Texas Staff Alleges Retail Provider Not In Compliance With Financial Capital Requirements

Staff of the Public Utility Commission of Texas have alleged that Jade Energy, LLC is not in compliance with the requirement to maintain certain financial resources under 16 TAC § 25.107(f).

Staff's allegations were not in the form of a formal or official Notice of Violation. Rather, Staff made the allegations in commenting on whether an application for a REP certificate amendment filed by Jade, to reflect a change in technical and managerial qualifications, was sufficient for review (Staff deemed the application insufficient for allegedly not showing that Jade Energy is in compliance with 16 TAC § 25.107(g), regarding capabilities and combined experience of technical and managerial personnel).

Staff further alleged that, "Jade Energy has failed to comply with ongoing requirements to maintain REP certification, including filing annual reports and maintaining financial resources in the form of a letter of credit."

Specifically, Staff said that, "16 TAC § 25.107(j)(6) provides that a REP certificate is subject to suspension or revocation if the REP fails to maintain financial resources required by 16 TAC § 25.107(f)."

Staff alleged that, "Staff has confirmed that Jade's letter of credit, required under 16 TAC § 25.107(f)(1), has lapsed."

Staff said that, "16 TAC § 25.107(i)(5) provides that an Option 1 REP must file an annual report by March 5, or 65 days after the REP's fiscal year, and a semi-annual report by August 15, or 225 days after the end of the REP's fiscal year."

Staff alleged that, "Staff has confirmed that Jade has not filed the required annual or semi-annual reports."

Staff requested, "that Jade Energy be given 30 days to cure the deficiencies in its Application and come into compliance with the ongoing requirements to maintain REP certification."