulatory agencies in states where the applicant is doing
business or has conducted business in the past including state securities
boards or commissions, the Texas Secretary of State, Texas Comptroller's
Office, and Office of the Texas Attorney General. Relevant information
shall include the type of complaint, status of complaint, resolution
of complaint, and the number of customers in each state where complaints
occurred.
(ii) The applicant may request to limit the inclusion
of this information if it would be unduly burdensome to provide, so
long as the information provided is adequate for the commission to
assess the applicant's and the applicant's principals' and affiliates'
complaint history, disciplinary record, and compliance record.
(iii) The commission may also consider any complaint
information on file at the commission.
(C) A summary of any history of insolvency, bankruptcy,
dissolution, merger, or acquisition of the applicant or any predecessors
in interest during the 60 months immediately preceding the application;
(D) A statement indicating whether the applicant or
the applicant's principals are currently under investigation or have
been penalized by an attorney general or any state or federal regulatory
agency for violation of any deceptive trade or consumer protection
laws or regulations;
(E) Disclosure of whether the applicant or applicant's
principals have been convicted or found liable for fraud, theft, larceny,
deceit, or violations of any securities laws, customer protection
laws, or deceptive trade laws in any state;
(F) An affidavit stating that the applicant will register
with or be certified by ERCOT or other applicable independent organization
and will comply with the technical and managerial requirements of
this subsection; or that entities with whom the applicant has a contractual
relationship are registered with or certified by the independent organization
and will comply with all system rules established by the independent
organization;
(G) An affidavit identifying all principals, executive
management, and employees, or contract employees of the applicant
that exercised influence or control over a REP that experienced a
mass transition of the REP's customers to POLR. If such a relationship
existed, the applicant shall include in the affidavit the name of
the REP that experienced a mass transition of the REP's customers
to POLR and provide factual statements as to whether and, if so, how
the REP that experienced a mass transition of the REP's customers
to POLR settled all outstanding obligations including the return of
any owed customer deposits; and
(H) Other evidence, at the discretion of the applicant,
supporting the applicant's plans for meeting requirements of this
subsection.
(h) Customer protection requirements. A REP shall comply
with all applicable customer protection requirements, including disclosure
requirements, marketing guidelines and anti-discrimination requirements,
and the requirements of this section.
(i) Requirements for reporting and changing certification.
To maintain a REP certificate, a REP must keep its certification information
up to date, pursuant to the following requirements:
(1) A REP shall notify the commission within five working
days of any change in its business address, telephone numbers, authorized
contacts, or other contact information.
(2) A REP that demonstrates compliance with certification
requirements of this section by submitting an affidavit shall supply
information to the commission to show actual compliance with this
section.
(3) A REP shall apply to amend its certification within
ten working days of a material change to the information provided
as the basis for the commission's approval of the certification application.
A REP may seek prior approval of a material change, including a change
in control, by filing the amendment application before the occurrence
of the material change. The transfer of a REP certificate is a material
change.
(4) For an Option 1 REP, the REP shall notify the commission
within three working days of its non-compliance with subsection (f)(1)(A)
or (B) of this section. The notification shall set out a plan of recourse
to correct the non-compliance with subsection (f)(1)(A) or (B) of
this section within 10 working days after the non-compliance has been
brought to the attention of the commission. The commission staff may
initiate a proceeding to address the non-compliance.
(5) For an Option 1 REP, the REP shall file a report
due on March 5, or 65 days after the end of the REP or guarantor's
fiscal year (annual report), and August 15, or 225 days after the
end of the REP or guarantor's fiscal year (semi-annual report), of
each year.
Cont'd... |
