Reliant Seeks To Serve As Volunteer POLR In Texas (Requires Rule Exception); PUC Staff Recommend Approval

February 19, 2021

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Reporting by Paul Ring • ring@energychoicematters.com

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Reliant Energy Retail Services LLC (RERS) filed a request at the Texas PUC to be designated as a volunteer POLR, formally known as a Voluntary Retail Electric Provider (VREP), for the residential and small commercial customer classes.

Reliant said that it is willing to serve as volunteer POLR for the residential and small commercial customer classes within each POLR area, up to a confidential number of ESI IDs filed with the PUC

"Although the deadline to file for VREP designation under 16 TAC § 25.43 for the current Provider of Last Resort ('POLR') term has passed, the Public Utility Commission of Texas ('Commission') has the authority to grant this request under 16 TAC § 25.3(b), which allows the Commission to may make exceptions to 16 TAC Chapter 25 for good cause," Reliant said

"Good cause to grant this application exists because the current winter weather event could increase the possibility of mass transition events. If such events were to occur, having a sufficient number of VREPs would simplify the transition process and result in less negative impacts to customers. In a mass transition event, the Electric Reliability Council of Texas ('ERCOT') first transfers customers to VREPs, up to the number of ESI IDs that each VREP has offered to serve for each customer class in the POLR area.1 If the number of ESI IDs exceeds the amount the VREPs are designated to serve, ERCOT assigns the remaining ESI IDs to Large Service Providers ('LSPs'). Customers transferred to VREPs, as opposed to those transferred to an LSP, would pay a lower price for electricity because the Commission’s rules require VREPs to provide service to customers using a market-based, month-to-month product. LSPs may charge a maximum rate for POLR service that is based on a formula that incorporates, among other elements, the real time settlement point prices ('RTSPP') for the customer’s load zone. The RTSPPs can be up to $9.00 per kilowatt hour, which could potentially result in an extremely high POLR rate that could be difficult for many customers to bear," Reliant said

PUC Staff recommended approval of Reliant's request, and also recommended approval of a separate request from TXU, which is currently the only volunteer POLR, to increase the number of customers TXU is willing to accept as a non-volunteer POLR (as noted in our story earlier this week)

Furthermore, PUC Staff recommended that the July 31 deadline in the POLR rule be waived for any current non-volunteer POLR (Large Service Providers, or LSP) that files a request by 3:00 pm on Monday, February 22, 2021 to either become a volunteer POLR, or that seeks to increase the number of customers it is willing to accept as a non-volunteer POLR

"Staff further requests that authority be given to Staff to administratively approve such filings provided that the LSP has filed sufficient information to demonstrate it is capable of serving the additional ESI IDs without having to request additional good cause exceptions," Staff recommended

Staff further said, "POLR transitions should not begin before Wednesday, February 24, 2021 so that acquisitions can begin and all VREPs will be in place."

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