Texas Staff Recommend REP's Letter of Credit Be Drawn Upon to Pay TDU Debts

Staff of the Public Utility Commission of Texas have recommended that proceeds from the letter of credit provided by Reach Energy, LLC be distributed to the transmission and distribution utilities to cover outstanding debts, with any remaining balance returned to Reach Energy.

Reach Energy exited the market in the spring, with the majority of its customers assumed by another REP (click here for details). Reach recently filed to relinquish its REP certificate. The TDUs have said that they are owed various debts from Reach.

Staff recommended that proceeds from the $510,000 Reach letters of credit should be disbursed as follows:

CenterPoint TDU      $315,628.82
TNMP                 $ 10,871.95
AEP TCC              $ 33,034.01
AEP TNC              $  2,037.02
Oncor                $ 97,320.26
Reach                Any remaining amount

Docket 42778