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Energywell Texas, LLC Withdrawing Texas REP Application After Appeal Regarding Principals Denied
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Energywell Texas, LLC ("Energywell Texas") told EnergyChoiceMatters.com that it is withdrawing its application for a Texas retail electric provider certificate after the Texas PUC denied an appeal of an ALJ's order that had denied a request from Energywell Texas 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))
Energywell Texas, LLC provided the following statement concerning the matter:
"We were disappointed by the Commission’s decision to deny our appeal of Interim Order No. 2. At this time, we have decided to withdraw the application for Energywell Texas LLC to be a licensed REP in Texas. We remain committed to our mission to provide innovative electricity products that create value for our consumers and help balance electricity load on the grid."
--- Statement from Energywell Texas, LLC
As first reported by EnergyChoiceMatters.com, Energywell Texas, LLC, a newly formed entity but part of the Energywell family of companies, had applied for an Option 1 Texas retail electric provider certificate.
In doing so, Energywell Texas, LLC had 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 had 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 Texas 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 Texas 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 had initially denied Energywell Texas' petition for the good cause exception. Energywell Texas appealed this ruling to the PUC
The PUC today denied Energywell Texas's appeal in a unanimous 4-0 vote (Chair Thomas Gleeson was recused from the docket)
The PUC generally adopted the reasoning of Commissioner Lori Cobos, who said in a memo that the REP certification rule took the "extraordinary" step of stating explicitly that, "in no instance", shall a REP be controlled by an individual who previously was a principal at a REP that was subject to the circumstances described above (POLR drop, ERCOT default, etc.) within the timeframe described above
While ultimately voting to deny the appeal, Commissioner Jimmy Glotfelty had some concerns about denying the appeal, and generally said, "I sense that we need more competition in the retail electric market, not less."
Glotfelty was concerned about applying the prohibition to actions which occurred prior to rule's revision in the aftermath of Uri, but Staff noted that the relevant prohibition on control of a REP has been a long-standing prohibition in the rules, with the recent post-Uri rule updates being, in Staff's view, clarifying in nature, and addressing among other things, what "control" means
Docket 56651
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August 15, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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