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Texas ALJ Denies REP's Sought Waiver Of Rule Prohibiting Leaders Of Previously Defaulted REPs From Controlling A REP
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A Texas PUC ALJ has denied a request, from a retail electric provider applicant, for a good cause exception to the PUC's rule which provides that a REP may not be controlled by an individual who, within 6 months prior to the relevant event(s) occurring, was a principal at a REP which either (1) experienced an involuntary mass transition, (2) had its ERCOT standard form market participant agreement terminated, or (3) exited a market with outstanding financial obligations that remain outstanding (16 TAC § 25.107(g))
As first reported by EnergyChoiceMatters.com, Energywell Texas, LLC, a newly formed entity but part of the Energywell family of companies, has applied for an Option 1 Texas retail electric provider certificate
In doing so, Energywell Texas, LLC noted that certain of its principals -- namely Michael Fallquist, Roop Bhullar, and Christian McArthur -- were principals of Griddy Energy, LLC, which was subject to an involuntary mass transition of its customers to POLRs in the wake of Winter Storm Uri, and which had its ERCOT market participant rights revoked
Energywell Texas, LLC sought a waiver of 16 TAC § 25.107(g) under 16 TAC 25.3(b), which Energywell Texas said allows the PUC to make exceptions to the rules in Chapter 25 for good cause.
As more fully detailed in our prior story, Energywell said that Fallquist, Bhullar, and McArthur only became executives of Griddy nine weeks before Winter Storm Uri and had immediately begun efforts to improve Griddy's product, announcing, before Uri hit, plans for a fixed price offering that was in the process of being rolled out when Uri hit
"Applicant believes that the unprecedented circumstances surrounding the events related to Winter Storm Uri, and the actions taken in response by the principals of this Applicant during that time, provide the good cause required to grant the requested waiver," Energywell Texas, LLC had said
Energywell had also offered to meet various additional protections and certification standards as part of its sought rule waiver, as discussed in our prior story
An ALJ denied Energywell’s request for a good cause
exception to the requirements of 16 TAC § 25.107(g)(1).
"The ALJ does not believe the language
of 16 TAC § 25.107(g)(1) contemplates any exception to its requirements such that a good cause
exception could be granted," the ALJ said
The ALJ noted that 16 TAC § 25.107(g)(1) provides that, "in no instance", shall a person, who was a principal at a REP which experienced an involuntary mass transition within the timeframe noted above, control a REP
Docket 56651
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June 20, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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