| (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
rules.
(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
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 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
organization.
(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;
Cont'd... |
