Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS › Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS › Subchapter O - UNBUNDLING AND MARKET POWER › Division 2 - INDEPENDENT ORGANIZATIONS › Section 25.364 - Decertification of an Independent Organization

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. This section establishes the
					 procedures for the decertification of an independent organization and the
					 transfer of assets to a successor organization pursuant to Public Utility
					 Regulatory Act (PURA) §39.151(d).
(b) Applicability. This section applies to
					 any organization that the commission has certified as an independent
					 organization pursuant to PURA §39.151.
(c) Initiation of proceeding to decertify.
					 The commission may initiate a proceeding to revoke an independent
					 organization's certification. Prior to initiating a proceeding to revoke a
					 certification, the commission may conduct an audit or study of the performance
					 of an independent organization with respect to its efficiency and effectiveness
					 in carrying out the duties of an independent organization under PURA and this
					 title. Any such audit or study may be conducted or supervised by the commission
					 and shall be funded by the independent organization.
(d) Standard for decertification. The
					 commission may issue an order decertifying an independent organization if it
					 finds that the organization has committed significant violations of PURA or
					 commission rules or failed to efficiently and effectively carry out the duties
					 of an independent organization.
(e)
					 Order revoking certification. The commission's order revoking certification
					 shall ensure continuity of operations of the independent organization and shall
					 designate the successor organization that will assume the functions of the
					 independent organization. The commission order revoking certification will
					 provide for the independent organization to transfer its assets and liabilities
					 to the successor independent organization designated by the
					 commission.
(f) Selection of
					 successor organization. Prior to the decertification of an independent
					 organization, the commission shall designate, and certify pursuant to PURA
					 §39.151(c), a successor independent organization from among persons that
					 have submitted proposals in response to the commission's request. To the extent
					 that there are duties performed by the current independent organization that
					 are not required by statute, organizations other than a successor independent
					 organization may be designated to assume those functions.
(g) Transfer of assets. The transfer of
					 assets and liabilities from a decertified independent organization to its
					 successor organization shall be made in a way that ensures that the functions
					 of the independent organization continue to be provided reliably and without
					 interruption. The commission may impose specific conditions or requirements
					 upon the transfer of assets and liabilities.
(h) Continuity of operations. To ensure that
					 all of the required functions of the independent organization continue to be
					 carried out during the decertification and transfer process, the commission,
					 upon its own initiative, may order the independent organization or its
					 successor organization, or both, to perform or continue certain acts related to
					 the organization's operation. These include, but are not limited to, capital
					 investment projects, financing, meeting or renegotiating contractual
					 obligations, and employment of essential personnel.