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REP Certificate to be Revoked for Financial Obligation Violations
Staff of the Public Utility Commission of Texas and Declaration Energy, LLC, filed a settlement agreement regarding Declaration’s violations of 16 Texas Administrative Code § 25.107(k) for failure to meet financial obligations of retail electric providers (REPs).
Under the settlement parties agree to the following:
- “Declaration committed a significant violation of Commission rules 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 to transmission and distribution utilities (TDUs).
- Commission Staff recommends, and Declaration agrees, that the proceeds from Declaration’ s financial resources maintained under 16 TAC § 25.107(f)(1)(B) should be used to satisfy outstanding debts, consistent with 16 TAC § 25.107(f)(6)(A)
- Commission Staff recommends, and Declaration agrees, that Declaration’ s REP certificate number 10281 should be revoked under PURA § 39.356(a) and 16 TAC § 25.107(k).
- This agreement resolves all matters related to Declaration’ s violations of 16 TAC §§ 25.107(k)(7) and (16).”
The record indicates that all Declaration customers were transferred from Declaration to US Retailers, LLC; Green Mountain Energy Company; and Reliant Energy Retail Services LLC by April 19, 2024 and all customer deposits and residential advance payments held by Declaration were also transferred. Also, Declaration no longer serves any customers or conducts any activity as a REP.
Settlement Terms Related to Proposed Disbursement of Financial Resources:
- “On May 22,2024, Declaration authorized Commission Staff to draw on its $500,000 letter of credit maintained with the Commission under 16 TAC § 25.107(f)(1)(B) for the purpose of using the proceeds of that letter of credit to satisfy Declaration’ s outstanding debts.
- On June 13, 2024, Commission Staff drew on Declaration’ s letter of credit.
- Commission Staff currently holds the $500,000 proceeds from Declaration’s letter of credit, pending a Commission order approving disbursement as detailed in this agreement.
- Commission Staff will not seek any administrative penalties from Declaration for the matters addressed in this agreement.”
Commission Staff requests that the above settlement agreement be admitted as evidence into the record of this proceeding and that a final order be issued by the Commission.
