Texas Retail Provider Sells Customer Book; PUCT Staff Seeks Revocation of REP's Certificate

Texas retail provider TruSmart Energy has informed customers that TruSmart has reached an agreement for the sale of its Prepay and Weekly/BiWeekly product customer contract portfolio to Now Power (a trade name of Brooklet Energy Distribution).

TruSmart Energy informed its Prepay and Smart Pay Weekly/Biweekly customers that they will receive service from Now Power with no change in the customer's rate.

On March 21, Staff of the Public Utility Commission of Texas (PUCT) filed a petition under Docket 45749 to revoke the retail electric provider (REP) certificate of TruSmart Energy, LLC

In the March 21 petition, PUCT Staff alleged, "Based on information provided to Commission Staff by TruSmart and various transmission and distribution utilities (TDUs), Commission Staff believes that TruSmart has defaulted under the terms of its tariffs for retail electric delivery service (Tariff) with five TDUs in the ERCOT Market."

In the March 21 petition, PUCT Staff alleged that, "TruSmart's default relates to the following sections of the Tariff. Section 4.4.5 of the Tariff, related to remittance of invoiced charges, states that '[p]ayments for all Delivery Charges invoiced to Competitive Retailer shall be due 35 calendar days after the date of Company's transmittal of a Valid Invoice.' Section 4.4.6, related to delinquent payments, states that '[p]ayments for Delivery Charges invoiced to Competitive Retailer shall be considered delinquent if not received by 5:00 p.m. CPT of the due date stated on the Valid Invoice' and that a default occurs 'after a ten calendar day grace period has passed without the Competitive Retailer fully paying the delinquent balance.' Section 4.6.1 states that: 'A Competitive Retailer shall be considered to be in default under [the] Tariff if the Competitive Retailer: (1) Fails to remit payment to the Company as set forth in Section 4.4.6, DELINQUENT PAYMENTS; (2) Fails to satisfy any material obligation under this Tariff, including failure to fulfill the security requirements set forth in Section 4.5, SECURITY DEPOSITS AND CREDITWORTHINESS; or (3) Is no longer certified as a Retail Electric Provider.'"

"Further, Commission Staff has been informed that as of the filing of this Petition, this default has not been cured and that it caused significant financial harm to TDUs," PUCT Staff alleged in the March 21 petition

In the March 21 petition, PUCT Staff said that, "Commission Staff has initiated the instant petition to (1) revoke the REP certificate held by TruSmart; (2) identify claims against the financial resources relied upon by TruSmart in obtaining its REP certificate; and (3) proceed against any financial resources that TruSmart relied on to obtain its REP certification pursuant to 16 TAC § 25.107(f) and (i)(7)."

Citing the alleged default by TruSmart under the delivery tariffs, PUCT Staff alleged in the March 21 petition, "The Commission should revoke the REP certificate of TruSmart because TruSmart committed significant violations of PURA and Commission rules, and no longer has the capability to provide continuous and reliable electric service to its customers."

The March 21 PUCT Staff petition is not final, and TruSmart may request a hearing to contest the petition.