Texas Staff File Proposal to Allow Affiliate to Assume REP's Non-Volunteer POLR Obligation

Story edited at 11:27 a.m. ET to reflect the filing was a proposal for publication, not adoption. A filing this spring had been a strawman

Staff of the Public Utility Commission of Texas have filed a proposal for publication to allow a retail electric provider to assign its responsibility to serve as a Large Service Provider (LSP, aka non-volunteer POLR) to an affiliate.

The proposal for publication provides that an LSP may request the commission designate an LSP affiliate to provide POLR service on behalf of the LSP. The affiliate would be subject to the same eligibility qualifications for POLR service.

Staff, as well as ERCOT or a TDU, may challenge an LSP affiliate's eligibility to provide POLR service on behalf of an LSP.

"Designation of an affiliate to provide POLR service on behalf of 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," the draft provides.

"The methodology used by a designated LSP affiliate to calculate POLR rates shall be consistent with the methodology used to calculate LSP POLR rates in subsection (m) of this section," the draft provides.

"An LSP that has received commission approval to designate one of its affiliates to provide POLR service on behalf of the LSP pursuant to subsection (k) of this section shall retain responsibility for the provision of POLR service by the LSP affiliate and remains liable for violations of applicable laws and commission rules for all POLR service activities conducted on its behalf by the LSP affiliate," the draft provides.

"If the commission staff determines that an LSP affiliate 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 from the LSP affiliate to the LSP. The LSP will then be responsible for providing POLR service to ESI IDs that had been served by the LSP affiliate as well as any new POLR service," the draft provides.