Energy Choice
                            

Matters

Texas Retail Provider To Pay $50,000 Penalty, Provide $72,000 In Compensation To Affected Customers Under Settlement With Texas PUC Staff To Resolve Alleged Disconnection Violations

November 22, 2017

Email This Story
Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

STAT Energy, LLC would pay an administrative penalty of $52,600 and provide in aggregate over $72,000 to affected customers under a settlement with Staff of the Public Utility Commission of Texas to resolve alleged violations of 16 Tex. Admin. Code (TAC) §§ 25.480(j)(6), related to Deferred Payment Plans and Other Alternate Payment Arrangements; 25.483(c), related to Disconnections of Service; and 25.483(l), related to Disconnect Notices

According to the settlement, Commission Staff investigated STAT Energy as part of a REP compliance review it initiated in 2015. A portion of the investigation involved reviewing REPs compliance with Commission rules regarding Deferred Payment Plans (DPPs) granted to customers who expressed an inability to pay their bills.

Pursuant to 16 TAC § 25.480(j)(6) related to bill payment and adjustments, a REP may request disconnection of service if a customer does not meet the terms of a DPP, but must provide appropriate notice in accordance with 16 TAC § 25.483.

The limited authority for a REP to disconnect a customer's electric service is described in 16 TAC § 25.483, related to disconnection of service. According to 16 TAC § 25.483(c), a REP may authorize the disconnection of a customer's electric service after proper notice and not before the first day after the disconnection date in the notice for, amongst other reasons, a "failure to comply with the terms of a deferred payment agreement made with the REP."

Pursuant to 16 TAC § 25.483(l), a disconnection notice for nonpayment shall have a disconnection date not less than 10 days after the notice is issued.

The third sentence of 16 TAC § 25.480(j)(6) states, "The requirements of paragraph (2) of this subsection shall not apply with respect to a customer who has defaulted on a deferred payment plan." Paragraph 2 "of this subsection" does not refer to 16 TAC § 25.483(l)(2); it refers to 16 TAC § 25.480(j)(2), which provides that the REP is not required to offer an additional deferred payment plan in the event a customer fails to meet the obligations of the original deferred payment plan.

According to the settlement, "STAT Energy's misinterpretation of 16 TAC § 25.480(j)(6) is the reason that STAT Energy requested disconnection of service of customers who did not meet the terms of a DPP without providing at least 10 days' notice."

The settlement states, "STAT Energy emailed customers who did not meet the terms of a DPP reminders to pay three days before the disconnection date and another reminder on the day of the disconnection date."

The settlement states, "As part of the REP compliance review, Commission Staff determined that from January 1, 2015 through December 31, 2015, STAT Energy requested the disconnection of service of 62 customers who did not meet the terms of a DPP without providing at least 10 days' notice, as required by 16 TAC §§ 25.480(j)(6) and 25.483(l). There were 127 instances of not providing proper notice of disconnection to these customers."

The settlement states, "STAT Energy self-reported that from January 1, 2016 through May 31, 2017, it requested the disconnection of service of 662 customers who did not meet the terms of a DPP without providing at least 10 days' notice, as required by 16 TAC §§ 25.480(j)(6) and 25.483(l). There were 1,534 instances of not providing proper notice of disconnection to these customers."

Under the settlement, Commission Staff recommended, and STAT Energy agrees to pay, an administrative penalty of $52,600 related to the matter described in the settlement.

Under the settlement, in addition to paying the administrative penalty, STAT Energy agrees to provide a $100 check to each of the 724 customers on DPPs whose service was disconnected without receiving 10 days notice from January 1, 2015 to May 31, 2017.

In order to prevent future non-compliance, STAT Energy has implemented new procedures to ensure that it sends disconnection notices to customers for failure to meet the terms of a DPP at least 10 days before the disconnection date in compliance with 16 TAC § 25.483(l), the settlement states

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Business Development Manager -- Retail Supplier -- Houston / Dallas
• NEW! -- Director, Retail Energy Supply and Pricing -- Retail Supplier -- Houston
• NEW! -- Operations Analyst -- Retail Supplier
• NEW! -- Sales & Marketing Manager -- Retail Supplier
• NEW! -- Retail Energy Account Manager -- DFW
• NEW! -- Director of Affiliate Business Development -- DFW
• NEW! -- Commercial Lead Generation Specialist -- Retail Provider
• NEW! -- General Counsel/ Sr Attorney, Retail Electricity and Gas -- Retail Supplier -- Houston
• NEW! -- Operations Manager/Director -- Retail Supplier -- Houston
• NEW! -- Analyst/Senior Analyst, Energy Management and Marketing -- Retail Supplier -- Houston
• NEW! -- Pricing and Structure Analyst -- Retail Supplier
• NEW! -- Retail Sales Specialist, Telemarketing /D2D/Mass Markets -- Retail Supplier -- Houston
• NEW! -- Market Operations Manager -- Retail Supplier
• NEW! -- Financial Analyst -- Retail Supplier -- Houston
• NEW! -- Pricing Analyst -- Houston