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Texas PUC Staff Maintains Level For Sought Penalty For Company Alleged To Have Acted As Aggregator Without License
In updated testimony, Staff of the Public Utility Commission of Texas's Oversight and Enforcement Division have proposed that an administrative penalty of $15,000 be imposed on Current Utilities, Inc., "for failing to register as an aggregator."
As previously reported, PUC Staff had filed a Notice of Violation against Current Utilities, alleging that Current Utilities meets the definition of aggregator and operated as such without a certificate. Current Utilities argued that it does not combine customers into a "single purchasing unit", and only arranges for customers to purchase electricity as individual customers, and is therefore not an aggregator.
An ALJ has issued an interim order granting a partial summary decision in favor of Staff, concluding that Current Utilities, Inc., "served as an aggregator and provided aggregation services without first registering as an aggregator."
See more discussion on the ALJ's summary judgment here
The ALJ had set the matter of the appropriate penalty for Current Utilities for further hearing procedures.
In updated testimony, Staff maintained its prior recommendation from the initial NOV that a penalty of $15,000 is appropriate.
"Current Utilities has operated as an aggregator without registration with the Commission from August 2010 to present, a span of 2,440 days. Each day that Current Utilities continues to operate without registering as an aggregator with the Commission is a separate violation of PURA § 39.353(a) and 16 TAC § 25.111(d)(1). Thus, Current Utilities has committed over 2,440 separate Class B violations. The maximum penalty that the Commission can assess is $12,200,000," Staff said in testimony
"Current Utilities failure to register as an aggregator is a serious violation because it circumvents and undermines the authority granted to the Commission by the Texas legislature to make and enforce rules necessary to protect customers of electric services," Staff said in testimony. "Current Utilities' actions prevented the Commission from assessing Current Utilities' competency and experience to provide aggregation services, and limited the Commission's ability to monitor compliance with customer protection provisions, disclosure requirements, and marketing guidelines established by the Commission," Staff said in testimony
Staff said that the proposed $15,000 penalty is appropriate and adequate to deter future violations
"Based upon Commission Staff's knowledge and belief, Current Utilities is a small company in terms of capital and revenue and the recommended penalty of $15,000 is sufficient to deter future violations. Given the size of Current Utilities, the maximum penalty of $12,200,000 would clearly cause the company severe financial harm," Staff said in testimony
Docket 45621
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April 7, 2017
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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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