Texas Retail Electric Provider Enters Settlement With PUC Staff Over Collection Of Customer Deposits

Quest Distributors, LLC (Quest) would pay $20,000 under a settlement with Staff of the Public Utility Commission of Texas to resolve alleged violations of 16 Texas Administrative Code (TAC) § 25.107(f)(2)(B), concerning protection of customer deposits and (i)(3), concerning requirements for reporting and amending certification.

Under 16 TAC § 25.107(0(2)(B), a REP shall keep customer deposits and residential advance payments 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 REPs outstanding customer deposits and residential advance payments held at the close of each month

Under 16 TAC § 25.107(i)(3), a REP shall apply to amend its certification within ten working days of a material change to the information provided as the basis for the Commission's approval of the certification application.

The settlement states that, "In its September 4, 2015 application to be certified as a REP, Quest indicated that it did not wish to have the option of collecting deposits from customers."

The settlement states that, "In June 2017, Quest began collecting customer deposits without applying to amend its certification to receive authorization to collect customer deposits."

The settlement states that, "As of June 15, 2018, Quest had collected $20,500 in customer deposits. Quest did so without keeping the deposits in an escrow account or segregated cash account, or providing an irrevocable stand-by letter of credit payable to the Commission in an amount sufficient to cover 100% of Quest's outstanding customer deposits held at the close of each month."

The settlement states that, "On June 15, 2018, Quest filed an application to amend its certificate to allow for the collection of customer deposits and provided an irrevocable standby letter of credit in the amount of $50,000 as required under 16 TAC § 25.107(0(2)(B). The Commission approved the application on August 7, 2018."

The settlement states that, "Quest neither admits nor denies that a violation occurred."

Docket 49576