ERCOT Moves Customers to POLRs After Texas Revokes Retail Provider's Certificate

ERCOT yesterday began moving the customers of Proton Energy to Providers of Last Resort, after the Public Utility Commission of Texas entered a consent order which revoked Proton's REP certificate.

ERCOT reported that the number of ESI IDs involved in the POLR drop is approximately 641, representing approximately 61 MWhs per day.

The consent order, part of a prior settlement between PUCT Staff and Proton (click here for details), called for certificate revocation if Proton did not timely file an application for a change in control. An application for a change in control was previously filed by Proton, but was subsequently withdrawn.

Counsel for Proton claimed during the open meeting that Proton had at least two "credible" buyers in the works, at least one of which was already certificated as a REP, and one which was not. Counsel for Proton cited "Affordable Energy" [sic] of Dallas as interested in the book.

However, citing Proton's history of non-compliance and missed deadlines, Commissioners during yesterday's open meeting were reluctant to grant the REP any additional time to execute a change in control or sell the customer book. Commissioners emphasized the severity of the original violations that were the basis for the prior settlement, including violations related to switch-holds and disconnections, as not meriting another chance for Proton, given the settlement already provided an opportunity for the company to execute a sale to prevent a POLR drop, which the company was unable to achieve.