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Texas PUC Staff Recommend Denial Of Retail Provider's Sought Amendment Reflecting Change In Ownership
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Staff of the Texas PUC have recommended that the PUC deny an amendment to the retail electric provider certificate of EE REP 2, LLC f/k/a MI Texas REP 2, LLC. The amendment was sought by EE REP 2, LLC to reflect, among other things, a change in ownership and control, including changes to the individuals on which the REP will rely to satisfy technical and managerial qualifications
As first reported by EnergyChoiceMatters.com, as of September 1, 2025, MI Texas REP 2, LLC experienced a change in ownership and control. The new owner and direct parent company of MI Texas REP 2, LLC is Elevate Energy, LLC (which holds Texas REP Certificate No. 10353 and which is part of Energywell).
MI Texas REP 2, LLC has changed its legal name to EE REP 2, LLC
PUCT Staff requested that EE REP 2’s application to amend its REP certificate be denied because Staff alleged that, "the application relies on persons prohibited from exercising control [of a REP] under 16 TAC § 25.107(g)(1)(A) to meet the requirements of subsections (d) and (e) [of the certification rules]."
16 TAC § 25.107(g)(1)(A)(i-iii) provides that, "[i]n no instance may any of the following persons control the REP or be relied upon to meet the requirements of subsections (d) and (e) of this section: (A) A person who was a principal of a market participant, at any time within the six months prior to the market participant: (i) experiencing a mass transition of the REP’s customers under §25.43 of this title; (ii) having their ERCOT SFA, or similar agreement for an independent organization other than ERCOT terminated; or (iii) exiting an electricity or gas market with outstanding payment obligations that, at the time of the application or amendment, remain outstanding."
Staff said, "Subsection (g) creates a strict prohibition by explicitly stating 'in no instance' can persons in the categories described [in rule] serve as principals of an Option 1 REP. Accordingly, Staff recommends that the application be denied."
Staff said that, for attachment D-2, on which REPs are required to list the individuals on whom the REP will rely to meet the requirements for prior competitive electric or gas industry experience, EE REP 2 listed Tom McGinn and Marilee Stewart
Based on the public portion of EE REP 2's application, it does not appear that EE REP 2 listed any other individuals under attachment D-2
Staff alleged, "Both, Mr. Tom McGinn and Ms. Marilee Stewart were principals for Griddy Energy LLC, which had its REP certificate revoked by the Commission in Docket No. 51859 on August 4, 2022, following a mass transition of the company’s customers under 16 TAC § 25.43(l)."
Staff said, "Therefore, they cannot be used to meet the requirements of 16 TAC § 25.107(d) or (e)".
As noted above, Staff in one instance cites the prohibition on certain individuals serving as "principals" of a REP
However, Staff does not explicitly state that Staff believes that Tom McGinn or Marilee Stewart are "principals" of EE REP 2, LLC
Additionally, Staff does not appear to allege that Tom McGinn or Marilee Stewart "control" EE REP 2, LLC
Rather, a memo accompanying Staff's recommendation cites the rule's prohibition on a REP relying on a prohibited individual from meeting the general REP requirements, the technical and managerial requirements, and the past retail energy market experience requirements, under 16 TAC § 25.107(d) and (e)
Thus, to the extent the PUC agrees with Staff's position that the cited individuals are prohibited individuals, it appears that the issue could be resolved by EE REP 2 designating other individuals to meet the technical and managerial requirements of 16 TAC § 25.107(d) and (e)
Still, the proceeding could have the potential to set precedent concerning how the PUC treats REP amendments which are denied, but for which the underlying actions have already taken place
REPs in Texas are not required to receive pre-approval for material change amendments, such as new ownership
REPs, however, ultimately must file for an amendment to their REP certificate to reflect material changes (such as an ownership change). REPs must file for an amendment within 10 working days after the material change having occurred
Such policy creates a situation in which the material change may have already occurred, but the PUC later denies approval of the necessary certificate amendment reflecting the change, though such situations are rare (if ever occurring at all)
Docket 58646
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November 4, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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