| (A) The legal name(s) of the registering party. A registering
party may operate under a maximum of five trade or commercial names. At the
time of registration, the registering party shall provide all names to the
commission and an explanation of its plan for disclosing the names to its
customers;
(B) The Texas business address and principal place of business
of the registering party;
(C) The name, title, business address, and phone number of
each of the registering party's directors, officers, or partners;
(D) Address and telephone number for the customer or member
service department or the name, title and telephone number of the customer
service contact person;
(E) Name, physical business address, telephone number, fax
number, and e-mail address for a Texas regulatory contact person and for an
agent for service of process, if a different person;
(F) The types of electricity customers that the registering
party intends to aggregate;
(G) Applicable information on file with the Texas Secretary
of State, including, but not limited to, the registering party's endorsed
certificate of incorporation certified by the Texas Secretary of State, a
copy of the registering party's certificate of good standing, or other business
registration on file with the Texas Secretary of State;
(H) Disclosure of delinquency with taxing authorities in the
state of Texas;
(I) A description of prior experience, if any, of the registering
party or one or more of the registering party's principals or employees in
the retail electric industry or a related industry;
(J) The names of the affiliates and subsidiaries, if any, of
the registering party that provide utility-related services, such as telecommunications,
electric, gas, water or cable service;
(K) Disclosure of any affiliate or agency relationships and
the nature of any affiliate or agency agreements with REPs or transmission
and distribution utilities, and an explanation of plans for disclosure to
customers and REPs with whom it does business, of its agency relationships
with REPs;
(L) A list of other states, if any, in which the registering
party and registering party's affiliates and subsidiaries that provide utility-related
services, such as telecommunications, electric, gas, water, or cable service,
currently conduct or previously conducted business;
(M) Disclosure of the registering party's known or anticipated
sources of compensation for aggregation services, and an explanation of plans
for disclosure to its customers of the sources of compensation for aggregation
services;
(N) Disclosure of the history of bankruptcy or liquidation
proceedings of the registering party or any predecessors in interest in the
three calendar years immediately preceding the registration request;
(O) Disclosure of whether the registering party, a predecessor,
an officer, director or principal has been convicted or found liable for fraud,
theft or larceny, deceit, or violations of any customer protection or deceptive
trade laws in any state;
(P) A statement indicating whether the registering party is
currently under investigation, either in this state or in another state or
jurisdiction for violation of any customer protection law or regulation;
(Q) The following information regarding the registering party's
complaint history during the three years preceding the application:
(i) Any complaint history regarding the registering party,
registering party's affiliates or subsidiaries that provide utility-related
services, such as telecommunications, electric, gas, water, or cable service,
the registering party's predecessors in interest, and principals with public
utility commissions or public service commissions in other states where the
registering party is doing business or has done business in the past. Relevant
information shall include, but not be limited to, the number of complaints,
the type of complaint, status of complaint, resolution of complaint and the
number of customers in each state where complaints occurred. The Office of
Customer Protection shall provide similar complaint information on file at
the commission for review.
(ii) Any complaint history regarding the registering party,
registering party's affiliates or subsidiaries that provide utility-related
services, such as telecommunications, electric, gas, water or cable service,
the registering party's predecessors in interest, and principals on file with
the Texas Secretary of State, Texas Comptroller's Office, Office of the Texas
Attorney General, and the Attorney General in other states where the registering
party is doing business.
(R) For a person registering as a Class II.A aggregator, pending
authorizations, if any, from public entities for the registering party to
aggregate their loads.
(S) Any other information required of persons on a registration
form approved by the commission.
(2) Alternative limited registration. A person seeking registration
pursuant to this paragraph may aggregate only customers who seek to contract
for 250 kilowatts or more, per customer, of peak demand electricity. Requirements
for registration under this paragraph are as follows:
(A) The person shall provide the commission a signed, notarized
affidavit stating that it possesses a written consent from each customer it
wishes to serve, authorizing the person to provide aggregation services for
that customer;
(B) The person shall complete applicable portions of the registration
form other than the information prescribed in paragraph (1)(J), (K), (L),
(M) and (Q) of this subsection;
(C) The person shall meet financial requirements of this section,
if applicable;
(D) A person registering on the basis of this paragraph is
subject to the applicable post-registration requirements of subsection (i)
of this section.
(g) Financial requirements for certain persons. A person registering
under this section who intends to take any deposits or other advance payments
from electricity customers for aggregation services, as distinguished from
electric services, shall demonstrate financial resources necessary to protect
customers from the loss of deposits or other advance payments through fraud,
business failure or other causes. Aggregation services are distinct from retail
electric services. A person registered initially on the basis of not accepting
customer deposits or other advance payments for aggregation services shall
amend its registration with a showing to the commission that it is able to
comply with the requirements of this subsection in advance of accepting deposits
or other advance payments for aggregation services.
(1) Standard financial qualifications. The amount of required
financial resources shall equal the registering person's cumulative obligations
to customers arising from deposits or other advance payments for aggregation
services made by customers prior to the delivery of aggregation services.
A person registering under this paragraph shall disclose its methodology for
calculating required financial resources on the registration form.
(A) Financial evidence. A aggregator may use any of the financial
instruments listed below, as well as any other financial instruments approved
in advance by the commission, in order to satisfy the financial requirements
established by this rule.
(i) Cash or cash equivalent, including cashier's check or sight
draft;
(ii) A certificate of deposit with a bank or other financial
institution;
(iii) A letter of credit issued by a bank or other financial
institution, irrevocable for a period of at least 15 months;
(iv) A line of credit or other loan issued by a bank or other
financial institution, including a bond in a form approved by the commission,
irrevocable for a period of at least 15 months;
(v) A loan issued by a subsidiary or affiliate of the applicant
or a corporation holding controlling interest in the applicant, irrevocable
for a period of at least 15 months;
(vi) A guaranty issued by a shareholder or principal of the
applicant; a subsidiary or affiliate of the applicant or a corporation holding
controlling interest in the applicant irrevocable for period of at least 15
months.
(B) Loans or guarantees. To the extent that it relies upon
a loan or guaranty described in subparagraph (A)(v) or (vi) of this paragraph,
the aggregator shall provide financial evidence sufficient to demonstrate
that the lender or guarantor possesses the financial resources needed to fund
the loan or guaranty.
(C) Unencumbered resources. All cash and other instruments
listed in subparagraph (A) of this paragraph as evidence of financial resources
shall be unencumbered by pledges for collateral. These financial resources
shall be subject to verification and review prior to registration of the aggregator
and at any time after registration in which the aggregator relies on the cash
or other financial instrument to meet the requirements under this subsection.
The resources available to the aggregator must be authenticated by independent,
third party documentation.
(D) Credit ratings. To meet the requirements of this paragraph,
a aggregator may rely upon either its own investment grade credit rating,
or a bond, guaranty, or corporate commitment of an affiliate or another company,
if the entity providing such security is also rated investment grade. The
determination of such investment grade quality will be based on the ratings
of either Standard & Poors (S&P) or Moody's Investor Services (Moody's).
If the investment grade credit rating of either S&P or Moody's is suspended
or withdrawn, the REP must provide alternative financial evidence consistent
with this paragraph within ten days of the credit downgrade.
(E) Disclosure to financial backers. A person registering under
this paragraph shall provide evidence that a copy of this rule has been provided
to any party providing, either directly or indirectly, financial resources
necessary to protect customers pursuant to this paragraph.
(F) Ongoing Responsibilities. A person registering under this
paragraph is subject to the ongoing financial requirements and other applicable
post-registration requirements of subsection (i) of this section.
(2) Alternative financial qualifications for limited registration.
A person seeking registration pursuant to this paragraph is limited to aggregating
only customers who seek to contract for 250 kilowatts or more, per customer,
of peak demand electricity. Requirements for registration on this limited
basis are as follows:
(A) The person shall provide the commission a signed, notarized
affidavit indicating that it has a written consent from each customer it wishes
to serve, stating that the customer is satisfied that the aggregator can provide
aggregation services without establishing the cash and credit resources prescribed
in paragraph (1) of this subsection.
(B) The person shall complete portions of the registration
request form other than the information prescribed in paragraph (1) of this
subsection;
(C) A person registering on the basis of this paragraph is
subject to the applicable post-registration requirements of subsection (i)
of this section.
(h) Registration procedures. The following procedures apply
to all entities seeking to register pursuant to this section:
(1) A registration request shall be made on the form approved
by the commission, verified by oath or affirmation, and signed by a registering
party owner or partner, or an officer of the registering party. The form may
be obtained from the Central Records division of the commission or from the
commission's Internet site. Each registering party shall file its form to
request registration with the commission's Filing Clerk in accordance with
the commission's procedural rules, Chapter 22 of this title, Subchapter E
(relating to Pleadings and Other Documents).
(2) The registering party may identify certain information
or documents submitted that it believes to contain proprietary or confidential
information. Registering parties may not designate the entire registration
request as confidential. Information designated as proprietary or confidential
will be treated in accordance with the standard protective order issued by
the commission applicable to requests to register as an aggregator. If and
when a public information request is received for information designated as
confidential, the registering party has the burden of establishing that information
filed pursuant to this rule is proprietary or confidential.
(3) An application shall be processed as follows:
(A) The registering party shall immediately inform the commission
of any material change in the information provided in the registration request
while the request is pending.
(B) The commission staff shall review the submitted form for
completeness. Within 15 business days of receipt of an incomplete request,
the commission staff shall notify the registering party in writing of the
deficiencies in the request. The registering party shall have ten business
days from the issuance of the notification to cure the deficiencies. If the
deficiencies are not cured within ten business days, the staff will notify
the registering party that the registration request is rejected without prejudice.
Cont'd... |
