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Texas Retail Provider To Pay $42,000 Under Settlement With Texas PUC Staff
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Ambit Texas, LLC would pay $42,500 under a settlement with Staff of the Public Utility Commission of Texas to resolve and conclude Commission Staff’s investigation of Ambit for
alleged violations of PURA § 17.004(a) and 16 Texas Administrative Code (TAC) § 25.474(d)(11),
concerning Ambit’s online enrollment confirmation email practices between December 28, 2017
and October 21, 2019.
The period that was the subject of the investigation which prompted the settlement occurred prior to Ambit's acquisition by Vistra in November 2019. The settlement states that there were no deficiencies observed in the confirmation email template used on or
after the date Vistra acquired Ambit.
Under 16 TAC § 25.474(d)(5)(I), a REP is required to inform customers of the right
to rescission established under 16 TAC § 25.474(j) during the online enrollment
process.
Under 16 TAC § 25.474(d)(11)(A) a REP is required to send a confirmation e-mail
to each customer following the completion of their online enrollment process. If
that enrollment is a switch, the confirmation e-mail must include a clear and
conspicuous notice of the applicant’s right to rescission established under 16 TAC
§ 25.474(j).
The settlement states that, during an investigation, "Commission Staff reviewed five online enrollment
confirmation e-mail templates used by Ambit to confirm online enrollments
between December 28, 2017 and October 21, 2019. Of the five templates reviewed
by Commission Staff, only the most recent template, in use since October 21, 2019,
informed customers who switched providers to Ambit through the online enrollment process of their right to rescission as required under 16 TAC §
25.474(d)(11)(A)."
The settlement states, "Between December 28, 2017 and October 21, 2019, Ambit failed to disclose the
right to rescission in 15,729 online enrollment confirmation emails sent to
customers who effectuated a switch by using Ambit’s online enrollment program."
The settlement states, "On October 21, 2019, Ambit corrected its confirmation e-mail template to include
the right of rescission disclosure required under 16 TAC § 25.474(d)(11)(A)."
The settlement states, "Vistra
Corp. (f/k/a Vistra Energy Corp.) (Vistra) acquired Ambit in November 2019.
There were no deficiencies observed in the confirmation email template used on or
after the date Vistra acquired Ambit."
The settlement states, "Ambit asserts that all customers that enrolled online between December 28, 2017
and October 21, 2019 received disclosure of their right to rescission during the
online enrollment process and no customer was prevented from exercising their
right of rescission."
The settlement states, "The parties agree that, by failing to disclose the right of rescission in 15,729 confirmation
emails sent to customers who effectuated a switch using Ambit’s online enrollment process
between December 28, 2017 and October 21, 2019, Ambit violated PURA § 17.004(a)(3)
and 16 TAC § 25.474(d)(11)(A)."
The total penalty of $42,500 reflects the following: (1)
Ambit will pay a $21,250
administrative penalty to the Commission, and (2) Ambit will make a $21,250 donation to Ambit’s bill payment
assistance program (Ambit Energy Aid) for 2021.
Under the settlement, the $21,250 donation to Ambit Energy Aid will be in addition to amounts otherwise
committed by Ambit to its bill payment assistance program.
The settlement provides that, upon receiving the $21,250 donation from Ambit, Ambit Energy Aid will disburse
the $21,250 donation to one or more independent customer assistance organizations
that provide bill payment support, and such payments must go toward the payment
of electric bills in Texas for Ambit residential customers in need of bill payment
support. The independent customer assistance agencies that will receive funds
provided under this agreement will be 501(c)(3) charitable organizations.
The settlement provides that Ambit will not include the $21,250 donation required under the terms of this
agreement in any marketing, advertising, or promotion efforts
Under the settlement, Vistra agrees to at least maintain the same level of bill payment assistance funding
for 2021 as it had in 2020.
Ambit has taken various remedial measures to improve and maintain compliance with the Commission’s
customer protection rules.
As noted above, Ambit has revised its online enrollment
confirmation e-mail template to include the right of rescission disclosure required under 16
TAC § 25.474(d)(11)(A).
Docket 52550
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September 10, 2021
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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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