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Texas Retail Provider Would Relinquish REP Certificate, With Unpaid TDU Balances, Under Settlement With PUC Staff
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TexPo Power, LP would relinquish its Texas retail electric provider certificate, and TexPo's letter of credit on file with the Texas PUC would be used to partially pay outstanding amounts owed by TexPo to the TDUs, under a settlement with Texas PUC Staff to resolve alleged violations of 16 Texas Administrative Code (TAC) § 25.107(k), concerning failure to comply with
the requirements necessary to maintain REP certification, including financial requirements
As previously reported by EnergyChoiceMatters.com, TexPo sold its customers to NRG in 2023
On July 17, 2024, TexPo voluntarily terminated its standard-form market participant
agreement (SFA) with the Electric Reliability Council of Texas (ERCOT). PUC Staff have verified that TexPo has no outstanding payment obligations to
ERCOT, and that TexPo has not defaulted on its obligations in the ERCOT electricity market under the
terms of the SFA.
TexPo did not experience a mass transition to a provider of last resort (POLR).
However, after the August 2023 sale of its customers, TexPo had failed to timely remit payments to TDUs in an aggregate amount of $1 million, with such balance still remaining outstanding
Certain TDUs had been authorized to require TexPo to post deposits with the TDU. Taking into account such deposits held by the TDUs, the amount owed to TDUs by TexPo is an aggregate of $685,000. The settlement would authorize the TDUs to use the deposits to offset any unpaid balances
TexPo had previously filed a $500,000 letter of credit with the PUC
However, due to REP certification rule changes, TexPo was required to increase the letter of credit to $750,000 (or meet one of the other means of satisfying the financial requirements set forth in rule)
The settlement states that, to date, TexPo has not filed a $750,000 letter of credit compliant with the requirements of current
16 TAC § 25.107(f)(1)(B)(i).
PUC Staff have already drawn on TexPo's existing $500,000 letter of credit.
Under the settlement, and consistent with the rule's waterfall provision for the use REP security, this $500,000 letter of credit would be used to pay TexPo's unpaid TDU balances (which exceed $500,000 as noted above)
Commission Staff recommends that each TDU receive payment in the amount of
approximately $0.73 per dollar of debt that remains outstanding after the application of
any available cash deposits from TexPo held by the TDUs
The settlement would not include any administrative penalty to TexPo
As previously reported, TexPo had already filed to relinquish its Texas REP certificate
Docket 59416
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April 1, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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