PUCT Staff Opposes Letter of Credit Waiver Sought by Clearview Email This Story February
PUCT Staff, in responsive testimony, has recommended that the Commission not grant
Clearview Electric a waiver of the letter of credit requirements of Subst. R. 25.107,
stating that Clearview has not established good cause for a waiver.
Though Staff had previously opposed the waiver request, Staff's responsive testimony
represents its first formal position since the case was referred to SOAH and Clearview made its case in direct testimony.
Clearview is seeking a temporary waiver of the $500,000 letter of credit requirement
given its small customer base of less than 100 customers in Texas, which has an average
monthly billing total of just $9,500 (see 10/6).
"Clearview's circumstances are not unique and special, and its willingness to not
add any new customers and to provide a smaller letter of credit is not a sufficient
justification for a waiver," Staff testified. "Rather, these are new options invented
and offered by Clearview that are not provided in the rules adopted by the Commission,
and could be offered by any REP that has failed to meet the minimum requirements
of P.U.C. Subst. R. 25.107," Staff said.
"[T]he letter-of-credit provision is the most important provision because it provides
performance assurance to the Commission and tangible relief to customers and other
market participants in the event of default," Staff added.