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NextEra Says Divestiture of Texas REPs Sought By NRG Under Oncor Acquisition Is, "Plainly Anti-Competitive"

February 3, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The recommendation from the NRG Companies that NextEra Energy be required to divest its Texas retail electric providers as a condition of any approval of NextEra's acquisition of Oncor is, "plainly anti-competitive," NextEra Energy, Inc. said in rebuttal testimony.

See our prior story for background on NRG's proposal to require divestiture of NextEra's Texas REPs

"NRG's suggestion that NextEra Energy should be required to divest its REP affiliates in ERCOT is also plainly anti-competitive and inconsistent with the statute that allows functional unbundling," NextEra said in testimony

"Moreover, there has been no showing that there is any need for such a requirement," NextEra said

NextEra reiterated that the size of NextEra Energy's retail affiliates (Gexa Energy and NextEra Retail Texas, LP [NRT]) in ERCOT is one-fourth the size of Oncor's previous retail affiliate, TXU Energy.

"Further, the combined Gexa Energy and NRT market share is much smaller than TXU Energy's in Oncor's service territory, i.e., about one-sixth of the size of TXU Energy in the case of retail sales, and about 1/14th of the size in the case of number of customers served in the Oncor service area," NextEra said

NextEra also opposed a proposal from the Texas Energy Association for Marketers that, in addition on the prohibition of sharing a logo or brand used by a competitive affiliate, Oncor be prohibited from sharing an "identifying brand feature" with a competitive affiliate.

In a regulatory commitment, NextEra had committed that, "Oncor shall maintain a name and logo separate and distinct from the names of its Texas competitive affiliates."

NextEra had committed that, "[Oncor] does not share a name, trademark, brand, or logo with a competitive affiliate."

"For the sake of clarity, Gexa and other Texas competitive affiliates will not use the Oncor name or logo, nor will Oncor engage in joint marketing, advertising, or promotional efforts with any Texas competitive affiliate, in a manner that is inconsistent with the Public Utility Regulatory Act and the Commission's affiliate rules," NextEra had committed

TEAM had proposed that this commitment be modified to prohibit Oncor's use of an, "identifying brand feature," with TEAM proposing language that, "Oncor does not share a name, trademark, brand, logo, or any identifying brand feature with a competitive affiliate."

In rebuttal testimony, NextEra said TEAM's modified language, "goes beyond current requirements relating to joint marketing between utilities and competitive affiliates in Commission Substantive Rule 25.272," and said TEAM's proposal should not be adopted.

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