Tesla Approved to Sell Electricity in Texas, Reveals Filing
After a filing in August revealed that Tesla was looking to become an electricity provider in Texas, the state has now made it an official utility provider, as revealed by a new document.
The Texas Public Utility Commission has certified Tesla as an electricity provider in Texas, according to The Texan, in a filing last week dated November 3, 2021. Tesla’s subsidiary, Tesla Energy Ventures can now operate as a Retail Electric Provider (REP) in the lone star state.
The news comes after a severe Texas snowstorm left several Texas residents without power earlier this year, during which many Tesla Powerwall owners were saved by the company.
The commission said in a document that the company’s Texas electricity provider branch, Tesla Energy Ventures, “demonstrated it has the capability to comply with all applicable ERCOT policies, protocols, guidelines, procedures, and rules.”
Tesla Energy Products to Power 20 New ‘EHomes’ in Houston https://t.co/PnlMvKDyjo
— TeslaNorth.com (@RealTeslaNorth) June 22, 2021
“The Commission issues option 1 REP certificate number 10296 in the name “Tesla Energy
Ventures, LLC” to provide retail electric services throughout the area served by ERCOT,” explains the filing.
“Tesla Energy Ventures must provide service only under the name Tesla Energy Ventures,
LLC or Tesla,” it further reads, noting the company “must continuously maintain an office within Texas for the purpose of providing customer service, accepting service of process, and making available in that office books and records sufficient to establish compliance with the requirements of PURA and applicable Commission rules.”
“For the period beginning on the date of certification and ending two years after Tesla
Energy Ventures begins serving load, Tesla Energy Ventures must not make any distribution or other payment to any shareholders or affiliates that would reduce Tesla
Energy Ventures’ shareholders’ equity to an amount that is less than one million dollars, net of assets used for collateral pledged to secure the $500,000 irrevocable standby letter of credit.”
The electric automaker is settling down in Texas. The company’s Gigafactory in Austin is nearing completion, while Tesla also recently relocated its headquarters to the state, departing California. CEO Elon Musk also now has his primary residence in Texas as well.