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Updated: New Texas Nonprofit Co-op Seeks To Serve Retail Customers At TDUs Without REP Certificate Or CCN
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Roshan Energy, which describes itself as a "Nonprofit Electric Cooperative", has filed additional materials with the Texas PUC indicating that Roshan Energy seeks to serve retail electric customers without Roshan being required to obtain a REP certificate or a CCN.
Under Roshan Energy's sought model, which Roshan has described as "retail electric service," the Roshan Energy retail customers, who would join the co-op as members, would be located within and taking delivery service from the five large TDUs in ERCOT
Roshan Energy indicates that Roshan would purchase the electricity to serve customers at the ERCOT market clearing price, and noted that certain PUC administration may be needed for, "ERCOT coordination," suggesting that Roshan Energy seeks to serve load, and would not, in contrast, simply be serving customers as a broker, aggregator, or similar non-LSE entity
As previously reported, Roshan Energy, Inc. said that it is a Texas nonprofit corporation in formation as a 501(c)(12) electric cooperative under Texas Utilities Code Chapter 161
Texas Utilities Code Chapter 161, which governs electric cooperative corporations, authorizes co-ops to acquire, own, hold, maintain, exchange, or use, "transmission and distribution lines or systems that are necessary, convenient, or useful[.]"
A cop-op may, "generate, acquire, and accumulate electric energy and transmit, distribute, sell, furnish, and dispose of that electric energy to its members only".
Texas Utilities Code Chapter 161 also provides that cop-ops may, "perform any other acts for the cooperative or its members or for another electric cooperative or its members, and exercise any other power, that may be necessary, convenient, or appropriate to accomplish the purpose for which the cooperative is organized, including other or additional purposes that benefit members and nonmembers, either directly or through affiliates, described in Section A, Article 2.01, Texas Non-Profit Corporation Act (Article 1396-2.01, Vernon's Texas Civil Statutes)."
Roshan Energy in a PUC filing clarified that Roshan Energy does not seek certification as a Retail Electric Provider (REP) under PURA §39.352 or
16 TAC §25.107, nor any other formal relief requiring a Commission-prescribed application
form.
Roshan
Energy said, "As a nonprofit electric cooperative under Chapter 161, we are exempt from REP
certification requirements because electric cooperatives are excluded from the definition of
'person' in 16 TAC §25.107."
Roshan
Energy said, "Additionally, we are not an 'electric utility' under PURA
§31.002(6), and thus exempt from CCN requirements under PURA §37.051."
Roshan
Energy said, "Our operations are
consistent with the powers granted under Texas Utilities Code §161.121 and exemptions from
PUCT regulation under §161.122, as we will serve only our members in a cooperative structure."
Roshan
Energy stated, "Roshan Energy, a nonprofit electric cooperative, will serve approximately 15,000 households and 3,000
businesses in the Ismaili community within the Dallas-Fort Worth (DFW) and Greater Houston areas.
Service will utilize five TDSP territories in the ERCOT grid, buying wholesale energy at ~3¢/kWh and
selling at 14¢/kWh without owning infrastructure. Membership eligibility will be verified by address/ZIP
code."
Roshan
Energy requested confirmation from the Texas PUC that Roshan Energy, as a Chapter 161 electric
cooperative, is exempt from REP certification and CCN requirements and may proceed
with retail electric service to its members without further PUCT approval.
Roshan Energy further stated, "Roshan Energy is a 100% nonprofit electric cooperative organized and incorporated under Texas
Utilities Code Chapter 161 to provide affordable retail electric service exclusively to our
members, who are part of the Ismaili community (approximately 15,000 households and 3,000
businesses) in the Dallas and Houston areas. Our mission is member-focused: offering standard
electricity plans at 14¢/kWh (saving members ~$120/year compared to market rates of
15¢/kWh), purchasing energy at the ERCOT market clearing price (~3¢/kWh) through five
Transmission and Distribution Service Providers (TDSPs): Oncor, CenterPoint, AEP Texas
North, AEP Texas Central, and Texas-New Mexico Power. All profits, after maintaining a $1M
reserve, are donated to the Aga Khan Foundation. We are governed by a 10-member Board of
Directors, with leadership including Ramzan Ali (President, 6 years of prior REP experience &
Risk Management), Sadru Sarfani (Vice President 2 Years Experience in My Quest Energy), and
Faizan Sarfani (Secretary & 7 years Experience in Risk Management). Additional features
include community remote job creation, training/support for members starting energy-related
businesses, and AI-assisted customer service (using Grok) to minimize costs."
Roshan Energy said that it is prepared to maintain a $10,000 bond for customer protections in lieu of standard
REP financial requirements (e.g., the $750K letter of credit under 16 TAC §25.107), "consistent
with our exempt status."
The management of Roshan Energy includes Ramzan Ali (President), Faizan Sarfani, and Sadruddin Sarfani (with each being a director).
Roshan Energy's filing states that Ramzan Ali served as a Risk Management and Scheduling Analyst at "Proton Energy" from 2014 to 2019, and as a Risk Management and Scheduling Specialist at "My Quest Energy" from 2019 to 2022. Ramzan Ali also previously owned and operated several convenience stores and appliance stores
A retail electric provider named Proton Energy had its Texas REP certificate revoked in 2014. A retail electric provider named My Quest Energy had its Texas REP certificate revoked in 2022
Roshan Energy's filing states that Sadruddin Sarfani founded "My Quest Energy", and held a position at My Quest Energy through 2020 (such 2020 end date is prior to the initiation of a post-Uri petition from PUCT Staff which ultimately led to the revocation of the REP certificate held by the REP My Quest Energy). Sadruddin Sarfani is also engaged in various other enterprises including commercial real estate, construction, convenience stores, and franchised fast food ownership
Roshan Energy stated that, "all profits, after maintaining a $1M
reserve, are donated to the Aga Khan Foundation."
Roshan Energy illustrated the policy as follows:
Profit Allocation Policy:
• Initial Donation: 100% of net profit, after deducting office expenses and payroll, is donated to
the Aga Khan Foundation (AKF).
• Loan Mechanism: An equivalent amount to the donated profit is borrowed back from AKF as a
loan to Roshan Energy.
• Interest Expense: The loan accrues interest at a fixed rate of 7% annually, payable to AKF, until a
reserve fund reaches $1,000,000.
• Reserve Fund Accumulation: Loan proceeds and operational cash flows are retained to build a
reserve fund. Interest payments (7% on the outstanding loan balance) are recorded as an
expense, reducing net profit available for donation.
• Post-Reserve Donation: Once the reserve fund attains $1,000,000, 100% of net profit, plus 7%
interest on the $1,000,000 reserve, will be donated to AKF annually.
"If the Commission determines that any certification, registration, or other approval is needed
based on our structure or operations, we respectfully request specific guidance on the appropriate
process," Roshan Energy stated
Docket 58844
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October 24, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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