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Texas PUC Staff Now Recommend Approval Of REP's Application, Following Earlier Muddled Brief On Applicability Of Rule Prohibiting Principals From Controlling REP
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Staff of the Texas PUC have now recommended that the Texas PUC approve the Option 1 Texas retail electric provider certificate of NextVolt Texas, LLC
As previously reported, PUC Staff in November 2024 had filed a brief stating that consideration of the NextVolt REP application should not proceed until the relinquishment proceeding of a separate REP, OnPoint Energy Texas, LLC, is resolved. The OnPoint proceeding remains pending.
OnPoint has unpaid obligations to the TDUs. OnPoint has filed to relinquish its REP certificate, and a settlement with PUC Staff to resolve the matter is pending
Staff alleged that confidential filings in NextVolt's REP application, "indicated that multiple of NextVolt’s principals exercised direct or indirect control of OnPoint Energy Texas, LLC (OnPoint) at the time of OnPoint filing for relinquishment," of OnPoint's REP certificate
Staff did not specifically name such principals, but leadership of NextVolt is discussed further below
In seeking to shelve consideration of NextVolt's REP application pending the resolution of the OnPoint relinquishment settlement, Staff had cited 16 TAC § 25.107(g)
16 TAC § 25.107(g) provides that, "[i]n no instance", shall a REP be controlled by an individual who was a principal of a market participant, "at any time within the six months prior to the market participant," experiencing: (1) an involuntary mass transition, (2) termination of its ERCOT SFA market agreement, or (3) an exit from an electricity or gas market with outstanding payment obligations that have not been cured
As more fully discussed in our prior story, Staff's November 2024 brief took a muddled view of the application of § 25.107(g), and specifically the rule's timing. See a full discussion in our prior story here
NextVolt Texas had said in a November brief that no person identified in NextVolt’s application was associated with OnPoint within the six-month period that was prior to the date on which any of the events listed in § 25.107 could occur.
In a prior filing, NextVolt had also stated, "As established in the factual record in this case, in no instance is any person who may be in a position of control, or who is relied upon to meet the requirements of 16 Texas Administrative Code (TAC) § 25.107(d) or (e), 'a person who was a principal of a market participant, at any time within the six months of any prior market participant' falling within the criteria listed in 16 TAC § 25.107(g)(1)."
In a final recommendation filed today, PUC Staff now recommend that NextVolt Texas's Option 1 REP application should be approved
Staff's recommendation does not discuss Staff's prior brief or the change from Staff's earlier position that NextVolt Texas's application should not be addressed until the OnPoint relinquishment proceeding is resolved. As noted above, the OnPoint relinquishment proceeding remains pending
Staff states that NextVolt satisfies the requirements of 16 TAC § 25.107
As first reported by EnergyChoiceMatters.com, NextVolt is a subsidiary of The Power One Energy Company (P1EC), whose retail suppliers previously used the ResCom brand
Richard Rathvon serves as CEO of P1EC
As noted above, the relevant NextVolt principals that Staff alleged exercised direct or indirect control of OnPoint are confidential. Although certain executives or other employees who held roles at both REPs (at different time periods, not concurrently) are known based on public filings, the extent of control over each REP by such individuals, if any, is not known
In 2022, Cullen Hay had previously been identified as OnPoint's Chief Executive Officer at the time of OnPoint's launch in 2022. Hay has been publicly identified as President of NextVolt Texas, LLC in its REP application
NextVolt Texas, LLC's REP application has identified David Draper as CFO. An individual named David Draper had been identified as VP, Finance in OnPoint's 2022 REP application
Docket 56729
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January 6, 2025
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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