Current through Reg. 50, No. 13; March 28, 2025
(a) Applicability.
This section applies to municipalities that require retail electric providers
(REPs) to register in accordance with the Public Utility Regulatory Act (PURA)
§39.358 and to all REPs with a certificate granted by the commission
pursuant to PURA §39.352(a) and §
25.107 of this title (relating to
Certification of Retail Electric Providers).
(b) Purpose. A municipality may require a REP
to register as a condition of serving residents of the municipality, in
accordance with PURA §39.358. This section establishes an optional
"safe-harbor" process for municipal registration of REPs to standardize notice
and filing procedures, deadlines, and registration information and fees. The
"safe-harbor" registration process simplifies and provides certainty to both
municipalities and REPs, thereby facilitating the development of a competitive
retail electric market in Texas. If a municipality enacts a registration
ordinance that is consistent with this section, the ordinance shall be deemed
to comply with PURA §39.358. A municipality may exercise its authority
under PURA §39.358 and adopt an ordinance that is not consistent with this
section; however, such ordinance could be subject to an appeal to the
commission under PURA §32.001(b).
(c) Definitions. The following words and
terms, when used in this section, shall have the following meanings, unless the
context clearly indicates otherwise:
(1)
Resident--Any electric customer located within the municipality, except the
municipality itself, regardless of customer class.
(2) Revocation--The cessation of all REP
business operations within a municipality, pursuant to municipal
order.
(3) Suspension--The
cessation of all REP business operations within a municipality associated with
obtaining new customers, pursuant to municipal order.
(d) Non-discrimination in REP registration
requirements. A municipality shall not establish registration requirements that
are different for any REP or type of REP or that impose any disadvantage or
confer any preference on any REP or type of REP. However, a municipality may
exclude from its registration requirement a REP that provides service only to
the municipality's own electric accounts and not to any residents of the
municipality.
(e) Notice. A
municipality that enacts an ordinance adopting the standard registration
process under this section shall file only the ordinance or section of
ordinance, including the effective date, with the commission at least 30 days
before the effective date of the ordinance. The filing shall not exceed ten
pages. The filing of such a municipality's ordinance in accordance with §
22.71 of this title (relating to
Filing of Pleadings, Documents, and Other Materials) shall serve as notice to
all REPs of the requirement to submit a registration to the
municipality.
(f) Standards for
registration of REPs. A municipality that adopts a "safe-harbor" ordinance in
accordance with this section shall process a REP's registration request as
follows:
(1) A REP shall register with a
municipality that adopts an ordinance in accordance with this section within 30
days after the ordinance requiring registration becomes effective or 30 days
after providing retail electric service to any resident of the municipality,
whichever is later.
(2) A REP shall
register with a municipality that adopts an ordinance in accordance with this
section by completing a form approved by the commission, and signed by an
owner, partner, officer, or other authorized representative of the registering
REP. Forms may be submitted to a municipality by mail, facsimile, or online
where online registration is available. Registration forms may be obtained from
the commission's Central Records division during normal business hours, or from
the commission's website.
(3) The
municipality shall review the REP's submitted form for completeness, including
the remittance of the registration fee. Within 15 business days of receipt of
an incomplete registration, the municipality shall notify the registering REP
in writing of the deficiencies in the registration. The registering REP shall
have 20 business days from the issuance of the notification to cure the
deficiencies. If the deficiencies are not cured within 20 business days, the
municipality shall immediately send a rejection notice to the registering REP
that the registration is rejected without prejudice. Absent such notification
of rejection, the registration shall be deemed to have been accepted.
(4) A municipality shall not deny a REP's
request for registration based upon investigations into the fitness or
capability of a REP that has a current certificate from the
commission.
(5) A municipality
shall not require a REP to undergo a hearing before the municipality for the
purposes of registration, nor require the REP to send a representative to the
municipality for purposes of processing the registration form.
(g) Information. A municipality
may require a REP to provide only the information set forth below. A REP shall
provide all of the following information on the commission's prescribed form to
a municipality that has adopted a "safe-harbor" ordinance under this section:
(1) The legal name(s) of the retail electric
provider and all trade or commercial names;
(2) The registering REP's certificate number,
as approved under §
25.107 of this title and the
docket number under which the certification was granted by the
commission;
(3) The Texas business
address, mailing address, and principal place of business of the registering
REP. The business address provided shall be a physical address that is not a
post office box;
(4) The name,
physical business address, telephone number, fax number, and e-mail address for
a Texas regulatory contact person and for an agent for service of process, if a
different person;
(5) Toll-free
telephone number for the customer service department or the name, title and
telephone number of the customer service contact person;
(6) The types of electric customer classes
that the REP intends to serve within the municipality; and
(7) The location of each office maintained by
the registering REP within the municipal boundaries, including postal address,
physical address, telephone number, hours of operation, and listing of the
services available through each office.
(h) Registration fees. A municipality
adopting the "safe-harbor" registration process may require REPs to pay a
reasonable administrative fee for the purpose of registration only.
(1) A one-time registration fee of not more
than $25 shall be deemed reasonable.
(2) A municipality may require a REP to pay a
one-time late fee, which shall not exceed $15, only if the REP fails to
register within 30 days after the ordinance requiring registration becomes
effective or 30 days after providing retail electric service to any resident of
the municipality, whichever is later.
(i) Post-registration requirements and
re-registration.
(1) A REP shall notify
municipalities adopting the "safe-harbor" registration within 30 days of any
change in information provided in its registration. In addition, a REP shall
notify a municipality within ten days if it discontinues offering service to
residents of the municipality.
(2)
A municipality shall not require REPs to file periodic reports regarding
complaints, or any other matter, as part of the registration process.
(3) A municipality shall not require a
periodic re-registration process or fee.
(4) A municipality shall not require a REP to
re-register unless a REP's registration is revoked and the REP subsequently
cures its defects and resumes operations. In that circumstance, the REP may
register in the same manner as a new REP.
(j) Suspension and revocation. A municipality
may suspend or revoke a REP's registration and authority to operate within the
municipality only upon a commission finding that the REP has committed
significant violations of PURA Chapter 39 or rules adopted under that chapter.
A municipality shall not suspend or revoke the registration of the affiliated
REP or provider of last resort (POLR) serving residents in the municipality. A
municipality shall not take any action against a REP other than suspension or
revocation of a REP's registration and authority to operate in the
municipality, or imposition of a late fee in accordance with subsection (h)(2)
of this section.
(1) A municipality may
provide a REP with a warning prior to seeking to suspend or revoke a REP's
registration.
(2) A municipality
seeking to suspend or revoke a REP's registration shall provide the REP with at
least 30 calendar days written notice, informing the REP that its registration
and authority to operate shall be suspended or revoked. The notice shall
specify the reason(s) for such suspension or revocation.
(3) A municipality may order that the REP's
registration be suspended or revoked only after the notice period has
expired.
(4) In its suspension
order, a municipality shall specify the reasons for the suspension and provide
a date certain or provide conditions that a REP must satisfy to cure the
suspension. Once the suspension period has expired or the reasons for the
suspension have been rectified, the suspension shall be lifted.
(5) In its revocation order, a municipality
shall specify the reasons for the revocation.
(6) A REP may appeal a municipality's
suspension or revocation order to the commission.