Settlement Reached On Revocation Of Texas REP's Certificate
October 8, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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GridPlus Texas, Inc. (GridPlus), Staff of the Public Utility Commission of Texas (Staff), the Electric Reliability Council of Texas, Inc. (ERCOT), and the Office of Public Utility Counsel (OPUC) have filed a settlement under which GridPlus's retail electric provider certificate would be revoked for defaulting on ERCOT obligations in the aftermath of the February winter weather event.
Under the settlement, Commission Staff will not seek any administrative penalties from GridPlus for the alleged violations addressed in the proceeding.
The settlement states, "On April 19, 2021, ERCOT sent GridPlus a notice of material breach of its Standard Form Market Participant Agreement (SFA) for failure to timely pay settlement invoices in the amount of $1,431,642.73 and provide collateral in the amount of $1,314,595.59. ERCOT's notice established a deadline of April 19, 2021 to cure the payment breach. GridPlus did not cure its payment breach by the deadline; accordingly, ERCOT and Commission Staff assert that GridPlus defaulted under the terms of the SFA."
The settlement states that, as previously reported, "On March 10, 2021, GridPlus sold its customer book to JP Energy Resources LLC d/b/a Ampra Energy (Ampra Energy). Between March 10, 2021 and March 13, 2021, all GridPlus customers were transferred to Ampra Energy."
The settlement states that, prior to the Winter Storm Uri event, GridPlus had about 3,000 customers.
The settlement states, "At the time of GridPlus's alleged default with ERCOT on April 19, 2021, the only principal employee of GridPlus was Karl Kreder, acting as the company' s president."
Under the settlement, the parties agree that GridPlus' s REP certificate number 10256 will be revoked, rather than relinquished, by the Commission for the violations described in the settlement, as provided under PURA § 39.356(a) and 16 TAC § 25.107(j).
Under the settlement, the Commission will use the proceeds derived from GridPlus's letters of credit to partially satisfy GridPlus's outstanding obligations as set forth under 16 TAC §25.107(f)(6). As of September 30, 2021, ERCOT asserts that GridPlus owed $1,494,331.11 to ERCOT for outstanding invoices.
GridPlus has on-file with the PUC letters of credit in the amount of $570,000