MXenergy Ceases Post-Pay Enrollments in ERCOT, Transferring Customers to Affiliate StarTex Power

MXEnergy Electric Inc. has ceased enrolling new post-pay customers in the ERCOT market, and, starting on the first meter read after January 17, 2012, began transferring existing post-pay customers to affiliate StarTex Power.

MXenergy will continue to serve prepay customers in ERCOT.

The plan was disclosed in a settlement between Staff of the Public Utility Commission of Texas and MXEnergy Electric Inc. under which MXEnergy would pay $64,500 to resolve allegations that MXEnergy was not in full compliance with 48 provisions of the Substantive Rules (40206).

Although the cessation of post-pay enrollments, and transfer of customers, did not appear per se to be a condition of the settlement, the settlement's proposed ordering paragraph would require MXenergy to file an affidavit attesting that it has ceased enrolling new post-paid customers and that it has completed the transfer of its existing post-paid customers to its affiliate StarTex Power, no later than 45 calendar days after the date of an order approving the settlement.

As a result of a compliance audit, Staff alleged that MXenergy was not in full compliance with, among other things, the following:

- P.U.C. SUBST. R. 25.474(d)(5)(I) relating to enrollment via the internet. Staff alleged that a statement regarding the disclosure of the right of rescission was missing.

- P.U.C. SUBST. R. 25.474(h)(4)(C) & 25.474(h)(4)(D) relating to telephonic enrollment. Staff alleged that the pricing disclosure was missing and that the term or length of service was missing.

- P.U.C. SUBST. R. 25.475(c)(2)(D) relating to general contracting requirements. Staff alleged that the Electricity Facts Label did not use the prescribed label for the product.

- P.U.C. SUBST. R. 25.475(d)(2)(C) relating to notification of price changes. Staff alleged that the bill notice on how to obtain information about the price for the next bill was missing.

- P.U.C. SUBST. R. 25.475(e)(2)(F) relating to affirmative consent. Staff alleged that the consumer's affirmative consent was missing.

- P.U.C. SUBST. R. 25.475(g)(2) & 25.475(g)(2)(A) relating to the EFL. Staff alleged that all prices were not disclosed, and that the average price calculations were incorrect.

The settlement states that the transfer of MXenergy's post-paid customers to StarTex has obviated the need for corrective actions by MXenergy at this time.

The settlement notes that MXenergy has represented that, with respect to its few remaining prepaid customers, it is currently in compliance with the Commission's recently adopted prepaid service rule which requires the use of a customer prepayment device or system (CPDS). The prepaid service rule involving the use of a CPDS became effective after the date of the audit.