PUCT Declines to Require Pre-approval for REP Changes in Control

Updated October 25, 2010

The PUCT declined to modify the REP certification rules to provide that a REP must seek pre-approval for the change in control of a REP or REP certificate (Project 37685).

Chairman Barry Smitherman and Commissioner Donna Nelson expressed concerns with adopting sweeping changes to the certification rules given the extensive changes to certification recently adopted in response to the 2008 POLR mass transitions. Smitherman also raised concerns regarding the Commission's authority under PURA to require pre-approval for a change in control.

Consistent with a Staff recommendation, the Commission also declined to modify the current limit of five trade names which may be used by a REP.

The Commission adopted limited changes to the certification rule, including:

• Creation of an Option 3 REP category for a REP that sells electricity exclusively to a retail customer other than a small commercial and residential customer from a distributed generation facility located on a site controlled by that customer
• Clarification that the Commission can draw upon a REP's letter of credit upon certificate revocation
• Defining the placement of an erroneous switch hold, or failure to timely remove a switch hold, as a significant violation in terms of considering certificate suspension or revocation.