Oregon Administrative Rules › Chapter 860 - PUBLIC UTILITY COMMISSION › Division 38 - DIRECT ACCESS REGULATION › Section 860-038-0400 - Electricity Service Supplier Certification Requirements

Current through Register Vol. 63, No. 7, July 1, 2024
(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.