Texas Staff, Retail Provider Enter Settlement, Consent Order Regarding Certificate Revocation

Staff of the Public Utility Commission of Texas and Weir Investments Fund, LLC d/b/a Apollo Power & Light have entered into a settlement agreement to resolve and conclude an investigation of Apollo for failure to maintain the technical resources and ability to provide continuous and reliable electric service to customers, as required by P.U.C. SUBST. R. 25.107(g).

Under the agreement, Apollo acknowledges that it no longer has the technical resources and ability to provide continuous and reliable electric service to customers, as required by P.U.C. SUBST. R. 25.107(g).

As first reported by Matters, Apollo had previously ceased serving customers this spring after transferring its customers to Acacia Energy.

On June 22, 2012, Apollo filed with the Commission an application for amendment to its REP certification in P.U.C. Docket No. 40505, notifying the Commission of its cessation of operations and seeking to suspend its REP certificate. The application indicated that Apollo was no longer serving customers at the time the application was filed.

On July 11, 2012, Apollo submitted a letter to the Electric Reliability Council of Texas terminating the Standard Form Market Participant Agreement (SFA) between Apollo and ERCOT. Pursuant to the termination notice provisions in the SFA, Apollo's termination became effective on August 10, 2012.

"By terminating its SFA with ERCOT, Apollo no longer met the REP certification requirements of P.U.C. SUBST. R. 25.107(g) because it did not have the technical resources and ability to provide continuous and reliable electric service to customers," the settlement agreement provides.

On August 6, 2012, the Commission granted administrative approval of Apollo's application and suspended Apollo's REP Certificate No. 10173.

Under the settlement, Apollo has agreed to divest all ownership and control of REP Certificate No. 10173 upon Commission approval of a transfer of ownership of its REP certificate from Apollo to Beneficial Power, LLC in P.U.C. Docket No. 40673.

The sought acquisition of the Apollo certificate by Beneficial Power had been first reported by Matters.

Under the settlement, if the transfer of ownership to Beneficial is denied by the Commission, Apollo and Staff agree that Apollo will relinquish its REP Certificate No. 10173 within 14 days thereafter, and, in the event Apollo has not relinquished its certificate as described, the parties agree to the automatic entry of an Agreed Consent Order revoking REP Certificate No. 10173.

Staff agrees that if Apollo complies with the terms of the agreement and the Commission approves of a transfer of ownership to Beneficial in P.U.C. Docket No. 40673, then Staff will not pursue revocation of REP Certificate No. 10173.