ERCOT Revokes Retail Electric Provider's Rights As A Market Participant
September 4, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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ERCOT reported in an interrogatory response at the Public Utility Commission of Texas that ERCOT has revoked Axon Power and Gas LLC's rights as a Market Participant and terminated Axon's SFA [Standard Form Market Participant Agreement] with ERCOT.
As previously reported, Axon Power and Gas had previously been subject to default under a TDU tariff in 2019. As previously reported (story here), Axon sold its customer book and is not currently serving customers.
As previously reported, a petition from Staff of the Public Utility Commission of Texas to revoke Axon's certificate, due to alleged defaults under the TDU tariffs, is pending before the PUC (story here), and such proceeding is currently abated. During such abatement, Axon represented that it will take no action to enroll any new customers.
As previously reported, Axon has made payment to several TDUs and Axon has said during 2020 that it has been in discussions with PUC Staff to address outstanding issues and re-enter the market
Axon had said in an August 14 status report with the PUCT that, "Axon and Staff were making significant progress toward a proposed resolution of this proceeding and it was anticipated that a proposed settlement agreement would be circulated to the rest of the Parties in the two weeks that followed. Subsequent events have led to a need for the settlement agreement's terms to be significantly and substantially altered."
In a September 4 filing with the PUCT, ERCOT stated that, "On August 11, 2020, ERCOT notified Axon Power and Gas LLC (Axon) that it was in material breach for failure to comply with ERCOT Protocol Section 16.11.5, Monitoring of a CounterParty's Creditworthiness and Credit Exposure by ERCOT -- i.e., failure to file audited financial statements for 2019. To cure the material breach, Axon was required to (a) submit its 2019 annual audited financial statements to ERCOT by August 31, 2020, or (b) promptly provide ERCOT with written notice why the breach could not reasonably be cured within 14 Business Days, begin taking steps to cure the breach within three Business Days, and attempt to work to cure the breach with reasonable diligence until the curative work or efforts were completed. See Subsection 8(A)(2) of ERCOT Protocol Section 22, Attachment A: Standard Form Market Participant Agreement. Axon failed to cure the material breach by August 31, 2020. As a result of Axon's default under the SFA and in accordance with Protocol Section 220.127.116.11.6, Revocation of a Market Participant's Rights and Termination of Agreements, on September 1, 2020, ERCOT revoked Axon's rights as a Market Participant and terminated its SFA with ERCOT."