Texas Staff Recommend Denial of Proton Energy Sale-Driven Certificate Amendment, Allege Sale Not Bona Fide

Staff of the Public Utility Commission of Texas have recommended that the Commission deny Proton Energy's application for an amended REP certificate to reflect a change in control.

Under a prior settlement, Proton Energy was required to undergo a change in control in order to continue operations as a REP (click here for background).

Certain specific details of Staff's recommendation were redacted due to confidential information; however, Staff alleged that Proton Energy failed to disclose information regarding one of Proton Energy's proposed principals, and alleged that Proton Energy failed to disclose that an individual (redacted) was previously employed as the Vice President of Operations and Customer Care of a retail electric provider (redacted) that experienced a mass transition of its customers to a provider of last resort (POLR) and, later, had its REP certificate revoked by the Commission.

Staff further alleged that Proton failed to disclose an individual's (redacted) affiliation with a redacted company, and its disciplinary history.

Staff alleged that once one of the individual's experience is excluded, Proton Energy's proposed principals or permanent employees do not have the required fifteen years of technical and managerial experience.

Staff also alleged that Proton Energy does not have the required $1 million in shareholder equity and a $500,000 letter of credit.

Finally, Staff alleged that the information and documents provided by Mohamed Amin Dossani, one of Proton's publicly identified proposed new principals, "do not show that Proton Energy has entered into a bona fide sale transaction, as required by the Commission-approved settlement agreement in Docket No. 41848."

"Proton Energy has not produced documents that show a deliberate effort by Proton Energy to market itself, or to engage in substantive negotiations with potential purchasers," Staff alleged, with further redacted arguments implying that the proposed sale price bolsters the allegation that the sale is not bona fide.

"Just as problematic is that Proton Energy proposes to conduct its business operations at 1050 North University, Fort Worth, Texas. This is the same address listed for Trishell, LLC and TAJANI OIL INC., two businesses in which Mr. Ali, the current owner of Proton Energy, serves as President and Director," Staff alleged.

Under the prior settlement, if Proton does not undergo a change in control, a consent order revoking Proton's REP certificate will take effect.

Docket 42450