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Texas PUC Staff Recommend That Enron Energy Texas LLC REP Application Be Denied, Without Prejudice
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Staff of the Texas PUC ("Staff") have made a recommendation on the disposition of the application of Enron Energy Texas LLC for an Option 1 retail electric provider (REP) certificate, with Staff recommending, "that the application be denied and that this proceeding be dismissed without prejudice."
An Enron spokesperson provided the following statement concerning the matter:
"We’re continuing to work with the PUC to answer many rounds of questions, as many applicants before us have done. The primary applicant brings 27 years of experience in competitive natural gas and power markets, including leadership roles at TXU, Constellation, UBS, and multiple ERCOT-connected utilities."
--- Statement from Enron
PUC Staff alleged that information filed by Enron, "does not meet the requirements of PURA § 39.352 and 16 TAC § 25.107."
Staff alleged, "Specifically, Enron has failed to demonstrate that its principals or employees have the relevant experience in the competitive electric industry or competitive gas industry to meet the requirements of 16 TAC § 25.107(e)(1)(A). Accordingly, Staff recommends that the application be denied and that this proceeding be dismissed without prejudice."
As part of the application filed with the PUC, Enron provided a resume for Gregory A. Forero as well as additional narrative information concerning Forero's experience as part of a response to a Staff RFI (noted below)
A memo from a PUC Staffer attached to Staff's recommendation alleges, "Mr. Forero’s qualifications and experience do not meet the requirement for competitive electric industry or competitive gas industry experience that equals or exceeds 15 years. The responses provided in attachment D-2 of the application and in the RFI, did not show experience in competitive electric or gas industry. The responses and experience submitted were attempting to show experience to meet the risk management experience. Risk management experience does not meet the requirements of competitive electric or gas experience."
As noted below, the RFI did specifically include a subpart related to competitive electric or gas market experience (not risk management), and Enron's response is noted below
The PUC Staffer said in the memo that, "I recommend that the application of Enron Energy Texas, LLC be denied from a technical and managerial perspective. My recommendation does not address the financial and risk management qualifications of the applicant."
Other than broadly alleging that the information filed by Enron did not show the requisite 15 years experience in the competitive electric or gas industry, Staff did not specifically describe any deficiencies in the information provided (i.e., Staff did not specifically allege certain experiences are not eligible to meet the rules' requirements, etc), suggesting that Staff's concern may be one of form over function, hinging on Staff's apparent view that there has been an insufficient demonstration that the experience qualifies to meet the rule (and/or potentially that Staff views that there was inadequate support showing the stated experience), rather than addressing the merits of the experience itself
Among other things, Enron had filed with the PUC a resume for Forero which had shown positions including Senior Trader at TXU Energy from 2001-2003; Vice President, Power at Constellation Energy from 2005-2007; and, from 2013 to present, co-founder and CEO of HGP Storage and Highgate Power, which have engaged in various activities in the ERCOT market, including development of battery energy storage systems and ownership and operation of ERCOT grid-connected emergency reserve generation. The filed resume also indicated that Forero was also previously Director, Power and Gas at UBS AG, and an Energy Trader at The Williams Companies
More specifically, the filed resume indicated that, as Senior Trader at TXU Energy, Forero, "Managed large energy asset and load portfolio," and, "Managed profitability, cash flows and hedging." The resume indicated that, at Constellation, Forero, "Managed portfolio of physical and financial energy assets. Created and marketed products focused on US energy markets," and, "Originated and managed power offerings to REPs and large C&I".
The filed resume indicated that, at HGP Storage and Highgate Power, Forero, "Designed, installed, and commissioned 3 ERCOT grid connected 9.2MW sites of grid reliability distributed generation in the Permian Basin (Texas.)," and, "Managed budget, general ledger, payroll and all EPC contracts, equipment sourcing and third-party payments".
Staff's RFI had specifically included subpart (c) which had requested: "For any experience gained outside of Texas, provide
proof that Mr. Forero worked in a competitive electric or
gas market."
In response, Enron had provided the following response:
"Mr. Forero' s roles at The Williams Companies (Tulsa, OK), UBS AG
(Stamford, CT), and Constellation Energy (Baltimore, MD) all involved
active participation in competitive, deregulated electricity and gas
markets, including:
• NYISO: Structured and financed generation assets in New
York's competitive ISO market.
• CAISO: Managed and optimized deregulated tolling assets for
Southern California Edison.
• PJM: Marketed power products and hedges at Constellation to
retail and wholesale customers.
• ERCOT: At TXU, Mr. Forero managed load obligations and
hedging across ERCOT's deregulated power market, both pre- and post-deregulation (2001 onward).
These markets were subject to open access, retail choice, and
wholesale trading regimes consistent with competitive electricity
structures. Should the Commission require additional information of this
experience, Enron Energy can provide employment verification
documentation or affidavits."
Docket 57544
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June 16, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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