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Texas Chair Nelson's Message to Retail Market Bad Actors: "Go Somewhere Else"; Anderson Reminds That Violations of PURA May Be Criminal (Not Civil) Retail electric providers should not waste their time trying to exploit Texas customers, because Texas regulators are watching, are going to find out, will revoke the company's license, and will fine the company, Donna Nelson, Chair of the Public Utility Commission of Texas, said during last week's open meeting.
"So, go somewhere else," Nelson said to disreputable retail providers.
Nelson's comments came as the Commission adopted, with additions as outlined in a prior memo from Nelson (see prior story), a settlement fining EBC Energy Today $1.5 million for acting as a REP without a certificate by "leasing" the d/b/a of a certificated REP, and interfacing with ERCOT and the Commission by using this certificated REP as an intermediary.
Nelson and Commissioner Kenneth Anderson both warned REPs of the risk of buying on the spot market, and said that the Commission will not tolerate REPs that attempt to exploit low spot market prices for as long as they can make money, then walk away without honoring their commitments (leaving the market with uplift) when prices spike.
Relying on the spot market, even for supplying variable products, is, "a dangerous way to go," Anderson said, "and I think an imprudent way to go." Even relying on the day-ahead market is risky, Anderson said.
Anderson also encouraged Staff to maintain a written list of "bad boys" [or girls] in the retail electric market that can be used when vetting new REPs or changes in REP ownership or officers. While Staff currently has a good institutional memory of problem actors, and routinely checks applicants against a database of prior violations, such a list has not yet been reduced to paper. Anderson said that Staff should consider such a list due to churn among Staff and Commissioners, to ensure that several years from now, there is an easily accessible list that can be referenced.
Anderson also said that the Commission should, "keep in our toolbox," Section 15.030(a) of PURA, which makes an offense under PURA a criminal (third degree felony) rather than civil matter.
While Anderson said that most retail violations are appropriately civil matters, Section 15.030(a) of PURA may be relevant for the most egregious cases.
Nelson also suggested that as Staff develops a list of post-legislative session rulemakings, it should consider a forum for the Commission to revisit the instances under which a REP applicant (or its principals) cannot remedy prior actions which should prevent them from being certificated as a new REP.
"At some point, those people need not be in the market," Nelson said.
It was not immediately clear if this would involve re-opening the REP certification substantive rules.
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June 24, 2013
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Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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