|
|
|
|
|
Texas PUC Staff, REP File Settlement Concerning REP's Exit From Market
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
The Staff of the Public Utility Commission of Texas and OnPoint
Energy Texas, LLC (OnPoint) have entered into a new settlement agreement concerning OnPoint's exit from the retail electric market
The settlement largely mirrors an earlier settlement, except that, under the new settlement, OnPoint's REP certificate would be revoked, rather than being relinquished as would have occurred under the prior settlement
The PUC had rejected the earlier settlement as the PUC had found that the Commission could not draw on OnPoint's letter of credit, as contemplated by the original settlement in order to pay a portion of outstanding amounts owed to the TDUs, under a certificate relinquishment, and that such a draw could only occur under a revocation
See a full background on the matter and circumstances relating to OnPoint's exit here
The new settlement filed on October 1 states, "OnPoint committed significant violations of Commission rules under 16 TAC
§§ 25.107(k)(7) and (16) by failing to meet financial obligations on a reasonable and timely
basis and by failing to timely remit payment to transmission and distribution utilities
(TDUs)."
The new settlement states, "In late 2023 and early 2024, OnPoint experienced a 'liquidity crisis' that posed a
significant challenge to its ability to continue serving customers while meeting its financial
obligations as a REP.
Amidst this, on January 30, 2024, OnPoint sold its customer contracts to another REP,
Good Charlie & Co., LLC (Good Charlie), in an effort to protect its customers from the
possibility of a mass transition to providers of last resort (POLR)."
All customer deposits and residential advance payments held by OnPoint at the time of the
transfer were transferred to Good Charlie and credited to their accounts with Good Charlie,
pursuant to the terms of the transaction.
OnPoint no longer serves any customers or conducts any activity as a REP.
The new settlement notes that OnPoint did not experience a mass transition to POLR and has no financial obligation to
any POLR provider.
The new settlement notes that PUC Staff has verified that OnPoint does not owe any outstanding balance to
ERCOT and has not defaulted on its obligations to ERCOT under the terms of its standard form
market participant agreement (SFA).
The settlement states that, to date, OnPoint has failed to remit payment to the TDUs for approximately $1.3 million in invoices
The settlement states that Commission Staff recommends, and OnPoint agrees, that the proceeds from OnPoint’s
financial resources maintained under 16 TAC § 25.107(f)(1)(B) (a $500,000 letter of credit) should be used to satisfy
outstanding debts, consistent with 16 TAC § 25.107(f)(6)(A).
OnPoint previously authorized PUC Staff to draw on its $500,000 letter of
credit, and PUC Staff currently holds the $500,000 proceeds from OnPoint’s letter of credit,
pending a Commission order approving disbursement
Commission Staff proposes to disburse the proceeds of OnPoint’s letter of credit
consistent with the order of priority established under 16 TAC § 25.107(f)(6)(A). This would provide to each TDU payment in the amount of approximately $0.3787 per dollar owed, exhausting the proceeds of the letter of credit
Under the new settlement, Commission Staff recommends, and OnPoint agrees, that OnPoint’s REP certificate
number 10326 should be revoked under PURA § 39.356(a) and 16 TAC § 25.107(k).
The new settlement provides, "This agreement resolves all matters related to OnPoint’s violations of 16 TAC
§§ 25.107(k)(7) and (16)."
The new settlement provides that PUC Staff will not seek any administrative penalties from OnPoint for the
matters addressed in the new settlement.
Docket 58756
ADVERTISEMENT Copyright 2025 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
October 1, 2025
Email This Story
Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW -- Account Executive (Commercial Retail Energy)
|
|
|
|
|