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Staff Files Proposed REP Rule Amendments Relating to Certification and Financial Obligations and Accompanying Forms
On October 8, 2026 the Public Utilities Commission of Texas (PUCT) Staff issued a proposed order for the Commission’s consideration at the October 15th open meeting that would amend 16 Texas Administrative Code §25,107, relating to Certification and Obligations of Retail Electric Providers (REPs). Staff’ s recommendation also includes amendments to three commission-prescribed forms: (1) the REP Irrevocable Stand-By Letter of Credit template; (2) the REP Application and Amendment Form; and (3) the REP Reporting Instructions Form.
The amended rule and forms accordingly detail the specific procedures and requirements for filing REP ILOCs electronically with the commission and further clarifies the practices associated with such financial instruments. The amended rule also revises the definition of “affiliate” to more appropriately conform with its usage §25.107 and makes minor revisions to requirements applicable to Option 2 REPs and to the financial documentation requirements of segregated cash accounts and escrow accounts. The amended forms also include minor and conforming changes associated with the foregoing.
The amended rule also revises the definition of “affiliate” to more appropriately conform with the disclosure and financial requirements of §25.107. The amended rule also makes minor clarifying changes to requirements applicable to Option 2 REPs and to the financial documentation requirements of segregated cash accounts and escrow accounts.
Amendments to the REP Irrevocable Stand-By Letter of Credit template include conforming revisions to reflect electronic filing, including the prohibition on amending an ILOC without commission approval and the authorization for the commission to present or terminate an ILOC by electronic transmission. Amendments to the REP Application and Amendment Form and REP Reporting Instructions Form are conforming changes to reflect the amended rule, ILOC electronic filing requirements, as well as the revised definition of “affiliate.”
Summary of Electronic Filing and Updated ILOC Template Timeline
“The adopted amendments establish separate deadlines for electronic filing of irrevocable stand-by letters of credit (ILOCs) and for transition to the commission’s updated ILOC template. Beginning on the effective date of the amended rule, any new ILOC executed for purposes of compliance with §25.107 must use the updated commission template and must be filed electronically in Project 23 No. 37919. Existing ILOCs may continue to use the prior template until August 15, 2027, and may be maintained or amended using that template until that date. By March 5, 2027, any REP relying on an existing physical ILOC must ensure that its current ILOC has been electronically filed in Project No. 37919 in accordance with §22.71. A REP relying on a physical ILOC that has been previously scanned and filed is in compliance with the March 5 deadline. By August 15, 2027, all existing ILOCs must be re-issued or amended to conform to the updated commission template. Accordingly, March 5,2027 serves as the deadline for electronic filing of existing ILOCs, while August 15, 2027 serves as the deadline for transition of all existing ILOCs to the updated template.”
