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Texas Retail Provider to Pay $267,000 to Settle "Leasing" of Name, Interface Capability to Non-REP
December 17, 2012
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Copyright 2010-
Retail electric provider Prier Energy, Inc. and Mr. Billy V. Stewart have entered into a settlement agreement with Staff of the Public Utility Commission of Texas under which Prier Energy would pay a $30,000 fine and reimburse customers $237,500 relating to Prier Energy's leasing of its trade name, and ability to interact with ERCOT, to an entity which acted a retail provider without a REP certificate.
Specifically, the settlement states that Prier entered into a letter of understanding with an unaffiliated and non-certificated entity, EBC Energy Today, LLC (EBC Energy Today) that "leased" Prier's d/b/a Today's Energy, and along with it, Prier's ability to interface with ERCOT and the Commission.
EBC Energy Today used Prier's identification to purchase, take title to, and resell electricity to customers without a REP certificate.
EBC Energy Today contracted with Energy Broker Consultants, LLC (EBC) to enroll customers for EBC Energy Today.
As only reported by Matters, Energy Broker Consultants, LLC, a Delaware Limited Liability Company, and Energy Broker Consultants, LLC, a Texas Limited Liability Company, previously entered into a settlement with Staff to resolve violations arising form the leasing.
With Prier's permission, EBC Energy Today used Prier's name and REP certificate number in marketing materials and in direct communications with customers.
Prier, through the communications, filings, and actions of its former CEO, Michael Mendyk, "deceived ERCOT and the Commission into believing that Prier was serving customers under Prier's d/b/a Today's Energy," the settlement states.
"Prier enabled and facilitated this deception by continuously serving as the point of contact with the Commission and ERCOT during the pendency of the agreement," the settlement states.
EBC charged customers enrolling with EBC Energy Today a fee, the amount of which varied by customer. Pursuant to P.U.C. SUBST. R. 25.474(n) a REP, other than a municipally owned utility or an electric cooperative, shall not charge a fee to an applicant to switch to, select, or enroll with the REP unless an applicant without a Provisioned Advanced Meter requests an out-of-cycle meter read for the purpose of a self-selected switch.
Cumulatively, EBC charged improper enrollment fees that totaled $213,515, the settlement states. Prier never received any of the money collected by EBC from these enrollment fees.
Prior to the settlement, Prier voluntarily repaid certain sums in customer money following complaints by individual customers related to these enrollment fees, but $212,500 in improperly charged enrollment fees have yet to be reimbursed to customers.
Under the stipulation, Commission Staff recommends, and Prier agrees to fund, a reimbursement program of $237,500 (to be paid to the Commission for disbursement) for the improper enrollment fees charged to customers. Staff shall disburse up to $25,000 of such fund to cover the costs of processing and mailing the customer refund checks to the affected customers.
Commission Staff recommends, and Prier agrees to pay, an administrative penalty of $30,000 for the violations committed by Prier as described in the settlement.
The settlement provides that the Commission will demand payment from Prier Energy's Letter of Credit in the amount of $267,500 to satisfy the administrative penalty ($30,000) and fund the reimbursement program ($237,500).
The settlement notes that General Light & Power, Inc. has applied before the Commission for an amendment to the Prier Energy REP certificate to reflect the transfer of all of the Prier Energy Inc. stock to General Light & Power, Inc. (GL&P).
The application remains pending.
The settlement provides that if Prier and GL&P fail for any reason to close the acquisition transaction within 21 calendar days of the Commission's approval of the REP certificate amendment, or if the Commission denies the amendment, Prier shall wind up operations, transfer customer accounts in accordance with Commission rules, and file an application to relinquish REP Certificate No. 10147 within 14 calendar days.
If Prier fails to file an application to relinquish Certificate No. 10147 within 14 calendar days, Prier and Mr. Billy V. Stewart consent to the automatic entry of a Consent Order revoking Certificate No. 10147
Docket: 41048
Copyright 2010-
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