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PUCT Staff Files Updated REP Certification and Obligation Proposal
On April 2, 2026 Staff of the TPUC issued an updated proposal for publication relating to amendments to §25.107 to the certification and obligations of Retail Electric Providers (REPs).
Comments to the Staff’s amended proposal must be filed by May 21, 2026.
The most recent draft proposal includes the below changes to the prior recommended proposal filed on March 25, 2026.
“Commission Staff updates its recommendation as follows for proposed 16 Texas Administrative Code 16 § 25.107(f)(4)(F)(v)(II), which is a new provision:
(II) An amendment to an irrevocable stand-by letter of credit involving a request to decrease the value of the irrevocable stand-by letter of credit is only effective upon the execution of a written agreement by the executive director or his or her designee approving the change. Additionally, an amendment Amendments to decrease the value of the irrevocable stand-by letter of credit must be accompanied by an affidavit that:
(a) is be sworn;
(b) is be signed by an executive officer of the REP
(c) includes include the date the affidavit was signed; and
(d) includes be accompanied by a written statement indicating, as applicable, either the current number of ESI IDs the REP serves or the value of customer deposits and prepayments the REP is liable for.
The proposed change clarifies that the requirements of subitems (-a-) through (-d-) do not apply directly to an amendment to a REP’s irrevocable stand-by letter of credit, but that such an amendment must also be accompanied by an affidavit that meets the requirements of subitems (-a-) through (-d-). Additionally, in preparing this updated proposal, Commission Staff made a number of minor and non-substantive changes throughout the draft.
The purpose of Staff’s proposed changes is to update the REP letter of credit requirements to match the electronic filing standards specified in $22.71, relating to Commission Filing Requirements and Procedures.
Commission Staffs proposal also amends the definition of “affiliate” for use within § 25.107 and makes minor clarifying changes to requirements applicable to Option 2 REPs and to the financial documentation requirements of segregated cash accounts and escrow accounts.
Commission staffs proposal also includes changes to the following commission-prescribed forms: a comprehensive revision to the REP Letter of Credit template; conforming revisions to the REP Application and Amendment Form; and relevant updates to the REP Reporting Instructions Form.
