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Texas REP, TDU Seek Dismissal of Complaint, As Moot, That Implicates REPs' Obligation to Inform Customers of TDU Rate Changes

May 6, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

CenterPoint Energy Houston Electric, LLC and Ambit Energy have jointly petitioned the Public Utility Commission of Texas to dismiss a complaint case as moot concerning the imposition of demand charges on a customer after their delivery rate class was reclassified.

The complaint centers on a customer (Nawaid Isa) whose delivery schedule was changed by CenterPoint Energy Houston Electric after installation of an in-line pole to power a cricket field. The customer has disputed Ambit's pass-through of charges related to the reclassification

The complaint has implicated Subst. R. 25.481(b1)(1) which states that, "The REP shall inform the customer of the product or service being offered, including all associated charges, and explicitly inform the customer that the associated charges for the product or service will appear on the customer’s electric bill."

The duties of REPs under this provision, including an obligation for REPs to notify customers of delivery rate changes in advance of billing, have been debated in the case (click here for prior story for more on the greater market-wide implications for the complaint)

CenterPoint Energy Houston Electric and Ambit Energy have moved to dismiss the complaint because any relief to which the customer would be entitled, based on several preliminary orders determining the scope of the case and the lack of jurisdiction to award damages, has already been granted.

Specifically, CenterPoint Energy Houston Electric and Ambit Energy states that the complainant has agreed in testimony that Ambit has credited the customer for the disputed demand charges.

"Mr. Isa's statements in his sworn deposition and Ambit's direct testimony conclusively establish that the ICC paid no demand charges to Ambit while it was Ambit's customer, Ambit has forgiven the ICC's [complainant's] outstanding balances owed to it, and therefore, there can be no refund or credit for any demand charges billed to the ICC," CenterPoint Energy Houston Electric and Ambit Energy state

"Mr. Isa agreed that he had already received a credit for the amounts the ICC did not pay to Ambit, which included all of CenterPoint's demand charges. The ALJ has already recognized that, should Mr. Isa prevail, a credit or refund of paid, unauthorized demand charges is the proper -- and indeed only -- remedy Mr. Isa would be able to recover in this complaint. But under the facts here, if Mr. Isa were to prevail, any judgment in his favor 'would ostensibly require something to be done which had already taken place.' Therefore, this complaint is moot. When a case is moot, the only course of action is dismissal, and this complaint should be dismissed," CenterPoint Energy Houston Electric and Ambit Energy stated

Docket 42111

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