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CenterPoint-TDU To Pay $60,000 Under Settlement To Resolve Alleged Violations Concerning Switch-hold Removals

April 28, 2016

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

CenterPoint Energy Houston Electric, LLC would pay $60,000 under a settlement with Staff of the Public Utility Commission of Texas to resolve an investigation of the TDU for alleged violations of 16 TAC § 25.480(m)(2), related to placement and removal of switch-holds.

According to the settlement, CenterPoint-TDU self-reported it failed to remove a total of 113 switch-holds on the same day the requests for removal were submitted, as follows:

a. According to the settlement, CenterPoint--TDU reported that on May 31, 2012, one switch-hold was not removed on the same day the request for removal was submitted. During a system outage on that day, CenterPoint-TDU manually removed 283 switch-holds but inadvertently missed one removal request, which was completed on June 3, 2012. No switches were received for the customer during that time.

b. According to the settlement, CenterPoint-TDU reported that on June 7, 2012, one switch-hold was not removed on the same day the request for removal was submitted. After a system outage related to the upgrade to Texas SET version 4.0, CenterPoint-TDU's transaction reconciliation inadvertently missed one switch-hold removal request, which was completed on June 12, 2012. No switches were received for the customer during that time

c. According to the settlement, CenterPoint-TDU reported that 110 switch-holds were not removed on the same day the requests for removal were submitted on various dates from July 6 to 20, 2012. These errors occurred during a system change being implemented around the same time as the upgrade to Texas SET version 4.0, and the errors were discovered during a review of transaction reconciliation reports. On July 20, 2012, a switch request was received for one of the customers and was rejected; a switch was accomplished on July 25, 2012. On July 20, 2012, a switch request was received for one of the customers and was rejected; a switch was accomplished on August 13, 2012. No switches were received for the other 108 customers during that time.

d. According to the settlement, CenterPoint-TDU reported that on December 20, 2013, one switchhold was not removed on the same day the request for removal was submitted. During system trouble on that day, CenterPoint-TDU inadvertently missed one switchhold release, which was completed on January 2, 2014. No switches were received for the customer during that time.

CenterPoint-TDU reported that it timely processed 2,923 switch-hold removals in May 2012; 3,302 switch-hold removals in June 2012; and 3,080 switch-hold removals in July 2012. CenterPoint-TDU maintains that most transaction performance standards approved in Project No. 36141, related to the retail performance metrics in 16 TAC § 25.88, are between 96% and 98%, including a 98% performance standard to process a switch transaction on the later of the requested date or two business days of receipt of the transaction. There is no specific performance standard provided for the removal of switch-holds.

CenterPoint-TDU maintains that at all relevant times, including in July 2012, it met the 98% performance standard to timely process a switch transaction, as required by the transaction performance standards approved in Project No. 36141. CenterPoint-TDU also maintains that it achieved a nearly 100% performance standard for release of switch-holds on the same day the request was received in May 2012, June 2012 and December 2013, and more than 96% in July 2012.

CenterPoint-TDU thus believes that an administrative penalty is inappropriate in this matter, but entered the settlement to avoid the uncertainty, time, inconvenience and expense of further litigation of this matter

Commission Staff maintains that the requirement in PURA § 39.101 and 16 TAC § 25.480(m)(2) does require 100% compliance and the performance metrics found in 16 TAC § 25.88, and that the accompanying Form for Performance Measures do not include switch-hold placement or removal in the list of technical market transactions which have compliance standards below 100%.

CenterPoint-TDU has implemented appropriate corrective actions after each of the above situations.

CenterPoint Energy Houston Electric provided the following statement to EnergyChoiceMatters.com: "We are pleased to have resolved this matter in a manner acceptable to both the Commission staff and our company."

Docket 45895

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