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Texas ALJ Denies REP's Waiver Request Of Rule Requiring REPs To Avoid 24 Months Of Inactivity
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A Texas PUC ALJ has denied a request from Clearview Power, Inc. for a good cause waiver of a Texas PUC rule that essentially requires retail electric providers to serve a customer at least once in a 24 month period in order for such REP to maintain its REP certificate
As first reported by EnergyChoiceMatters.com, Clearview Power, Inc. made the waiver request as part of withdrawing its prior application to relinquish its Option 1 Texas REP certificate, as Clearview has reassessed its business plan for the Texas market and will maintain the certificate
In commenting on Clearview's filing, PUC Staff said that the proceeding in which the waiver request was made -- the proceeding addressing Clearview's (now withdrawn) application to relinquish its REP certificate -- is not the proper venue for a rule waiver
In denying Clearview's sought waiver, the ALJ, "agrees with Commission Staff that a good cause
exception to 16 TAC § 25.107(k)(14) [the 24 month rule] is inappropriate in this proceeding,"
Notwithstanding the ALJ's use of phrase "this proceeding", it was not explicitly clear whether the ALJ's denial was purely on procedural grounds, or if the denial addressed the substance of Clearview's request (there is, however, no further discussion of the denial by the ALJ)
As previously reported by EnergyChoiceMatters.com, Clearview Power has not served Texas customers since approximately December 2022.
Clearview has specifically sought a good cause waiver of Subst. R. § 25.107(k)(14), which is a provision of the PUC's REP licensing rules which essentially prohibits the maintenance of a REP certificate by an inactive REP
Subst. R. § 25.107(k)(14) provides that it is a "significant violation" of the Texas retail market rules if a REP ceases to provide retail electric service for a period of 24 months
While the rules define a REP that is inactive for at least 24 months as having committed a significant violation of the rules, the certification rules do not provide any automatic penalty for such violation. Rather, the rules provide that the PUC "may" revoke a REP's certificate for a "significant violation" of the rules, with the above-noted inactivity defined as a significant violation. In other words, while the rules do not favor such REP inactivity and defines such circumstance as a significant violation, the ultimate disposition of any REP certificate holder with such inactivity is subject to the Commission's discretion
Based on the date of its last activity in the Texas market, Clearview must serve customers by January 3, 2025 in order to not be considered inactive for 24 months
Clearview cited changes in ERCOT EDI protocols since the time that Clearview last served Texas customers as prompting the need for a temporary waiver of § 25.107(k)(14), due to the need for Clearview to re-test with ERCOT
The ALJ did accept Clearview's petition to withdraw Clearview's original filing to relinquish its REP certificate
Docket 56707
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October 1, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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