Texas Retail Provider To Pay $160,000 Under Settlement With Texas PUC Staff

Frontier Utilities, LLC would pay $160,000 under a settlement with Staff of the Public Utility Commission of Texas to resolve an investigation of Frontier for alleged violations of 16 Tex. Admin. Code §§ 25.474(n), related to Fees, and 25.498(c)(7)(G), related to Requirements for Prepaid Service.

Frontier Utilities said in a statement that it, "has always operated with the intent to be fully compliant with all Commission rules," and that, "[a]s part of the settlement, Frontier has agreed to make some changes to the legacy structure and operations of its prepaid service option based on the most recent regulatory interpretation of the prepaid service rules." (full statement below).

Pursuant to 16 TAC § 25.474(n), a retail electric provider (REP) -"shall not charge a fee to an application to switch, to, select, or enroll with the REP unless an applicant without a Provisioned Advanced Meter requests an out-of-cycle meter read for the purpose of a self-selected switch."

According to the settlement, "Frontier charged a $10 'one-time, non-refundable account set-up fee' to 12,472 customers which was disclosed in its prepaid disclosure statement as a non-recurring fee to initiate service."

Pursuant to 16 TAC § 25.498(c)(7)(G), a REP shall, "refund to the customer or an energy assistance agency, as applicable, any unexpended balance from the [customer's] account within ten business days after the REP receives the final bill and final meter read from the TDU."

According to the settlement, "Frontier failed to timely return an unexpended balance to 1,559 customers who did not request that their credit balance be returned within ten business days after Frontier received the final bill and final meter read from the TDU. Due to an oversight in the computer system programming, Frontier did not return the credit balance until the customer requested the balance be returned."

"These customers were not obligated to request that their credit balance be returned once they were no longer customers of Frontier," the settlement states.

Frontier has eliminated the account set-up fee from its contract documents and has printed and mailed checks for any remaining credit balances as required under Commission rules to customers.

Frontier Utilities provided the following statement to EnergyChoiceMatters.com:

"Today, Frontier Utilities entered into a Settlement Agreement with the Public Utility Commission of Texas relating to an investigation regarding regulatory compliance of our prepaid service offerings. Frontier Utilities has always operated with the intent to be fully compliant with all Commission rules. As part of the settlement, Frontier has agreed to make some changes to the legacy structure and operations of its prepaid service option based on the most recent regulatory interpretation of the prepaid service rules. Frontier Utilities continues to go the extra mile to serve its customers with integrity and with pride in its operations. Frontier believes it is in the company’s and its customer’s best interest to resolve this matter with an agreed settlement with the Public Utility Commission of Texas.

"About Frontier Utilities

"Frontier Utilities is a privately-held retail energy company with headquarters and operations in Houston, Texas. Frontier Utilities serves residential and commercial electricity and natural gas customers in Texas, Pennsylvania, New Jersey, Ohio and New York. The firm has been providing affordable energy plans and great customer service for over eight years, holds a 2014, 2015 and 2016 Better Business Bureau Award of Distinction and is committed to giving back to the communities in which it operates."

Docket 46826