| (G) Comply with the registration and certification
requirements of the applicable independent organization and its system
rules and protocols, or each contract for services with a third-party
provider that is required to be registered with or certified by the
applicable independent organization.
(H) Maintain adequate staffing and employee training
to meet all service level commitments.
(I) Respond within five working days to any commission
or commission staff request for information, unless otherwise provided
by the commission, commission staff, or other applicable law.
(2) An applicant must provide the following information
to the commission to certify as a REP under this section.
(A) An application for certification or amendment to
a certificate must be made on a form approved by the commission, specify
whether the applicant seeks to obtain or amend a REP certificate,
and be accompanied by a signed, notarized affidavit attesting that
all material provided in the application is true, correct, and complete.
The affidavit must be signed by an executive officer of the applicant.
(B) Information related to the applicant's status as
a legal entity, including information related to its tax status and
authority to do business in Texas to verify the information required
under paragraphs (1)(A)-(C) of this subsection. The following information
must be provided:
(i) A copy of the applicant's Texas Secretary of State
registration and filing numbers associated with the registration.
A business name must not be deceptive, misleading, vague, otherwise
contrary to §25.272 of this title (relating to Code of Conduct
for Electric Utilities and Their Affiliates), or duplicative of a
name previously approved for use by a REP certificate holder.
(ii) The applicant's Texas Comptroller of Public Accounts
tax identification number, and all other relevant or other applicable
certification or file numbers.
(C) The applicant's current contact information required
under paragraph (1)(D) of this subsection.
(D) The applicant's current office information required
under paragraph (1)(E) of this subsection.
(E) Information on the applicant, including:
(i) a list of the applicant's subsidiaries and parent
companies up to the ultimate corporate parent, and any sister companies
that are registered or certified with the commission. Each company
must be identified by name and, if applicable, type of commission
registration or certification.
(ii) an ownership and corporate structure chart that
includes ownership percentages. The chart must be as detailed as practicable,
but must contain, at minimum, the entities listed under clause (i)
of this subparagraph and any entities with more than ten percent ownership
of the REP or any of the REP's parent companies with a controlling
interest in the REP.
(iii) a list of all principals, provided in Microsoft
(iv) a list of all executive officers, provided in
Microsoft Excel format.
(F) A statement affirming compliance with paragraphs
(1)(F) - (I) of this subsection and a short summary describing how
the applicant has complied, or for paragraph (1)(I) of this subsection
how the applicant will comply, with each subparagraph.
(G) The control number and item number where the applicant
has filed its Emergency Operations Plan as required under §25.53
of this title (relating to Electric Service Emergency Operations Plans).
(H) An applicant for an Option 1 REP certificate must
designate one of the following categories as its geographic service
(i) The geographic area of the entire state of Texas;
(ii) A specific geographic area (indicating the zip
codes applicable to that area);
(iii) The service area of one or more specific TDUs,
municipal utilities, or electric cooperatives in which competition
is offered; or
(iv) The geographic area of ERCOT or other independent
organization to the extent it is within Texas.
(I) An applicant for an Option 2 REP certificate must
include a signed, notarized affidavit stating that it will only contract
with customers to provide one megawatt or more of energy. Within 30
days of conditional commission approval of the application and before
an Option 2 REP begins serving a customer, the Option 2 REP must file
with the commission a signed, notarized affidavit from each customer
with which it has contracted to provide one megawatt or more of energy.
The affidavit may be submitted by the applicant while the application
for an Option 2 REP certificate is pending. Each customer affidavit
must state that the customer understands and accepts the REP's ability
to provide continuous and reliable electric service based on the applicant's
financial, managerial, and technical resources.
(J) An applicant for an Option 3 REP certificate must:
(i) identify the name of the PGC that owns the distributed
generation facilities and affirm that the PGC is registered under §25.109
of this title; and
(ii) provide a signed, notarized affidavit from an
executive officer of the PGC confirming:
(I) the PGC operating the distributed generation facility
conforms to the requirements of §25.211 of this title (relating
to Interconnection of On-Site Distributed Generation (DG)) and §25.212
of this title (relating to Technical Requirements for Interconnection
and Parallel Operation of On-Site Distributed Generation);
(II) the distributed generation facility is installed
by a licensed electrician, consistent with the requirements of the
Texas Department of Licensing and Regulation; and
(III) the distributed generation facility is installed
in accordance with the National Electric Safety Code as adopted by
the Texas Department of Licensing and Regulation and otherwise complies
with all applicable local and regional building codes.
(e) Technical and managerial requirements. An Option
1 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,
applicable independent organization protocols, and other applicable
laws. This subsection does not apply to an Option 2 or Option 3 REP.
(1) Technical and managerial resource requirements.
The following are technical and managerial resource requirements a
REP must maintain on an ongoing basis.
(A) One or more principals or employees in managerial
positions whose combined experience in the competitive electric industry
or competitive gas industry equals or exceeds 15 years. A third-party
provider's experience may not be used to meet this requirement.
(B) One executive officer or employee in a managerial
position who has five years of experience in energy commodity risk
management of a substantial energy portfolio. Alternatively, the REP
may enter into a contract for a term not less than two years with
a third-party 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.
(C) If providing retail electric service in the ERCOT
region, compliance with all applicable ERCOT requirements, including:
(i) execution of a service agreement with a QSE;
(ii) maintaining 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;
(iii) providing outage notifications in accordance
with § 25.53 of this title; and
(iv) completing ERCOT flight test obligations.
(D) A customer service plan that describes how the
REP complies with the commission's customer protection and anti-discrimination
(2) Technical and managerial documentation requirements.
The following information must be provided by an applicant to demonstrate
compliance with the technical and managerial requirements under paragraph
(1) of this subsection.
(A) A list of all third-party providers accompanied
by a description of each third-party provider's responsibilities and
delegation of authority, provided in Microsoft Excel format.
(B) Resumes showing prior experience of one or more
of the applicant's principals or managerial employees in the competitive
retail electric industry or competitive gas industry to demonstrate
at least 15 years of experience and, if applicable, a resume showing
one of the applicant's executive officers or managerial employees
possess at least five years' experience in commodity risk management.
(C) If relying upon a third-party provider for commodity
risk management services to satisfy the requirement for paragraph
(1)(B) of this subsection, a copy of the executed contract is required.
(D) 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 corporate
parents, all sister companies and subsidiaries of the applicant, and
affiliates of the foregoing that provide utility-like services such
as telecommunications, internet, broadband, 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 must 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
must include the type of complaint, status of complaint, resolution
of complaint, and the number of customers in each state where complaints
(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 complaint history of the applicant's
principals and affiliates, disciplinary record, and compliance record.
(iii) Any complaint information on file at the commission
may also be considered when reviewing the application.
(E) The following statements must be supported by a
signed notarized affidavit made by an executive officer of the applicant.
(i) 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.
(ii) A statement that identifies 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.
(iii) A statement that the applicant will register
with or be certified by the applicable independent organization and
that the applicant will comply with the technical and managerial requirements
of this subsection; and that third-party providers with whom the applicant
has a contractual relationship are registered with or certified by
the independent organization, as appropriate, and will comply with
all system rules and protocols established by the applicable independent
(iv) A statement that identifies and, if applicable,
describes the applicant's relationship with any of the following persons.
(I) Identification of all of the applicant's principals,
executive officers, employees, and third-party providers that:
(-a-) exercised direct or indirect control over a REP
that experienced a mass transition of the REP's customers under §25.43
of this title (relating to Provider of Last Resort (POLR)) at any
time within the six months prior to the mass transition;
(-b-) exercised direct or indirect control over a market
participant at any time within the six months prior to a market participant
having had its ERCOT SFA terminated or a similar agreement for an
applicable independent organization other than ERCOT terminated;
(-c-) exercised direct or indirect control of a market
participant within the prior six months of a market participant having
exited an electricity or gas market with outstanding payment obligations
that remain outstanding; or
(-d-) have been barred, in any way, participation by
(II) If a relationship exists as described in subclause
(I) of this clause, the applicant must include in the affidavit for
each such relationship:
(-a-) the name of the person;