| (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 million dollars and its associated restrictions
pursuant to subsection (f)(1)(B) of this section, in order for the
commission to reinstate the certificate. The commission may revoke
a suspended certificate if it determines that the REP does not meet
certification requirements.
(7) If a REP files a petition in bankruptcy, is the
subject of an involuntary bankruptcy proceeding, or in any other manner
becomes insolvent, it shall notify the commission within three working
days of this event and shall provide the commission a summary of the
nature of the matter. The commission shall have the right to proceed
against any financial resources that the REP relied on in obtaining
its certificate, to satisfy unpaid obligations to customers or administrative
penalties.
(8) A REP shall respond within three working days to
any commission staff request for additional information to confirm
continued compliance with this section.
(j) Suspension and revocation. A certificate granted
pursuant to this section is subject to amendment, suspension, or revocation
by the commission for a significant violation of PURA, commission
rules, or rules adopted by an independent organization. A suspension
of a REP certificate requires the cessation of all REP activities
associated with obtaining new customers in the state of Texas. A revocation
of a REP certificate requires the cessation of all REP activities
in the state of Texas, pursuant to commission order. The commission
may also impose an administrative penalty on a person for a significant
violation of PURA, commission rules, or rules adopted by an independent
organization. The commission staff or any affected person may bring
a complaint seeking to amend, suspend, or revoke a REP's certificate.
Significant violations include the following:
(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 retail
electric provider 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 customers pursuant to this section;
(6) Failure to maintain financial resources in accordance
with subsection (f) of this section;
(7) Bankruptcy, insolvency, or 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 rules established by the 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) 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;
(13) Not providing retail electric service to customers
within 24 months of the certificate being granted by the commission;
(14) Failure to serve as a POLR if required to do so
by the commission;
(15) Providing retail electric service in an area in
which customer choice is in effect without obtaining a certificate
under this section;
(16) Failure to timely remit payment for invoiced charges
to a transmission and distribution utility pursuant to the terms of
the statewide standardized tariff adopted by the commission;
(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 §25.272 of this title;
and
(19) Other significant violations, including the failure
or a pattern of failures to meet the requirements of this section
or other commission rules or orders.
|
