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Joint Settlement Agreement Would Conclude Staff’s Investigation of REP for Alleged Violations Related To Financial Obligations And Will Not Seek Any Administrative Penalties
Excerpts from Settlement Agreement:
{***} “The Staff of the Public Utility Commission of Texas (Commission Staff) and OnPoint Energy Texas, LLC (OnPoint) enter into this settlement agreement and file this joint report to the Commission. If approved, the terms of this agreement will resolve and conclude Commission Staff’ s investigation of OnPoint for violations under 16 Texas Administrative Code (TAC) § 25.107(k), related to financial obligations for retail electric providers (REPs).The agreement also serves as a report to the Commission under 16 TAC § 22.246(h).
Financial Obligations to Transmission and Distribution Utilities
- In February 2024, as a result of its liquidity crisis, OnPoint failed to timely remit payment for invoiced charges to AEP Texas, Inc. (AEP Texas), CenterPoint Energy Houston Electric, LLC (CenterPoint), Oncor Electric Delivery Company, LLC (Oncor), and Texas New Mexico Power Company (TNMP) (collectively, the TDUs).
- To date, OnPoint has failed to remit payment to the TDUs for the following invoiced obligations, pursuant to the terms of each TDU’s respective tariff: 6
TDU Outstanding Charges
AEP Texas $42,728.32
CenterPoint $224,549.00
Oncor $994,443.96 TNMP $58 612.33
Total: $1.320.333.61
- Commission Staff asserts, and OnPoint acknowledges, that OnPoint committed significant violations under 16 TAC §§ 25.107(k)(7) and (16) by failing to meet financial obligations on a reasonable and timely basis and by failing to timely remit payment for its financial obligations to the TDUs.” {***}
PROPOSED ORDER
{***} “This Order addresses the agreement between Commission Staff and OnPoint Energy Texas, LLC (OnPoint) regarding Commission Staff’s investigation of OnPoint for violations of 16 Texas Administrative Code (TAC) § 25.107, related to financial obligations of retail electric providers (REPs). On May 22,2024, OnPoint authorized Commission Staff to draw on its letter of credit maintained under 16 TAC § 25.107(f)(1)(B) for the purpose of using its proceeds to satisfy OnPoint’ s outstanding debts. On May 24, 2024, Commission Staff drew on OnPoint’ s letter of credit. Commission Staff recommends that the proceeds of OnPoint’ s letter of credit be disbursed in accordance with the order of priority established under 16 TAC § 25.107(f)(6)(A) OnPoint agrees with Commission Staff’s recommendation. For the reasons identified in this Order, the Commission revokes OnPoint’ s REP certificate number 10326 and approves the proposed disbursement and orders Commission Staff to conduct the disbursement of proceeds, to the extent provided in this Order.” {***}
Settlement Agreement And Report To The Commission (10/01/2025)
58756
(Settlement Agreement Regarding Onpoint Energy Texas, LLC’S Violations Of 16 TAC § 25.107, Related To Financial Obligations Of Retail Electric Providers)
