ERCOT Confirms Default of Retail Provider, POLR Mass Transition Averted

ERCOT said in comments to the Public Utility Commission of Texas that on March 18, 2016, TruSmart Energy, LLC defaulted on its financial obligations to ERCOT under the ERCOT Protocols, which resulted in the termination of TruSmart's Standard Form Market Participant Agreement (SFA) with ERCOT.

ERCOT reported that prior to the time of default, TruSmart had entered into agreements with two Retail Electric Providers (REPs) to transfer all of TruSmart's ESI IDs to the two REPs. Transfers of TruSmart's Customers to the two designated REPs commenced prior to the time of default, and therefore, ERCOT did not initiate the Mass Transition process.

EnergyChoiceMatters.com exclusively reported last month that Now Power had acquired TruSmart's prepay and weekly/biweekly product customer contract portfolio (about 2,900 customers), but that such book did not represent the entirety of TruSmart's customer base

ERCOT said that it is currently in the process of accounting for any losses incurred by ERCOT and/or the ERCOT Market as a result of TruSmart's default.

As previously reported, 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, as Staff alleged that TruSmart defaulted under the terms of the tariffs for retail electric delivery service with five TDUs in the ERCOT Market.