Texas REP Would Pay $42,500 to Resolve Alleged Customer Deposition, Prepayment Violations

E-Now, LP would pay $42,500 under a settlement with Staff of the Public Utility Commission of Texas to resolve allegations that E-Now failed to maintain funds, in the appropriate instruments and accounts, to cover 100% of customer deposits and advance payments.

E-Now, LP voluntarily exited the market and relinquished its REP certificate earlier this year, in an orderly transition which saw its book sold to two different REPs (click here).

P.U.C. SUBST. R. 25.107(f)(2)(B) requires that a REP keep customer deposits in an escrow account or segregated cash account or provide an irrevocable stand-by letter of credit payable to the commission in an amount sufficient to cover 100% of the REP's outstanding customer deposits held at the close of each month.

According to the settlement, beginning in August 2013 and extending through December 2013, E-Now held customer deposits and pre-paid amounts over $50 in an amount ranging from $328,463.65 to $636,061.19. For the time period of August through December 2013, the escrow account established to cover deposits and prepaid amounts over $50 (escrow account) lacked funds sufficient to do so. In January of 2014, E-now asserts that it discovered this error and funded the escrow account in an amount sufficient to cover all of its outstanding customer deposits and advance payments.

P.U.C. SUBST. R. 25.107(f)(2)(C) requires a REP providing prepaid service to keep all deposits and an amount sufficient to cover the credit balance that exceeds $50 for all customer accounts that have a credit balance exceeding $50 at the close of each month in an escrow account, or to provide an irrevocable stand-by letter of credit payable to the commission in an amount equal to or greater than the amount required to be deposited in the escrow account.

According to the settlement, from January 2012 until July 2013, E-Now held pre-paid amounts over $50 in an amount ranging from $16,714.42 to $49,101.97. During this time period, E-Now had an escrow account of only $12,000 to cover the pre-paid amounts over $50. E-Now asserts that it did, however, have $50,000 set aside in a non-segregated account that was set aside to cover pre-paid amounts over $50.

Additionally, P.U.C. SUBST. R. 25.485(e)(1)(D) states that a REP shall investigate all informal complaints and advise the Commission in writing of the results of the investigation within 21 days after the complaint is forwarded to the REP by the Commission. The settlement states that with respect to 53 informal complaints filed between August 2011 and May 2014, E-Now failed to advise the Commission in writing of the results of the investigation within 21 days after the complaints were forwarded to the REP by the Commission.

Docket 43151