Retail electric service in Texas generally requires certification by the commission, and certified providers must meet specified customer-protection, office, reporting, and load-mix requirements.
Sec. 39.352. CERTIFICATION OF RETAIL ELECTRIC PROVIDERS. (a) After the date of customer choice, a person, including an affiliate of an electric utility, may not provide retail electric service in this state unless the person is certified by the commission as a retail electric provider, in accordance with this section. (b) The commission shall issue a certificate to provide retail electric service to a person applying for certification who demonstrates: (1) the financial and technical resources to provide continuous and reliable electric service to customers in the area for which the certification is sought; (2) the managerial and technical ability to supply electricity at retail in accordance with customer contracts; (3) the resources needed to meet the customer protection requirements of this title; and (4) ownership or lease of an office located within this state for the purpose of providing customer service, accepting service of process, and making available in that office books and records sufficient to establish the retail electric provider's compliance with the requirements of this subchapter. (c) A person applying for certification under this section shall comply with all applicable customer protection provisions, disclosure requirements, and marketing guidelines established by the commission and by this title. (d) Notwithstanding Subsections (b)(1)-(3), if a retail electric provider files with the commission a signed, notarized affidavit from each retail customer with which it has contracted to provide one megawatt or more of capacity stating that the customer is satisfied that the retail electric provider meets the standards prescribed by Subsections (b)(1)-(3) and Subsection (c), the retail electric provider shall be certified for purposes of serving those customers only, so long as it demonstrates that it meets the requirements of Subsection (b)(4). (e) A retail electric provider may apply for certification any time after September 1, 2000. (f) The commission shall use any information required in this section in a manner that ensures the confidentiality of competitively sensitive information. (g) If a retail electric provider serves an aggregate load in excess of 300 megawatts within this state, not less than five percent of the load in megawatt hours must consist of residential customers. This requirement applies to an affiliated retail electric provider only with respect to load served outside of the electric utility's service area, and, in relation to that load, the affiliated retail electric provider shall meet the requirements of this subsection by serving residential customers outside of the electric utility's service area. For the purpose of this subsection, the load served by retail electric providers that are under common ownership shall be combined. A retail electric provider may meet the requirements of this subsection by demonstrating on an annual basis that it serves residential load amounting to five percent of its total load or by demonstrating that another retail electric provider serves sufficient qualifying residential load on its behalf. Qualifying residential load may not include customers served by an affiliated retail electric provider in its own service area. Each retail electric provider shall file reports with the commission that are necessary to implement this subsection. This subsection applies for 36 months after retail competition begins. The commission shall adopt rules to implement this subsection. Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999. Amended by: Acts 2019, 86th Leg., R.S., Ch. 467 (H.B. 4170), Sec. 16.002, eff. September 1, 2019.