Texas Retail Provider to Pay $40,000 Regarding Use of Switch-hold At Enrollment

Young Energy, LLC has entered into a settlement agreement with Staff of the Public Utility Commission of Texas to resolve an investigation into alleged violations of various customer protection rules, including the practice of applying deferred payment plans and switchholds contemporaneously with customer enrollment.

Young Energy, LLC would pay $40,000 to resolve the allegations. The agreement provides that such payment shall not be construed as an admission of the violations alleged by Staff, nor an admission of liability by Young Energy.

Specifically, Staff alleged that Young Energy was not in compliance with, among other things, the following customer protection rules for retail electric service:

a. P.U.C. SUBST. R. 25.498(i), relating to deferred payment plans for prepaid service. Staff alleged that Young initiated deferred payment plans for customers at customer enrollment;

b. P.U.C. SUBST. R. 25.480(l), relating to switchholds. Staff alleged that Young applied switchholds to customer ESI IDs at customer enrollment.

The settlement states that Young fully cooperated with Commission Staff in the investigation and voluntarily agreed upon request by Commission Staff to cease applying deferred payment plans and switchholds contemporaneously with customer enrollment.

"Young agrees that it will no longer apply deferred payment plans and switchholds contemporaneously with customer enrollment unless or until there is final Commission action which permits such practice," the settlement states.

Docket: 41209