Several TDUs Seek Revocation Of Texas REP's Certificate

April 16, 2024

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Copyright 2010-24 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Several Texas TDUs have said in pleadings before the Public Utility Commission of Texas that the PUC should revoke the retail electric provider certificate of OnPoint Energy Texas, LLC, for OnPoint's alleged default on payment to the TDUs

As exclusively first reported by EnergyChoiceMatters.com, OnPoint Energy earlier this year transferred all of its customers to Good Charlie, LLC

OnPoint Energy has filed to relinquish its Texas REP certificate.

However, several TDUs are seeking revocation of OnPoint's REP certificate, rather the the PUC approving a voluntary relinquishment, in order to draw upon OnPoint's letter of credit posted with the PUC, in order to partially satisfy OnPoint's alleged outstanding obligations with the TDUs

Oncor alleged in a filing that, "Having defaulted on its obligation to pay Oncor for those [retail delivery] services, OnPoint now owes Oncor over $1.3 million."

Oncor alleged, "OnPoint should not be permitted to relinquish its REP certificate. Ordinarily, applications to voluntarily relinquish REP certificates are approved for REPs that have not served customers for some time or REPs that have no outstanding obligations to any market participants. Such uncontroversial circumstances do not exist in OnPoint’s case, making a voluntary relinquishment of OnPoint’s REP certificate inappropriate."

Oncor alleged, "A revocation of OnPoint’s REP certificate is more appropriate under the rules and Commission precedent due to OnPoint’s defaults to Oncor under the Tariff and to the other TDUs."

Oncor said, "Oncor plans to file a petition to revoke OnPoint’s REP certificate and a motion to consolidate as soon as reasonably practical (or to support such a filing by Commission Staff) and will coordinate with Commission Staff and the intervenors in that effort."

In a separate filing, AEP Texas alleged, "As of April 15, 2024, OnPoint Energy has an outstanding balance with AEP Texas of $69,333.27, a portion of which is in default."

AEP Texas said, "In accordance with its Tariff, AEP Texas therefore further requests that if OnPoint Energy does not meet its financial obligations to AEP Texas, that the Commission issue an order revoking OnPoint Energy’s retail electric provider certificate."

AEP Texas further said, "It is also AEP Texas’ position that OnPoint Energy should not be permitted to acquire new customers or to re-enter the market after relinquishment or revocation of its certificate if it is unable to meet its financial obligations."

In a separate filing, Texas-New Mexico Power Company said, "TNMP believes that it is reasonable and appropriate for the Commission to: a) revoke the Retail Electric Provider ('REP') certificate of OnPoint; and b) make a determination that OnPoint’s letter of credit be distributed pro rata among the transmission distribution utilities ('TDUs') after ERCOT’s obligations are satisfied."

TNMP alleged OnPoint currently owes TNMP $58,612.33

TNMP said that it, "believes that that [sic] the collective balance owed to the TDUs exceeds any remaining letter of credit funds [after other obligations which may be paid before the TDUs under the PUC's rules for a LOC draw]."

In a separate filing, CenterPoint Energy Houston Electric, LLC alleged, "OnPoint has an outstanding balance of $331,755.63 with CenterPoint Energy for delivery services provided to OnPoint under the [delivery] Tariff."

While CenterPoint Energy Houston Electric did seek disbursement of the OnPoint stand-by letter of credit, CenterPoint Energy Houston Electric did not explicitly suggest revocation of OnPoint's REP certificate

Docket 56201

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