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Texas REP to Pay $75,000 Under Settlement With Staff

May 8, 2013

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Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Staff of the Public Utility Commission of Texas and Acacia Energy, Inc. have filed for approval of a settlement agreement under which Acacia Energy would pay $75,000 to resolve an investigation prompted by customer complaints involving deferred payment plans and switch-holds placed on accounts at enrollment.

Staff alleged that Acacia Energy was not in compliance with P.U.C. SUBST. R. 25.480(l), relating to switch-holds, as Staff alleged that Acacia applied switch-holds to customer ESI IDs at customer enrollment.

Staff alleged that Acacia Energy was not in compliance with P.U.C. SUBST. R. 25.480(j), relating to deferred payment plans and other alternative payment arrangements, as Staff alleged that Acacia placed some customers into a deferred payment plan which was not in accordance with the rule.

Staff alleged that Acacia Energy was not in compliance with P.U.C. SUBST. R. 25.480(m)(2), relating to placement and removal of switch-holds, as Staff alleged that Acacia failed to submit a proper request to remove a switch-hold within the required time period after the deferred amount was satisfied.

Additionally, as a result of the investigation, Staff alleged that Acacia Energy was not in compliance with over a dozen of the substantive rules, including many rules containing specific requirements and disclosures for prepaid products. Staff also alleged that Acacia Energy was not in compliance with P.U.C. SUBST. R. 25.475(c)(1)(A), relating to general disclosure requirements, as Staff alleged that, "Acacia provided information to applicants during enrollment which could be considered unclear, deceptive and/or misleading."

The settlement would resolve all issues related to alleged Commission rules violations arising out of the facts described in the settlement, including any and all complaints from customers involving deferred payment plans and switch-holds placed on accounts at enrollments prior to June 30, 2012.

The settlement states that Acacia Energy has fully cooperated with Commission Staff in the investigation and, upon request by Commission Staff, voluntarily agreed to cease applying deferred payment plans and switch-holds contemporaneously with customer enrollment.

Per the settlement, Acacia agrees that it will no longer apply deferred payment plans and switch-holds contemporaneously with customer enrollment unless or until there is final Commission action which permits such practice.

The settlement provides that neither the payment of the penalty amount by Acacia nor anything in the agreement shall be construed as an admission of the violations alleged by Staff, nor an admission of liability by Acacia.

Docket: 41473

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