Updated: Statement From GB Power On PUCT Staff Petition To Revoke REP Certificate
(Earlier): Texas Retail Provider Acquires Another Customer Book
March 31, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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Updated, 7:38 ET 3/31
GB Power provided the statement below concerning the matter. Concerning the allegations made by PUCT Staff, GB Power emphasized that although there was an investigation, there was also a negotiation and potential settlement with the PUCT.
GB Power's statement is as follows:
"Although the commission had an ongoing investigation with GB Power, it is also true, that we were very close to a settlement with them, based on the clean records of GB Power before the investigation, and all the measures taken by GB Power to correct any deficiencies.
"Also, the reduction of complaints due to those measures being implemented, helped our case, to enter in negotiations with the commission, which were concluded and a final settlement was to be executed. We were waiting to hear back from them on some final minor changes to the settlement draft, but we all know what happened in February, so the settlement was never executed."
--- Statement from GB Power
Texas retail electric provider JP Energy Resources LLC recently acquired a book of customers from GB Power LLC, with the transition of customers recently completed
Additionally, Staff of the Texas PUC have filed a petition to revoke the REP certificate of GB Power LLC, as Staff alleged, "On Friday, March 19, 2021, the Electric Reliability Council of Texas (ERCOT) provided GB Power with a notice of material breach for failure to provide collateral in the amount of $17,429,214.45 and failure to timely pay Settlement Invoices in the amount of $19,894,457.02. GBPower failed to cure the breach and defaulted under the Standard Form Market Participant Agreement (SFA). Accordingly, on Tuesday, March 30, 2021, ERCOT revoked all rights of GB Power as a Market Participant and terminated its SFA. Given these circumstances, Commission Staff believes that GB Power is no longer able to meet its financial obligations to ERCOT."
As the transition of GB Power's customers had been completed prior to such Standard Form Market Participant Agreement revocation at ERCOT, no POLR drop occurred
Staff further alleged that, "Additionally, prior to GB Power's payment breach, Commission Staff was engaged in an investigation of GB Power regarding misconduct in violation of numerous Commission rules. Although the investigation was not finalized before GB Power's payment breach with ERCOT, GB Power was aware of Commission Staff's concerns with GB Power's actions as early as September 25, 2019."
In addition to the financial issues, Staff alleged that GB Power's potential violations include:
• "Erroneously imposing switch-holds or failing to remove switch-holds within the timeline described in 16 TAC § 25.480"
• "Billing an unauthorized charge, or causing an unauthorized charge to be billed, to a customer's retail electric service bill"
• "A pattern of not responding to commission inquiries or customer complaints in a timely fashion"
Accordingly, Commission Staff initiated the revocation petition to: (1) revoke GB Power's REP certificate number 10244; (2) identify claims against the financial resources relied upon by GB Power in obtaining its REP certificate; and (3) proceed against any financial resources that GB Power relied on to obtain its REP certification in accordance with 16 TAC § 25.107(f) and (i)(7)