| (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.
Cont'd... |
