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

Staff of the Public Utility Commission of Texas have filed a draft order to adopt revised Provider of Last Resort rules (Subst. R. 25.43) 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 draft proposal for adoption does not contain any major revisions from the proposal for publication issued in August.

"An LSP may request the commission designate an LSP affiliate to provide POLR service on behalf of the LSP," Staff's proposal for adoption states.

"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," Staff's proposal for adoption states.

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

"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," Staff's proposal for adoption states.