Texas Retail Provider To Pay $75,000 Under Settlement With Texas PUC Staff To Resolve Alleged Switch-Hold Violations

AP Gas & Electric (TX) LLC (APG&E) would pay $75,000 under a settlement with Staff of the Public Utility Commission of Texas (Commission) to resolve APG&E's alleged violations of 16 Tex. Admin. Code §§ 25.480(m) and (j)(8) (TAC), concerning removal of switch-holds.

In April 2016, the PUCT's Oversight and Enforcement (O&E) Staff opened an investigation of APG&E as part of O&E's compliance review of retail electric providers (REPs) that provide residential electric service in Texas.

16 TAC § 25.480(m) requires that the REP request removal of the switch-hold by the transmission and distribution utility (TDU), "after the customer's obligation to the REP relating to the switch-hold is satisfied."

16 TAC § 25.480(j)(8) provides that a REP, "shall submit a request to remove the switch-hold, pursuant to subsection (m) of this section, after the customer's payment of the deferred balance owed to the REP."

16 TAC § 25.480(j)(5)(B) requires the REP to inform the customer that, "The switch-hold will be removed after your final payment on this past due amount is processed."

16 TAC §25.480(h)(7) requires a REP to inform the customer that a switch-hold, "...will be removed after your deferred balance is paid arid processed."

The settlement states that, "According to information obtained by O&E from APG&E during the course of this investigation, APG&E offers deferred payment plans (DPPs) to customers in accordance with 16 TAC § 25.480(j) and applies switch-holds to electric service identifiers (ESIDs) that are subject to a DPP."

The settlement states that, "Data provided by APG&E shows that APG&E did not timely initiate a transaction to release one hundred forty seven (147) switch-holds after the customers obligation to the REP related to the switch-hold was satisfied."

The settlement states that, "The one hundred forty seven (147) switch-holds remained in place for weeks or months after the customer's obligation to the REP related to the switch-hold was satisfied."

The settlement agreement resolves all claims concerning Commission Staff's investigation of APG&E's switch-hold removal practices from January 1, 2015, to December 31, 2015.

Docket 47815