Texas Staff Propose Changes to REP Certification Rules

Staff of the Public Utility Commission of Texas have filed a draft proposal for publication to amend the REP certification rules to, among other things, provide an additional basis for the suspension or revocation of a REP certificate.

"The proposed amendments will clarify the definition of principal; modify the reporting requirement to extend the relevant time period for complaint history, disciplinary record, and compliance record; add an affidavit reporting requirement identifying all principals and current employees of the applicant REP that experienced a mass transition of a REP's customers to a provider of last resort (POLR); and provide additional bases for the suspension or revocation of a REP certificate," Staff said

Staff has also proposed a new standardized REP application and application amendment form.

Among other things, the modified Subst. R. §25.107 would define principal as, "An executive officer; partner; owner; director; a person with management or supervisory responsibilities; shareholder of a privately held company; shareholder of a publicly traded company who owns more than 5% of a class of equity securities; or an agent, a permanent employee, contractor, consultant, accountant, entity or person that controls the person in question."

Applicants would be required to submit an affidavit, "identifying all principals and current employees of the applicant that had a relationship with a REP that experienced a mass transition of the REP's customers to POLR. If such a relationship existed, the applicant shall include in the affidavit the name of the REP that experienced a mass transition of the REP's customers to POLR and provide factual statements as to whether and, if so, how the REP that experienced a mass transition of the REP's customers to POLR settled all outstanding obligations including the return of any owed customer deposits."

Under the draft changes, REP applicants would be required to disclose certain complaint, disciplinary, and compliance information from the prior 10 years, versus the current five years.

The draft proposal would also add to the definition of "significant violation", for which REP certification suspension or revocation may be pursued, as including, "Providing false or misleading information to the commission, including a failure to disclose any information required by this section."

Additionally, the draft would define as a significant violation the failure to comply with Subst. R. §25.272, relating to Code of Conduct for Electric Utilities and their Affiliates.

Project 41615