Smitherman Opposes Proposed REP Change in Control Provision

PUCT Chairman Barry Smitherman reiterated his opposition to draft proposed rule §25.107(i)(3), which would require Commission pre-approval for REP changes in control (37685). The Commission will consider Staff's draft proposal for adoption at today's open meeting (Matters, 10/8/10).

Smitherman cited a 2007 memo he authored outlining his belief that the Commission lacks authority under PURA to require such pre-approval.

Smitherman further cited policy reasons for his opposition.

"The addition of a prior approval requirement is a new, extreme change to the Commission's authority and to the competitive retail market. Rather than put a new rule into place that could inhibit transactions in the REP market, it seems appropriate at this point to refrain from further modifications and give the REPs an opportunity to 'digest' all the changes we have made over the last two years," Smitherman said.

"Finally, the Legislature comes to town in a little less than three months. On an issue like this where our statutory authority is at best questionable, it seems the better course of action [is] to allow the Legislature the opportunity to opine," Smitherman added.