PUCT Staff Opposes Letter of Credit Waiver Sought by Clearview

PUCT Staff, in responsive testimony, has recommended that the Commission not grant Clearview Electric a waiver of the letter of credit requirements of Subst. R. 25.107, stating that Clearview has not established good cause for a waiver.

Though Staff had previously opposed the waiver request, Staff's responsive testimony represents its first formal position since the case was referred to SOAH and Clearview made its case in direct testimony.

Clearview is seeking a temporary waiver of the $500,000 letter of credit requirement given its small customer base of less than 100 customers in Texas, which has an average monthly billing total of just $9,500 (see 10/6).

"Clearview's circumstances are not unique and special, and its willingness to not add any new customers and to provide a smaller letter of credit is not a sufficient justification for a waiver," Staff testified. "Rather, these are new options invented and offered by Clearview that are not provided in the rules adopted by the Commission, and could be offered by any REP that has failed to meet the minimum requirements of P.U.C. Subst. R. 25.107," Staff said.

"[T]he letter-of-credit provision is the most important provision because it provides performance assurance to the Commission and tangible relief to customers and other market participants in the event of default," Staff added.