| (B) The LSP is not required to transfer to a market-based
product any transitioned customer who is delinquent in payment of
any charges for POLR service to such LSP as of the 60th day of service.
If such a customer becomes current in payments to the LSP, the LSP
must move the customer to a market-based month-to-month product as
described in this paragraph on the next billing cycle that occurs
five business days after the customer becomes current. If the LSP
does not plan to move customers who are delinquent in payment of any
charges for POLR service as of the 60th day of service to a market-based
month-to-month product, the LSP must inform the customer of that potential
outcome in the notice provided to comply with §25.475(d) of this
title.
(5) Upon a request from an LSP and a showing that the
LSP will be unable to maintain its financial integrity if additional
customers are transferred to it under this section, the commission
may relieve an LSP from a transfer of additional customers. The LSP
must continue providing continuous service until the commission issues
an order relieving it of this responsibility. In the event the requesting
LSP is relieved of its responsibility, the commission staff designee
will, with 90 days' notice, designate the next eligible REP, if any,
as an LSP, based upon the criteria in this subsection.
(k) Designation of an LSP affiliate to provide POLR
service on behalf of an LSP.
(1) An LSP may request the commission designate an
LSP affiliate to provide POLR service on behalf of the LSP either
with the LSP's filing under subsection (h) of this section or as a
separate filing in the current term project. The filing must be made
at least 30 days prior to the date when the LSP affiliate is to begin
providing POLR service on behalf of the LSP. To be eligible to provide
POLR service on behalf of an LSP, the LSP affiliate must be certificated
to provide retail electric service; have an executed delivery service
agreement with the service area TDU; and meet the requirements of
subsection (h)(2) of this section, with the exception of subsection
(h)(2)(B), (C), (D), and (E) of this section as related to serving
customers in the applicable customer class.
(2) The request must include the name and certificate
number of the LSP affiliate, information demonstrating the affiliation
between the LSP and the LSP affiliate, and a certified agreement from
an officer of the LSP affiliate stating that the LSP affiliate agrees
to provide POLR service on behalf of the LSP. The request must also
include an affidavit from an officer of the LSP stating that the LSP
will be responsible and indemnify any affected parties for all financial
obligations of the LSP affiliate associated with the provisioning
of POLR service on behalf of the LSP in the event that the LSP affiliate
defaults or otherwise does not fulfill such financial obligations.
(3) Commission staff will make an initial determination
of the eligibility of the LSP affiliate to provide POLR service on
behalf of an LSP and publish their names. The LSP or LSP affiliate
may challenge commission staff's eligibility determination within
five business days of the notice of eligibility by submitting to commission
staff additional evidence of its capability to provide POLR service
on behalf of the LSP. Commission staff will reassess the LSP affiliate's
eligibility and notify the LSP and LSP affiliate of any change in
eligibility status within 10 business days of the receipt of the additional
documentation. If the LSP or LSP affiliate does not agree with staff's
determination of eligibility, either or both may then appeal the determination
to the commission through a contested case. The LSP must provide POLR
service during the pendency of the contested case.
(4) ERCOT or a TDU may challenge an LSP affiliate's
eligibility to provide POLR service on behalf of an LSP. If ERCOT
or a TDU has reason to believe that an LSP affiliate is not eligible
or is not performing POLR responsibilities on behalf of an LSP, ERCOT
or the TDU must make a filing with the commission detailing the basis
for its concerns and must provide a copy of the filing to the LSP
and the LSP affiliate that are the subject of the filing. If the filing
contains confidential information, ERCOT or the TDU must file it in
accordance with §25.71 of this title (relating to General Procedures,
Requirements and Penalties). Commission staff will review the filing
and if commission staff concludes that the LSP affiliate should not
be allowed to provide POLR service on behalf of the LSP, it will request
that the LSP affiliate demonstrate that it has the capability. The
commission staff will review the LSP affiliate's filing and may initiate
a proceeding with the commission to disqualify the LSP affiliate from
providing POLR service. The LSP affiliate may continue providing POLR
service to ESI IDs currently receiving the service during the pendency
of the proceeding; however, the LSP must immediately assume responsibility
to provide service under this section to customers who request POLR
service, or are transferred to POLR service through a mass transition,
during the pendency of the proceeding.
(5) Designation of an affiliate to provide POLR service
on behalf of an LSP must not change the number of ESI IDs served or
the retail sales in megawatt-hours for the LSP for the reporting period
nor does such designation relieve the LSP of its POLR service obligations
in the event that the LSP affiliate fails to provide POLR service
in accordance with the commission rules.
(6) The designated LSP affiliate must provide POLR
service and all reports as required by the commission's rules on behalf
of the LSP.
(7) The methodology used by a designated LSP affiliate
to calculate POLR rates must be consistent with the methodology used
to calculate LSP POLR rates in subsection (m) of this section.
(8) If an LSP affiliate designated to provide POLR
service on behalf of an LSP cannot meet or fails to meet the POLR
service requirements in applicable laws and Commission rules, the
LSP must provide POLR service to any ESI IDs currently receiving the
service from the LSP affiliate and to ESI IDs in a future mass transition
or upon customer request.
(9) An LSP may elect to reassume provisioning of POLR
service from the LSP affiliate by filing a reversion notice with the
commission and notifying ERCOT at least 30 days in advance.
(l) Mass transition of customers to POLR providers.
The transfer of customers to POLR providers must be consistent with
this subsection.
(1) ERCOT must first transfer customers to VREPs, up
to the number of ESI IDs that each VREP has offered to serve for each
customer class in the POLR area. ERCOT must use the VREP list to assign
ESI IDs to the VREPs in a non-discriminatory manner, before assigning
customers to the LSPs. A VREP must not be assigned more ESI IDs than
it has indicated it is willing to serve pursuant to subsection (i)
of this section. To ensure non-discriminatory assignment of ESI IDs
to the VREPs, ERCOT must:
(A) Sort ESI IDs by POLR area;
(B) Sort ESI IDs by customer class;
(C) Sort ESI IDs numerically;
(D) Sort VREPs numerically by randomly generated number;
and
(E) Assign ESI IDs in numerical order to VREPs, in
the order determined in subparagraph (D) of this paragraph, in accordance
with the number of ESI IDs each VREP indicated a willingness to serve
pursuant to subsection (i) of this section. If the number of ESI IDs
is less than the total that the VREPs indicated that they are willing
to serve, each VREP must be assigned an equal number of ESI IDs, up
to the number that each VREP indicated it was willing to serve for
a given class and POLR area.
(2) If the number of ESI IDs exceeds the amount the
VREPs are designated to serve, ERCOT must assign remaining ESI IDs
to LSPs in a non-discriminatory fashion, in accordance with their
percentage of market share based upon retail sales in megawatt-hours,
on a random basis within a class and POLR area, except that a VREP
that is also an LSP that volunteers to serve at least 1% of its market
share for a class of customers in a POLR area must be exempt from
the LSP allocation up to 1% of the class and POLR area. To ensure
non-discriminatory assignment of ESI IDs to the LSPs, ERCOT must:
(A) Sort the ESI IDs in excess of the allocation to
VREPs, by POLR area;
(B) Sort ESI IDs in excess of the allocation to VREPs,
by customer class;
(C) Sort ESI IDs in excess of the allocation to VREPs,
numerically;
(D) Sort LSPs, except LSPs that volunteered to serve
1% of their market share as a VREP, numerically by MWhs served;
(E) Assign ESI IDs that represent no more than 1% of
the total market for that POLR area and customer class less the ESI
IDs assigned to VREPs that volunteered to serve at least 1% of their
market share for each POLR area and customer class in numerical order
to LSPs designated in subparagraph (D) of this paragraph, in proportion
to the percentage of MWhs served by each LSP to the total MWhs served
by all LSPs;
(F) Sort LSPs, including any LSPs previously excluded
under subparagraph (D) of this paragraph; and
Cont'd... |
