Archive for August 2014

The Proton Sale…

If you are at all curious, like me, you may be wondering the identity of the “redacted” individual referred to in staff’s final recommendation as relates to Proton’s sale (transfer of ownership and control) filed in docket 42450.  Some sleuthing has revealed the the problematic proposed employee is Francisco Segura.  Mr. Segura was the Vice President of Operations and Customer Relations at Energy West d/b/a Franklin Power Company.  It is Energy West/Franklin that experienced a Mass Transition of customers to POLR in 2005 and had its certificate revoked, see docket 31166. Mr. Segura then went on to work at Glacial Energy as President of Operations (see Glacial’s REP application in docket 32342).  Glacial’s REP license was nearly revoked in docket 40090, but the PUCT allowed it to continue in business as long as Mr. Gary Mole, the then owner of Glacial, and prior owner of Energy West, relinquish all control and ownership in Glacial.

As stated in the Findings of Fact in docket 40090, Glacial failed to disclose Gary Mole’s ownership interest in Franklin Power Company (Franklin) in its initial application for REP certification. Franklin experienced a mass transition of its customers to the provider of last resort (POLR) in 2005. Glacial also failed to disclose pending complaints against Franklin by TXU Electric Delivery Company and CenterPoint Energy Houston Electric LLC to revoke Franklin’s REP certificate for failure to satisfy its financial obligations.

These complaints were consolidated in Complaint of CenterPoint Energy Houston Electric LLC Regarding Retail Electric Provider Energy West Resources, Ltd., Docket No. 31166, Order No. 3, Consolidating Dockets and Requiring Response (Jul. 13, 2005) and a hearing on the merits was held on February 28, 2006. Franklin’s REP certificate was subsequently revoked by Order on July 17, 2006.

It is clear that with Staff’s recommendation in this docket, Mr. Segura should also be viewed as black-listed, i.e. no ownership interest greater than 10% and experience cannot be used towards managerial qualifications.