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Energywell Texas Withdraws REP Application
From Energywell’s Texas PUC REP Application Withdrawal:
[ *** ] Energywell filed an application for an Option 1 retail electric provider (“REP”) certificate under PURA1 § 39.352 and 16 Texas Administrative Code (“TAC”) § 25.107 on May 23, 2024. As part of that application, Energywell requested a good cause exception to the requirements of 16 TAC § 25.107(g)(1) pursuant to 16 TAC 25.3(b). In Order No. 2, issued on Thursday, June 20, 2024, the Administrative Law Judge (“ALJ”) denied Energywell’s request for a good cause exception. In response to Order No. 2, on July 1, 2024 Energywell filed an appeal to an interim order pursuant to 16 TAC 22.123 which was denied by the Commission on August 15, 2024. At this point, there are no longer any appeals of interim orders pending nor is there a procedural schedule in place. [ *** ]
From the Texas Commission memo:
[ *** ] Winter Storm Uri was a devastating storm for our state that significantly impacted the retail and wholesale markets in the Electric Reliability Council of Texas (ERCOT) region. At the time of Winter Storm Uri, Griddy Energy LLC (Griddy) was certificated as a retail electric provider (REP). In the immediate aftermath of Winter Storm Uri, 9,926 of Griddy’s customers had to be transitioned to a Provider of Last Resort. Griddy’s ERCOT standard form market participant agreement (SFA) was terminated by ERCOT, and Griddy filed for Chapter 11 bankruptcy protection on March 15,2021. On August 26, 2021, ERCOT filed an amended proof of claim in the bankruptcy court alleging that the balance Griddy owed to ERCOT was $29,913,799.84.
The Commission’s REP Certification rule, 16 TAC § 25.107(g)(1), explicitly states that in no instance may the following persons control a REP or be relied upon to meet the requirements of 16 TAC 25.107(d) and (e): A person who was also a principal of a market participant, at any time within the 6 months prior to the market participant: (i) experiencing a mass transition of the REP’s customers under 16 TAC § 25.43, or (ii) having their ERCOT SFA, or similar agreement for an independent organization other than ERCOT terminated. It is undisputed that Energywell’s principals, who previously served as Griddy’s principals during Winter Storm Uri, fall within the category of persons that are prohibited from serving as Energywell’s principals under 16 TAC § 25.107(g)(1). [ *** ]
