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Energywell Texas, LLC withdraws its application for a Texas retail electric provider (REP) certificate after the Texas PUC denied an appeal of an ALJ’s order that had denied a request from Energywell Texas for a good cause exception to the PUC’s rule.  The rule waiver provision provides that a REP may not be controlled by an individual who, within 6 months prior to the relevant event(s) occurring, was a principal at a REP which either (1) experienced an involuntary mass transition, (2) had its ERCOT standard form market participant agreement terminated, or (3) exited a market with outstanding financial obligations that remain outstanding (16 TAC § 25.107(g))

As previously reported, Energywell Texas, LLC, part of the Energywell family of companies, had applied for an Option 1 Texas retail electric provider certificate.

In its application, Energywell Texas, LLC noted that certain of its principals — namely Michael Fallquist, Roop Bhullar, and Christian McArthur — were principals of Griddy Energy, LLC, which was subject to an involuntary mass transition of its customers to POLRs in the wake of Winter Storm Uri, and which had its ERCOT market participant rights revoked.

Energywell Texas, LLC had sought a waiver of 16 TAC § 25.107(g) under 16 TAC 25.3(b), which Energywell Texas said allows the PUC to make exceptions to the rules in Chapter 25 for good cause.

“Applicant believes that the unprecedented circumstances surrounding the events related to Winter Storm Uri, and the actions taken in response by the principals of this Applicant during that time, provide the good cause required to grant the requested waiver.” 

An ALJ had initially denied Energywell Texas’ petition for the good cause exception. Energywell Texas appealed this ruling to the PUC.

The PUC ultimately denied Energywell Texas’s appeal in a unanimous 4-0 vote (Chair Thomas Gleeson was recused from the docket).

The PUC generally adopted the reasoning of Commissioner Lori Cobos, who said in a memo that the REP certification rule took the “extraordinary” step of stating explicitly that, “in no instance”, shall a REP be controlled by an individual who previously was a principal at a REP that was subject to the circumstances described above (POLR drop, ERCOT default, etc.) within the timeframe described above.

Withdrawal of Application  (08/15/2024)
Commissioner Lori Cobos Memo  (08/14/2024)
Order No. 4 – Finding Application Complete & Abating Proceeding (07/30/2024)
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Application Of Energywell Texas, LLC For A Retail Electric Provider Certificate