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PUCT Staff Reach Settlement Agreement to Revoke REP Certificate for Financial Obligation Violations
On April 2, 2026 the PUCT Commission issued an order in “the agreement between Commission Staff and Declaration Energy, LLC relating to Commission Staff’s investigation of Declaration for violations of 16 Texas Administrative Code (TAC) § 25.107, related to financial obligations of retail electric providers (REPs). The agreement also serves as a report to the Commission under 16 TAC § 22.246(h)(1).”
Under the terms of the agreement, Declaration agrees with Commission Staff s recommendation that its REP certificate number 10281 be revoked and that the proceeds of Declaration’s letter of credit be disbursed in accordance with the order of priority established under 16 TAC § 25.107(f)(6)(A). For the reasons identified in this Order, the Commission revokes Declaration’s REP certificate number 10281, approves the disbursement of the proceeds of Declaration’s letter of credit, and orders Commission Staff to conduct the disbursement of proceeds.”
Violations
In March 2024, Declaration failed to timely remit payment for invoiced charges to the following transmission and distribution utilities (TDUs): AEP Texas, Inc.; CenterPoint Energy Houston Electric, LLC; Oncor Electric Delivery Company, LLC; and Texas-New Mexico Power Company (TNMP) (collectively, the TDUs). 14. To date, Declaration has failed to remit payment to the TDUs for the following invoiced obligations, pursuant to the terms of each TDU’s respective tariff:
TDU Outstanding Charges
AEP Texas $234,687.51
CenterPoint $1,316,945.66
Oncor $2,092,041.83
TNMP $226,037.19
Total: $3,869,712.19
From the Agreement:
- Declaration cooperated with Commission Staff during the investigation.
- Declaration acknowledges the bases for the violations detailed in this Order.
- On January 29, 2026, Commission Staff and Declaration entered into an agreement in which Commission Staff recommended, and Declaration agreed, to the revocation of Declaration’s REP certificate number 10281 and the disbursement of the proceeds of Declaration’s letter ofcredit, consistent with the order of priority established under 16 TAC § 25.107*(6)(A).
- Commission Staff recommends and Declaration agrees to the following: (a)Because Declaration did not experience a mass transition to POLR, there is no party to whom proceeds from its letter of credit should be disbursed. (b) Because Declaration does not owe any outstanding balance to ERCOT, no proceeds from its letter of credit should be disbursed to ERCOT; and (c) The entirety of the proceeds from Declaration’s letter of credit should be disbursed to the TDUs in the following amounts:
TDU Amount Owed Amount Distributed
AEP Texas $234,687.51 $30,323.64
CenterPoint $1,316,945.66 $170,160.67
Oncor $2,092,041.83 $270,309.75
TNMP $226,037.19 $ 29,205.94
Total: $3.869.712.19 $500.000.00
d. Because the proceeds from the letter of credit will be exhausted and Commission Staff does not seek the imposition of an administrative penalty in this proceeding, no amount of the letter of credit will be paid for services provided by the independent organization related to serving customer load.
e. Within ten days after entry of this Order, Commission Staff will disburse the proceeds received from Declaration’s letter of credit in the manner detailed above for the purpose of reducing outstanding debt to the TDUs.
f. In return for Declaration’s surrender of the proceeds from its letter of credit and exit from the ERCOT retail market, Commission Staff agrees to close its investigation of Declaration without the recommendation of an administrative penalty.
