| (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.
(A) The annual report shall include:
(i) Any changes in addresses, telephone numbers, authorized
contacts, and other information necessary for contacting the certificate
holder.
(ii) Identification of areas where the REP is providing
retail electric service to customers in Texas compiled by zip code.
(iii) A list of aggregators with whom the REP has conducted
business in the reporting period, and the commission registration
number for each aggregator.
(iv) A sworn affidavit that the certificate holder
is not in material violation of any of the requirements of its certificate.
(v) Any changes in ownership.
(vi) Any changes in management, experience, and personnel
relied on for certification in each semi-annual report before the
REP begins serving customers and in the first semi-annual report after
the REP serves customers.
(vii) Documentation to demonstrate ongoing compliance
with the financial requirements of subsection (f) of this section,
including, but not limited to, calculations showing tangible net worth,
financial ratios or shareholders' equity, as applicable, and the amount
of customer deposits and the balance of an account in which customer
deposits are held, supported by a sworn statement from an executive
officer of the REP attesting to the accuracy, in all material respects,
of the information provided. Any certified calculations provided as
part of the annual report to demonstrate such compliance shall be
as of the end of the most recent fiscal quarter. A REP may submit
any relevant documentation of the type required by subsection (f)(4)
of this section to demonstrate its ongoing compliance with the financial
requirements of subsection (f) of this section.
(B) The semi-annual report shall include:
(i) Documentation to demonstrate ongoing compliance
with the financial requirements of subsection (f) of this section,
including, but not limited to, calculations showing tangible net worth,
financial ratios or shareholders' equity, as applicable, and the amount
of customer deposits and the balance of an account in which customer
deposits are held, and shall be supported by a sworn statement from
an executive officer of the REP attesting to the accuracy of the information
provided. Any certified calculations provided as part of the semi-annual
report to demonstrate such compliance shall be as of the end of the
most recent fiscal year and most recent fiscal quarter. A REP may
submit any relevant documentation of the type required by subsection
(f)(4) of this section to demonstrate its ongoing compliance with
the financial requirements of subsection (f) of this section.
(ii) The audited financial statements of the REP or
its guarantor for the most recent completed calendar or fiscal year
with accompanying footnotes and the independent auditor's report,
if not previously filed.
(iii) The unaudited financial statements for the most
recent six-month financial period that immediately follows the end
of its most recent fiscal year. Unaudited financial statements shall
include a sworn statement from an executive officer of the REP attesting
to the accuracy, in all material respects, of the information provided
in the unaudited financial statements. In lieu of six-month unaudited
financial statements, six consecutive months of monthly financial
statements may be submitted.
(C) The requirement for financial statements may be
satisfied by filing a copy of or by providing an electronic link to
its most recent statement that contains unaudited financials filed
with any agency of the federal government, including without limitation,
the Securities and Exchange Commission. A REP that is part of a structure
that is consolidated for financial reporting purposes and files financial
reports with a federal agency on a consolidated company basis may
provide financial statements for the consolidated company to meet
this requirement.
(D) REPs or guarantors with an investment-grade credit
rating are not required to provide financial statements pursuant to
this section.
(6) A REP shall not cease operations as a REP without
prior notice of at least 45 days to the commission, to each of the
REP's customers to whom the REP is providing service on the planned
date of cessation of operations, and to other affected persons, including
the applicable independent organization, TDUs, electric cooperatives,
municipally owned utilities, generation suppliers, and providers of
last resort. The REP shall file with the commission proof of refund
of any monies owed to customers. Upon the effective cessation date,
a REP's certificate will be suspended. A REP must demonstrate full
compliance with the requirements of this section, including but not
limited to, the requirement to demonstrate shareholders' equity of
not less than one Cont'd... |
