860-038-0400 Electricity Service Supplier Certification Requirements (1) An electricity service supplier (ESS) must be certified by the Commission to sell electricity services to consumers. (2) An ESS must be certified as either scheduling or nonscheduling as prescribed in OAR 860-038-0410. (3) The initial certification fee is $400. (4) The annual renewal fee is $200. (5) An ESS applicant must file an application that contains the following information: (a) Name of applicant, including owners, directors, partners, and officers, with a description of the work experience of key personnel in the sale, procurement, and billing of energy services or similar products; (b) Name, address, and phone number of the ESS applicant's regulatory contact; (c) Proof of authorization to do business in the state of Oregon; (d) Dun and Bradstreet number, if available; (e) Confirmation that the applicant (including owners, directors, partners, and officers) has not violated consumer protection laws or rules in the past three years; (f) Audited financial statements of the ESS applicant (and its guarantor, if applicable) and credit reports consisting of: (A) A balance sheet, income statement, and statement of cash flow for each of the three years preceding the filing and for the interim quarters between the end of the last audited year and the filing date; or (B) For an applicant that has been in operation for less than three years, the audited balance sheets, income statements, and statements of cash flow for each of the years the company was in operation and for the interim quarters between the end of the last audited year and the filing date; or (C) For an applicant that has been in operation for less than 12 months on the date the application is filed, such financial statements as are kept in the regular course of the applicant's business operations and pro-forma financial statements for a period of not less than 36 months. (D) If audited financial statements are unavailable, the applicant may submit unaudited financial statements for each of the three years preceding the filing and for the interim quarters between the end of the last unaudited year and the filing date. The applicant must also submit a statement explaining why audited statements are not available. (g) A showing of creditworthiness through documentation of tangible assets in excess of liabilities (i.e., tangible net worth) of at least $1,000,000 on its most recent balance sheet and demonstration of either its own investment grade credit rating pursuant to (A) or fulfillment of bond/guaranty requirements pursuant to (B): (A) Investment grade rating means a suitable rating on the long term, senior unsecured debt, or if this rating is unavailable, the corporate rating, of a major credit rating agency. (B) An applicant may use any of the financial instruments listed below, in an amount commensurate with the services and products it intends to offer, to satisfy the credit requirements established by this rule. (i) Cash or cash equivalent (i.e., cashier's check); (ii) A letter of credit issued by a bank or other financial institution, irrevocable for a period of at least 18 months; (iii) A bond in a form acceptable to the Commission, irrevocable for a period of at least 18 months; or (iv) A guaranty in a form acceptable to the Commission issued by a principal of the applicant or a corporation holding controlling interest in the applicant, which is irrevocable for at least 18 months. To the extent the applicant relies on a guaranty, the applicant must provide financial evidence sufficient to demonstrate that the lender or guarantor possesses the cash or cash equivalent needed to fund the guaranty. (h) A showing of technical competence in energy procurement and delivery, information systems, billing & collection, and if subject to the requirements of section 16 of this rule, safety & engineering; (i) A showing that its financial and technical competence is consistent with the services and products it intends to offer, and the targeted customer class(es) and geographical areas; and (j) A statement as to whether the ESS is applying for certification as a scheduling or nonscheduling ESS and information documenting an ability to comply to the requirements of OAR 860-038-0410; and (k) The authorized representative of the applicant must state that all information provided is true and correct and sign the application. (6) At a minimum, an applicant must attest that it will: (a) Furnish to consumers a toll-free number or local number that is staffed during normal business hours to enable a consumer to resolve complaints or billing disputes and a statement of the ESS's terms and conditions that detail the customer's rights and responsibilities; (b) Comply with all applicable laws, rules, Commission orders, and electric company tariffs; (c) Maintain insurance coverage, security bond, or other financial assurance commensurate with the types and numbers of consumers and loads being served, meet any other credit requirements contained in the electric company's tariffs, and cover creditors for a minimum of 90 days from the date of cancellation; and (d) Adequately respond to Commission information requests within 10 business days. (7) As conditions for certification, an ESS must agree to: (a) Enter into an agreement or agreements with each respective electric company to assign to the electric companies any federal system benefits available from the Bonneville Power Administration to the residential and small-farm customers who receive distribution from an electric company and are served by the ESS; and (b) Not enter into a Residential Sale and Purchase Agreement with the Bonneville Power Administration pursuant to Section 5(c) of the Pacific Northwest Power Act concerning federal system benefits available to residential and small farm customers receiving distribution from an electric company. (8) Staff will notify interested persons of the application, allow 14 days from the date of notification for the filing of protests to the application (through submission of an email or letter to the staff), review the application, and make a recommendation to the Commission whether the application should be approved or denied. (9) An applicant or a protesting party may request a hearing within 60 calendar days of the date of the staff recommendation. Upon determining the appropriateness of the request, the Commission will conduct a hearing as provided for in division 001 of the Commission's rules. (10) The Commission may issue an Order granting the applicant's request for certification upon a finding that: (a) The applicant paid the initial certification PUC fee, as required by OAR 860-038-0400(3); (b) The applicant filed an application containing accurate, complete and satisfactory information that demonstrates it meets the requirements to be certified as an ESS. (11) If the Commission grants the application, the Commission may include any conditions it deems reasonable and necessary. Further, upon granting the application, the Commission will certify the ESS for a period of one year from the date of the order. (12) An ESS must take all reasonable steps, including corrective actions, to ensure that persons or agents hired by the ESS adhere at all times to the terms of all laws, rules, Commission orders, and electric company tariffs applicable to the ESS. (13) An ESS must notify the Commission that it will not be renewing its certification or it must renew its certification each year as follows: (a) An ESS must file its application for renewal 30 days prior to the expiration date of its current certificate; (b) In its application for renewal the ESS must include the renewal fee, update the information specified in subsections (5)(a), (b), (i), and (j) of this rule, and state whether it violated or is currently being investigated for violation of any attestation made under the current certificate. The ESS must state that it continues to attest that it will meet the requirements of sections (6) and (7) of this rule. The authorized representative of the ESS must state that all information provided is true and correct and sign the renewal application; (c) If the Commission takes no action on the renewal application, the renewal is granted for a period of one year from the expiration date of the prior certificate; (d) If a written complaint is filed, or if on the Commission's own motion, the Commission has reason to believe the renewal should not be granted, the Commission will conduct a revocation proceeding per section (14) of this rule. The renewal applicant will be considered temporarily certified during the pending revocation proceeding. (14) Upon review of a written complaint or on its own motion the Commission may, after reasonable notice and opportunity for hearing, revoke the certification of an ESS for reasons including, but not limited to, the following: (a) Material misrepresentations in its application for certification or in any report of material changes in the facts upon which the certification was based; (b) Material misrepresentations in customer solicitations, agreements, or in the administration of customer contracts; (c) Dishonesty, fraud, or deceit that benefits the ESS or disadvantages customers; (d) Demonstrated lack of financial, or operational capability; or (e) Violation of agreements stated in sections (6) and (7) of this rule. (15) An ESS must promptly report to the Commission any circumstances or events that materially alter information provided to the Commission in the certification or renewal process or otherwise materially impacts their ability to reasonably serve electricity consumers in Oregon. (16) Each ESS that owns, operates, or controls electrical supply lines and facilities subject to ORS 757.035 must have and maintain its entire plant and system in such condition that it will furnish safe, adequate, and reasonably continuous service. Each such ESS must inspect its lines and facilities in such a manner and with such frequency as may be needed to ensure a reasonably complete knowledge about their condition and adequacy at all times. Such record must be kept of the conditions found as the ESS considers necessary to properly maintain its system, unless in special cases the Commission specifies a more complete record. The ESS must have written plans describing its inspection, operation, and maintenance programs necessary to ensure the safety and reliability of the facilities. The written plans and records required herein must be made available to the Commission upon request. The ESS must report serious injuries to persons or property in accordance with OAR 860-024-0050. Statutory/Other Authority: ORS 183, 756 & 757 Statutes/Other Implemented: ORS 756.040 & 757.600 - 757.667 History: PUC 1-2015, f. & cert. ef. 3-3-15 PUC 7-2005, f. & cert. ef. 11-30-05 PUC 23-2001, f. & cert. ef. 10-11-01 PUC 17-2000, f. & cert. ef. 9-29-00