Proposed Order Would Revoke TexRep6 Certificate

A proposal for decision would revoke the Texas REP certificate of TexRep6, LLC, for failure to comply with provisions of the new certification requirements of Subst. R. 25.107 for several months after the compliance deadline.

TexRep6 was previously purchased by IC&T Americas, LLC, which is now known as Smartcom Energy Technologies, LLC.

Staff's petition to revoke TexRep6's certificate was first reported in Matters (10/14).

The ALJ noted that TexRep6 admitted that it, "was not in compliance as of May 21, 2010," with several of the requirements of Subst. R. 25.107.

Moreover, the ALJ would include as a finding of fact that TexRep6 has still not provided evidence of either (1) an investment grade credit rating, (2) tangible net worth of at least $100 million, or (3) shareholder' equity of not less than $1 million and an irrevocable stand-by letter of credit of $500,000.

Although TexRep6 has now shown compliance with the segregated cash account requirement and has submitted information to show compliance with the risk management requirements, "the first of these was not presented until nearly five months after the deadline imposed by the Commission's rules, and the second was not presented until nearly nine months after that deadline," the ALJ said.

"This is a case of too little, too late," the ALJ added.

"TexRep6's actions constitute little more than more promises and optimism, but no evidence of compliance. The violations existed at May 22, 2010. They are significant violations, and they justify revocation of TexRep6's certificate" the ALJ concluded.

Accordingly, the ALJ would revoke TexRep6's certificate.