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Securitization Opt-Out Requests Reveal Several Option 2 REPs Which Only Serve Own Load

ERCOT Reports On Denied Customer Opt-out Requests (Some Made By REPs) Due To Incomplete Info Or Ineligibility

November 30, 2021

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Copyright 2010-21
Reporting by Paul Ring •

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The ERCOT uplift securitization opt-out process has confirmed that several Option 2 retail electric providers in Texas only serve their own load or affiliate load

REPs may only opt-out of the program if such REP has the same corporate parent as or is an affiliate to each of the REP’s customers

Because Option 2 REPs, which are limited to serving customers 1 MW and larger which provide an affidavit agreeing to such service, file their customers under seal, it is opaque as to which Option 2 REPs are actively marketing to large C&I customers, versus those that only wish to serve large affiliates. Due to the nature of the securitization opt-out process, it can be confirmed that several Option 2 REPs only serve their own or affiliated load.

As previously reported, a settlement concerning the securitization program noted that Texas Retail Energy, LLC (the Option 2 REP which serves Wal-mart) elected to opt-out of the program

According to a new ERCOT report, several additional Option 2 REPs have opted out, indicating that such REP has the same corporate parent as or is an affiliate to each of the REP’s customers

Also notable is that the PUC's securitization order states that, "It is necessary and appropriate that a REP that opts out of uplift charges not gain an undue market advantage by changing the option under which it is certificated at the time it opts out by precluding such opt-out REP from amending its certification to allow service under a different option."

"Any REP that opts out of uplift charges should not be precluded from forming a new entity to enter the market and obtain a REP certificate under any available option, but that new entity will not have opt-out status," the PUC's order provides

Additional REPs opting out of the securitization program are:

• Total Gas and Power North America Inc

• Gerdau Ameristeel Energy Inc

• Occidential Power Marketing LP

• BP Energy Company

• Talen Energy Marketing LLC

The ERCOT report also lists several opt-out requests, including some filed by REPs for themselves or on behalf of customers, that ERCOT intends to deny absent PUC direction to the contrary, due to incomplete info, or some of the ESI IDs included in the request not being transmission-level voltage

ERCOT's report also reminds REPs of the process to submit interval-level settlement meter data for relevant customers by Dec. 1

ERCOT encouraged stakeholders to review the report to confirm its accuracy concerning granted and denied opt-outs and contact ERCOT immediately if the REP has a dispute

The report can be found here (Docket 52364)

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