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Texas ALJ Denies Energywells Application Waiver of Rule Prohibiting Leaders of Previously Defaulted REPs from Controlling a REP
Order No. 2 finds Energywell’s Application Deficient, Establishing Deadlines And An Opportunity To Cure, And Denying Request For Good Cause Exception.
As previously reported, Energywell Texas, LLC filed a REP Application application with the Texas Public Utilities Commission. In its application, the entity sought a waiver to the rules) making certain types of individuals ineligible for satisfying 16 TAC § 25. 107(d) and (e).
Under 16 TAC § 25.107(d) and (e), an applicant for REP certification must identify various individuals within its organization (such as the primary contact, the customer complaint contact, all company principals and executive officers, employees with industry and risk management experience, and so on). However, 16 TAC § 25.107(g)(1) makes certain types of individuals ineligible for satisfying 16 TAC § 25. 107(d) and (e), as follows:
In no instance may any of the following persons control the REP or be relied upon to meet the requirements of subsections (d) and (e) of this section: (A) a person who was a principal of a market participant, at any time within the six months prior to the market participant: (i) experiencing a mass transition of the REP’ s customers under 16 TAC § 25.43;2 Energywell has principals within its company who were formally principals of a market participant, Griddy Energy, LLC, at the time Griddy experienced a mass transition of its customers. Energywell would like to rely on those principals to qualify for REP certification in this proceeding. Energywell contends generally that, absent the prohibition in 16 TAC § 25.107(g)(1), the principals would satisfy the technical and managerial qualifications for an option 1 REP. Energywell cites 16 TAC § 25.3(b) to support its request for a good cause exception.
Commission Staff declined to take a position on Energywell’s request for a good cause exception. In the present proceeding, there is no dispute that Energywell’ s principals fall within the category of persons prohibited by 16 TAC § 25.107(g)(1). The ALJ does not believe the language of 16 TAC § 25.107(g)(1) contemplates any exception to its requirements such that a good cause exception could be granted. Accordingly, the ALJ denies Energywell’ s request for a good cause exception to the requirements of 16 TAC § 25.107(g)(1).
56651 (05/23/2024)
REP Application of Energywell Texas, LLC
