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Texas Retail Provider To Pay $160,000 To Resolve Alleged Violation Under Settlement With PUCT Staff

January 12, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Spark Energy, LLC would pay an administrative penalty of $160,000 under a settlement with Staff of the Public Utility Commission of Texas to address alleged violation of 16 Tex. Admin Code § 25.454 (TAC), relating to rate reduction program, 16 TAC § 25.480, relating to bill payment and adjustments, and 16 TAC § 25.483, relating to disconnection of service

According to the settlement, in May of 2014, migration to a new billing system and human error, "resulted in Spark's failure to apply low-income rate reduction program discounts in the correct billing cycle in accordance with 16 TAC § 25.454(g)(3)."

"This led to customers accruing false delinquent balances and ultimately resulted in the improper disconnection of customers for non-payment pursuant to 16 TAC § 25.483(c) between June 1, 2014 and August 22, 2014," the settlement states

"Six customers were disconnected for non-payment that would not have been disconnected if the low-income rate reduction program discount was applied in the correct billing cycle," the settlement states

"392 customers enrolled in the low-income rate reduction program were assessed a late fee. 16 TAC § 25.480(c) expressly prohibits charging late fees for customers receiving the low-income rate reduction program discount," the settlement states

Spark reversed the disconnection fees charged to the six customers that were wrongfully disconnected. Spark reversed the late fees charged to 392 customers enrolled in the low-income rate reduction program. Spark's mistakes were corrected in approximately 90 days.

Spark completed the implementation of and migration to a new billing system in August of 2014, and the new system resolves the issues that were the subject of Commission Staff's investigation.

Commission Staff did not find evidence of willful intent to wrongfully disconnect customers or assess improper late fees, the settlement states

Docket 45520

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