Texas Retail Provider Negotiating To Enter Into Payment Plan With ERCOT, Asks PUC Not To Revoke Certificate

Texas retail electric provider GridPlus filed a letter with the Texas PUC stating, "This letter notifies Commission Staff of GridPlus's intent to enter into a payment plan covering GridPlus's outstanding obligations to ERCOT, and requests that Staff forebear from any initiatives to revoke GridPlus's REP certificate during the time such payment plan remains in effect (and while GridPlus is performing under the plan)."

GridPlus stated, "Given recent developments ... GridPlus entered into a transaction to sell its book of business to another provider. The customers have been transitioned successfully. While GridPlus does not serve any customers presently, it retains its REP certificate and hopes to sell the certificate in the future."

GridPlus's divestment of its retail electric customers had been first reported by EnergyChoiceMatters.com earlier this month

"Unfortunately, as has been the case with many other REPs and other market entities, the recent winter weather events and impacts on ERCOT power and other settlement costs has adversely affected GridPlus to the point where GridPlus has not been able to remain current on its ERCOT settlement obligations. Consistent with the Commission's February 21st Order in this Project, directing ERCOT to, among other things, '[d]eviate from protocol deadlines and timing related to settlements, collateral obligations, and invoice payments,' GridPlus and ERCOT are negotiating and plan to enter into a payment plan by which GridPlus can fully resolve its settlement obligations to ERCOT, using deadlines ERCOT established in the plan," GridPlus stated

"While the payment plan itself comes within the discretion that the February 21st Order conferred ERCOT to relax invoice payment deadlines, GridPlus requests that the Commission Staff confirm that GridPlus's performance under the plan will not subject it to revocation under 16 TAC § 25.107(j)(7), or otherwise. It is currently a condition of entering into payment plan with ERCOT that the Commission would refrain from taking enforcement action. To the extent a good cause showing is necessary, GridPlus would point to a number of important facts that should warrant retaining its certificate for the time being: GridPlus has not become bankrupt or insolvent, it continues to possess the requisite financial resources to maintain its certificate, it has not defaulted to any customers or TDSPs, it does not have any customers and has no intention of serving customers during the time it will be performing under this payment plan, it has not previously been the subject of any enforcement proceedings, and perhaps most importantly, the plan represents exactly the kind of extraordinary solution to market liquidity problems that the February 21st Order sought to encourage. GridPlus is working diligently with ERCOT to establish a payment plan and not default with ERCOT creating even greater uplift charges," GridPlus said