Texas Staff File Strawman for Changes to POLR Rule

Staff of the Public Utility Commission of Texas have filed a strawman for potential changes to PUC Subst. R. 25.43, relating to Provider of Last Resort (POLR), for the limited purpose of allowing a Large Service Provider (LSP), also known as a non-volunteer POLR, to request that the commission designate another REP that is affiliated with the LSP and meets certain criteria to provide POLR service on behalf of the LSP.

Specifically, the strawman would provide that an LSP may, either prior to or during its two-year POLR term, request that the Commission designate an affiliate to provide POLR service on behalf of the LSP.

The request shall include the name and certificate number of the affiliate, information demonstrating the affiliation, and certified agreement from an officer of the affiliate that the affiliate agrees to provide POLR service on behalf of the LSP.

Commission Staff shall make an initial determination of the eligibility of the affiliate REP to provide POLR service on behalf of an LSP. The LSP or affiliate REP, as well as a TDU or ERCOT, may challenge Staff's eligibility determination.

Designation of an affiliate to provide POLR service on behalf on an LSP shall not change the number of ESI IDs served or the retail sales in megawatt-hours for the LSP for the reporting period nor does such designation relieve the LSP of its POLR service obligations in the event that the LSP affiliate fails to provide POLR service in accordance with the Commission rules.

If an affiliated REP designated to provide POLR service on behalf of an LSP fails to meet the POLR service requirements, the obligation to provide POLR service shall revert back to the LSP. The LSP shall provide the Commission written notice of a reversion of POLR service from the affiliate REP to the LSP at least 30 days prior to such reversion.

Project 41277