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PUCT Staff Confirms PUC May Draw On REP’s Letter of Credit Without Revoking REP’s Certificate
In Texas PUC Staff’s Joint Response To Order No. 1 Requiring Clarification confirms that TexPo seeks to relinquish its REP certificate, with the consent of Commission Staff, pursuant to the parties’ settlement agreement filed on April 1, 2026.
The parties assert that the Commission is expressly authorized to draw on TexPo’ s letter of credit as contemplated by the settlement agreement, and without an order revoking TexPo’ s REP certificate, under 16 TAC § 25.107(f)(5)(D).”
On April 13, 2026, the administrative law judge (ALJ) issued Order No. 1. in this proceeding asserting that, under 16 TAC § 25.107(f)(5), “the Commission is allowed to draw on a financial instrument if the Commission issues an order revoking a REP’ s certificate, not upon a voluntary relinquishment.”1 Order No. 1 requires the parties to clarify, by April 20,2026, whether TexPo seeks to relinquish its REP certificate with Commission Staff’ s consent, or whether Commission Staff seeks to revoke TexPo’ s REP certificate with TexPo’ s consent. If TexPo seeks approval to voluntarily relinquish its REP certificate, Order No. 1 further requires the parties to identify, by April 20, 2026, the rule or statute that allows the Commission to draw upon TexPo’ s letter of credit and distribute the proceeds. Therefore, this pleading is timely filed.
